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Life Insurance

Buying life insurance is one of the most selfless things a person can do in his or her lifetime. Life insurance allows families to continue living without the additional mental and emotional strain of financial difficulties after the loss of a loved one.

Think back to the last time you heard of a person unexpectedly dying. Did he or she have a family? Were the children taken care of? Was life a struggle? Hopefully, you are picturing an experience where the family was able to grieve their personal loss without worrying about final expenses or even the family expenses moving forward.

LIMRA, a leading insurance and financial services trade organization, found that the three biggest reasons for owning life insurance are to:

  • help cover burial expenses
  • replace lost income
  • pay off the mortgage

Notice that none of these expenses truly benefit the deceased individual. After death, he or she is no longer responsible for paying for a funeral, bringing home a paycheck, paying off the mortgage, helping with college tuition, buying groceries and dealing with numerous other household expenses. Securing life insurance will never directly result in a payoff for the individual who is insured.

The payoff is in knowing that the ones you leave behind will not have to panic over finances.

Buying life insurance provides peace of mind and has the potential to secure a family financially for years into the future. It is a way to be present in a loved one’s mind and life long after you’re gone.

There are many different types of life insurance policies available but they generally fall into two categories: Term Life Insurance and Permanent Life Insurance.

The most popular type of life insurance is Term Life Insurance. This type of policy will normally have a set premium that will pay a benefit over the course of the policy. Term Life Insurance policies are meant to be temporary; however, most policies will provide the insured an opportunity to convert Term insurance to a permanent policy should the need arise.

In contrast, Permanent Life insurance provides lifelong protection.  These policies offer cash value accumulation and a death benefit as long as you pay the premiums and there are no loans, withdrawals or surrender taken.

Life Insurance has a wide array of Riders that can expand your benefit.  Below are a few to think about:

Accelerated Death Benefit Rider

Provides advanced partial payment of death benefit if insured is diagnosed with a terminal illness that will result in death in less than 12 months

Accidental Death Benefit

Pays an additional benefit amount for deaths that result from an accident

Children’s Term Rider

Term insurance for primary insured’s present or future children who qualify for coverage. Covers any child, step-child or legally adopted child until the policy anniversary nearest each child’s 25th birthday. Benefit limited to 50 percent if covered child dies on or prior to first birthday

Disability Waiver of Premium Rider

After four consecutive months of total disability, this benefit waives the premium during the total disability of the primary insured

Insured Insurability Rider

Guarantees option to purchase additional amounts of insurance on future option dates without providing evidence of insurability

Allied Insurance Managers, INC.