Life insurance is an important investment and valuable part of your financial planning, no matter your age or financial situation. Most families do not have adequate savings to replace the income of a lost loved one. Life insurance is meant to provide financial security to your family in the event you were to pass away.
One reason people avoid life insurance is because they feel it is too expensive. It is important to consider life insurance while you are young and healthy. As you get older, premium rates increase. Purchasing a life insurance policy earlier in life can give you access to lower rates or higher levels of coverage. You can invest with confidence now, knowing that your policy is protected by the Alabama Life and Disability Insurance Guaranty Association. If the company that writes your life insurance policy goes out of business, your benefits are guaranteed.
Some individuals feel that the life insurance benefits they have through their employer are enough. It is recommended that you purchase a policy which will provide 8 to 10 times the breadwinner’s annual income. Employer-provided insurance may only offer up to a single year of income which is well below the recommended level of coverage.
There are a couple of common life insurance options available. These options are:
• Term Life Insurance – provides coverage for a specified period of time, usually 5-30 years. This is generally the most affordable option.
• Permanent Life Insurance – provides coverage for a lifetime, and may include an investment component. Typically more expensive than Term Life Insurance.
Permanent Life Insurance can include a number of options such as Whole Life, Universal Life, and Variable Life policies. One of our experts can explain the differences between each of the life insurance options to help you determine if one of these plans is the right choice for you.
When reviewing life insurance options, it is important to take into account medical expenses, burial costs, estate taxes, monthly bills and expenses, remaining mortgage, college tuition, and retirement costs. Always be sure to re-evaluate your life insurance plan after major life events such as the birth of a child, purchase of a home, or marriage.
Life insurance is an important investment that allows you to provide for your family, even after your passing. Make sure your family is adequately covered. For more information about life insurance options or to obtain a free quote, please call us at (205)-987-5911 or, you may use our Life Insurance Quote Tool to start the process.
The Collins Insurance Agency has been serving the Alabama community since 1953! We specialize in:
• Auto Insurance
• Homeowners Insurance
• Life Insurance
• Business Insurance
• Workers Compensation
• Umbrella Liability Insurance
• And Much More!
Contact us at (205)-987-5911 or stop by our office in Hoover to see how we can help you!