Studies suggest that approximately 1 in 3 American households would find it difficult to pay for living expenses if the primary wage earner were to suddenly pass away. Have you thought about your family’s financial well-being for the long term? Will they be secure after you have passed on?
Financial experts will advise you that life insurance is an integral part of financial planning. It can provide replacement income for your dependents, help cover funeral expenses and death taxes, and even create an inheritance for your heirs. Some cash-value policies can also create a source of savings which you borrow or withdraw.
Are you confused by all the different options available? If so, you’re not alone. Research shows that less than 50% of Americans have even the most basic knowledge on the subject. Established brokers are trained on the different insurance programs offered by various providers and can point you in the right direction.
What You Should Ask Your Life Insurance Broker
Here are 5 questions to ask your life insurance brokers in Mississippi so they can help you make the right decision.
1. How much do I need? Everyone’s situation is different, and the amount of coverage you need typically depends on what you are trying to accomplish. The general rule of thumb is 10 times your income, but this is dependent on your age. There are two important considerations for determining how much life insurance you may need—your financial liabilities (mortgage, car loan, and other outstanding debts), and income replacement. An experienced broker will evaluate your financial situation and future needs to help you decide the appropriate amount. You can use our Life Insurance Cost Estimate Work Sheet to help you get started.
2. What are my options? Term is typically less expensive and provides death benefits for the specified number of years—10, 20, 30, etc. Whole life insurance, on the other hand, provides a death benefit irrespective of how old you are, as long as you continue to pay the policy premiums. Universal life insurance is similar to whole life insurance in many ways but has greater flexibility. Read our overview of the different types of life insurance. Your insurance professional will explain the advantages of each and the options available in these categories.
3. What benefits does my policy provide? You should know the basics of your policy, including what your premiums will be. There are four aspects you want to clarify—control (who owns it), liquidity (how much money you can get out of it and how quickly), use and equity (what are the rules for borrowing and what the money can be used for). Read our white paper on managing your policy.
4. What if I cannot pay the premiums? Some policies have a grace period. Knowing your options in advance is critical, so you are better prepared in case you have financial troubles.
5. Who am I buying from? It is important to do some homework on the insurance broker as well as the provider. You need to know how long they have been in business and if they can provide references of existing or past customers. You can also research their online customer reviews or ratings to determine the quality of service.
Advice from an Established Mississippi Life Insurance Broker
Life insurance can be the cornerstone of your family’s financial stability and well-being. Navigating all your options, however, can be intimidating. You want to be sure that you are getting the right coverage.
At the Executive Planning Group (EPG), we combine our financial and insurance experience to provide you with cost-effective solutions that meet your unique needs. We offer life insurance programs for individuals and groups from reputable companies backed by our personalized support and seamless service. You can rely on our years of training to protect your family and keep your employees happy.
As an established life insurance broker in Mississippi, our team works hard to get you the best rates and coverage while providing you with a quick response. We also have extensive experience in underwriting, accounting, financial, and retirement planning.