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Getting term life insurance from your typical local Chicago agency can be overwhelming and complicated. You have to sort through death benefits and policy coverage amounts, then decide what term length you need.
Life insurance doesn’t have to be complicated.
At Life Assurance COA, Chicago’s best local insurance agency, you will learn everything you need to know about the different policies in plain language. We believe insurance policies should be made accessible to the everyday individual.
Who Should Get Term Life Insurance?
When shopping for term life insurance from Chicago insurance agencies, you should consider your needs in a policy. Certain factors may play into the premium you pay, such as age, pre-existing medical conditions, and the coverage you need. At Life Assurance Company of America, we provide residents of Chicago with term life insurance policies with no medical exam.
Life insurance is not limited to any one individual’s circumstances, but you should consider getting term life insurance if you have any dependents who would become liable for any debt or expenses incurred by your death, or who rely on your income.
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“Before you start shopping for term life insurance, decide what term length you want. Locking in longer-term costs more of course and there are policies, like. That doesn’t mean that you should skimp on coverage to save money. The key is to have a term that is long enough to cover your main financial concerns, such as the years until you retire or the years of a mortgage.”
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Cameron Huddleston
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Individuals who rely on your income will need the time to recover from the loss as well as get on their feet financially, and a life insurance policy can help with that financial burden. A proactive approach to life insurance is critical. Policies are not just necessary for older or terminally ill individuals, because even at a young age with a clean bill of health, accidents can happen.
Types of Term Life Insurance
Before you commit to a policy, you should consider what you are looking for. Depending on which of the two main types of life insurance you purchase, your premium and the amount of coverage you are eligible for may be affected by different factors. The two main types of life insurance are Term or Permanent.
Term life provides coverage for a set amount of time as determined at the time of purchasing the policy. This policy provides coverage until the term expires, at which point it can be renewed if you still need life insurance. These policies are typically more accessible and only cover the basics. (2)
“Besides being affordable, term life insurance is also pretty straightforward. […] you're only getting the protection of a death benefit, so there's not a lot of fine print.”
-Policygenius
Permanent life insurance policies provide coverage for the duration of your life and often come with additional benefits depending on the provider. Permanent life insurance is typically more expensive and requires extensive medical exams to ensure the policyholder is in good health, making it a choice that is not always accessible to everyone.
Benefits of Term Life Insurance
There are many benefits that the average person can take advantage of by shopping for term life insurance rather than a full permanent insurance policy. As the best local insurance agency in Chicago, Life Assurance COA provides these benefits as a way to cover the basic needs in a plan without going over the top with excessive fine print and confusing language, making life insurance more accessible to everyone:
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1. Simple, straight-forward policies
Term life insurance purely covers the basics of life insurance, giving you a simple and straight-forward policy without any complicated or confusing language. The three main decisions you should keep in mind with term life insurance are coverage, the term length, and the accountability of the company providing the policy.
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2. Less expensive premiums
Many individuals today are financially burdened by high rent and cost of living expenses. Choosing term insurance can help reduce the financial burden of an insurance policy while still providing the peace of mind and security that comes with it. Because the policy provides fewer benefits while still covering the basics, the premium is lower.
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3. More flexible terms
Term policies can be as short-term as 1 year, giving you the flexibility to choose the right term length for your needs. Choosing a term length will lock in your rate for that term, removing the risk of inflation increasing your rates over a few years when the policy expires.
Overall, term life insurance policies from our Chicago agency make insurance more accessible to everyday people, especially young families or individuals who have others depending on their income but cannot necessarily afford a full life insurance policy.
How Much Does Life Insurance Cost?
Term life insurance can range in cost based on the provider you choose when you are shopping for insurance, as well as a few other factors such as age, location, and current health condition.
You should expect to pay a premium on any life insurance policy. This premium can change depending on your current circumstances and coverage needs. By discussing your needs in a policy directly with an agent, you can determine what you need out of an insurance policy and whether you can lower the premium in any way.
Some local insurance agencies in Chicago, like Life Assurance COA, do not require a physical health exam and offer flat premium rates for basic service to make life insurance policies more accessible to everyday people in any health condition.
Term insurance is less expensive as you are only receiving the benefit of the insurance, rather than any additional cash policy that might come with permanent insurance.
Insurance rates can also fluctuate depending on the current market, so it’s necessary to lock in a premium rate as soon as possible to avoid paying more by waiting.
If you are interested in opening a term life insurance policy from Chicago’s best insurance agency, contact the experts at Life Assurance COA to determine which policy is the right choice for you.
How Much Life Insurance Do You Need?
Does Term Insurance Expire?
Yes, term life insurance expires. “Term” refers to a set amount of time where the policy is active, after which it expires. When a policy expires, it will no longer cover you in the event of death, and the company will not pay out, so it is important to continue renewing your term insurance if you are concerned about your health or the wellbeing of your family.
A common misconception, however, is that term life insurance expires at a certain age. While insurance salesmen may discuss the policy ending at a certain age, this is not the factor the term is based on.
Term insurance is based on a set period regardless of age, and the policy will expire at the end of that term. Permanent life insurance, on the other hand, will stay in effect until the payments lapse – you must pay this insurance on time in full every month for it to continue, while term life insurance may be paid up-front or in installments.
Many people in Chicago prefer term life insurance over permanent as they can ensure the policy stays in effect even if they suffer a financial loss. The period in which term life insurance can remain active can be as short as 1 year and as long as 30. Most people who are in good health will opt for 30-year life insurance. If you have received medical news or are older, a shorter term may be beneficial as it will have a lower premium.
What Happens if I Outlive My Term Life Insurance?
When you purchase a term life insurance policy, you can count on that policy being active over the term discussed, typically 10, 15, or 30 years. You will pay your pre-determined premium for the duration of the contract.
If you pass away while the life insurance policy is active, your family or other beneficiaries will receive a death benefit, which is the amount the insurance company pays upon death to the family.
If you outlive your term life insurance, well, congratulations! Ideally, you will no longer need insurance at that time, though you can always renew the policy. You should start looking for a new term policy about six months before your current one expires.
Your family will not receive a death benefit if your life insurance policy has expired, so you should always renew it, transfer it to a permanent policy, or ensure you have a windfall for your family to fall back on. A windfall should provide your beneficiaries with enough money in savings. Your debt should be completely paid off, so the savings do not go to the collected debt instead. An update will ensure the right beneficiaries receive the money. This is important, especially if you wish to include beneficiaries who are not immediate family, or if you do not have next of kin.
At What Age Should You Buy Life Insurance?
There is no best age to buy life insurance. Your situation is unique to your circumstances, and age is not a factor that decides most major life events.
Young individuals tend to avoid purchasing life insurance because there is a stigma that life insurance is only for seniors. Unfortunately, tragic events can occur at any stage in life.
A medical complication or fatal car accident at 20 could leave your loved ones on the hook for your credit card debt and funeral costs just as easily as it could at 40, 60, or 80.
It is recommended to purchase life insurance once you have other people around you who depend on your income, as they will be able to benefit not just from the policy paying for funeral costs, but also as a buffer for them to get on their feet financially. The younger you are when you first purchase your insurance policy, the lower the premium you will pay.
Too often, dependent family members who rely on an individual as the primary source of income can fall victim to debt, eviction, and other unfortunate circumstances after the individual’s passing. This is a situation that a life insurance policy would have prevented.
Life Assurance supplies basic life insurance plans to individuals between the age of 18-65. If you are outside of this age range, contact us to learn more about what we can do for you
Start Your Life Insurance Policy Today
Are you ready to start your term life insurance policy and get the peace of mind that you deserve?
A life insurance policy isn’t just for retirees or people with significant health concerns. Accidents can happen, and it’s up to you to keep your family protected in the event of your passing.
On top of the bereavement, an event like this can significantly impact your family’s financial standing without life insurance, as the costs of a funeral can be expensive for even basic services. Help your beneficiaries stay on their feet with a simple, basic life insurance policy without any complicated fine print or confusing legal implications.
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Life Assurance COA is the best insurance agency in Chicago, and the right choice for you. We provide simple, easy-to-understand policies for every person, not just a few. Click here for more information.
References:
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Cameron Huddleston, 5 Things to Know Before You Buy Term Life Insurance, https://www.forbes.com/advisor/life-insurance/term-life-know-before-you-buy/
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Policygenius, The Big Difference Between Whole and Term Life Insurance, https://www.huffpost.com/entry/the-big-difference-between-whole-and-term-life-insurance_b_10946830
When you are talking to an insurance agent, the language and terminology that is thrown around can be confusing and difficult to understand. All you want is insurance, not education in legal terms.
You deserve to understand the policy terms that you are agreeing to and gain peace of mind knowing your policy covers you in an unfortunate event. In this section, the experts at Life Assurance COA have compiled some of the frequently asked questions about term life insurance and provided answers with clear, plain-language definitions. If you have a question about your policy that is not covered in this section, we recommend contacting us for more information.
The amount of coverage you need in any life insurance policy can heavily depend on the financial needs of you and your family.
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First, consider what life insurance will cover in the event of your death. Most insurance policies will pay out the full amount necessary so long as the policy is still active. These payouts will cover financial factors such as funeral costs, debt, and income replacement.
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Funeral costs can range anywhere from $1,000 for a simple cremation to $20,000 for full funeral services. Most people opt for cremation services or a simple burial to provide enough benefit to the family to cover lost income.
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Any outstanding debt such as school loans, mortgage, or credit card debt will fall to the beneficiaries in the event of death. To prevent the financial burden, most people look for a life insurance policy that will cover their outstanding debt.
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Likewise, lost income is a significant factor in determining how much life insurance you need in any policy. You should look to replace your yearly income, adjusting some for inflation. This will help any dependent beneficiaries, such as the immediate family, cover typical living expenses for the year while they mourn, allowing them to find a way to get back on their feet financially.
