Life insurance is important, as it protects your family and lets you leave them a non-taxable amount at the time of death. It is also used to cover your mortgage and your personal loans, such as your car loan. Your individual life insurance follows you when you retire and you are no longer insured by your employer. This insurance will also replace your family income when resources are less so they can maintain their quality of life.
So how is Affiliated different?
Life insurance is sold by agents. Most agents earn a commission on the policies they sell. The amount of the commission they get is based on the premium charged for the policy they sell. The higher the premium, the higher the commission. And some types of policies earn higher rates of commission than others because some are more profitable for the insurance company. That gives many insurance agents an incentive to sell you the policy that earns them the highest commission, not that best suits you.
Affiliated Insurance is different. Our primary business is home, business and car insurance, so we are not relying on commissions from life insurance sales to make our living. Because of this, our life insurance salespeople are paid a salary, not commission. That allows them to make sure they get you the right insurance for your individual needs, even if it is the least expensive option.
Choosing life insurance
Once you understand the importance of taking out a life insurance policy, you need to make the right choice. To do this, you need to ask yourself about your needs and purchase a product that works for your family and insurance premiums that fit your budget. We will help guide you through the process so you are buying the right policy.
There are three main questions to figure out what type of life insurance would work best in your situation.
- Family and work situation
First of all, your insurance needs will be influenced by the following: your family situation, your age, your health situation and whether you are an owner or self-employed.
Life insurance is important, whether you are single or in a relationship. In the event of your death, your loved ones will have to pay your funeral expenses and pay off any financial liabilities you have, such as your debts. If you have insurance coverage, your debts will not be a burden for your family members.
In addition, your loved ones may also have to bear some of your shared responsibilities, such as your credit card fees, your lease, your car payment, your mortgage payment, your student debt, or other. If you have children, life insurance will let you replace the lost income from one of the parents to provide for the children’s needs.
Life insurance is also an effective financial tool for protecting your business. It lets you ensure you and your loved ones’ financial security should something bad happen.
If you start your own business with a partner who passes away prematurely, will you have the funds needed to buy out his/her shares and continue moving forward with your dream? An unfortunate event like this could have a major impact on your company. So you need to start thinking about it now. If you don’t have coverage, getting a policy will let you cover your needs as a self-employed person and will avoid future concerns for your family.
- Life goals
Your personal, family and professional goals will also determine your choice of life insurance. For example, do you plan on having children? What are your career and income goals? At what age would you like to retire?
This will help you evaluate how much life insurance you should take out to protect your loved ones in the event of death.
- Coverage type
You have thought about your situation and life goals. Now all you need to do is figure out what type of life insurance is best for you.
For example, you might ask yourself if you need short-term or long-term coverage. Do you want coverage that generates liquidity and surrender value that you can use to reach your goals, etc.?
Once we help you understand and answer these questions, we will be able to help you choose the life insurance that works best for you.
The important thing is to choose the right life insurance for your budget and your needs. Over the years, your needs, your family situation and your life goals will evolve. When that happens, it will be time for you to re-evaluate the right type of insurance for you to ensure you are covered properly.
Remember that you are never too young to buy life insurance, since the younger you are, the lower the cost of your premium. Your financial security advisor is there to provide some guidance in this process, based on your reality and your goals.
If you would like a quick life insurance quote today, click below!