There are many reasons to buy Florida life insurance, but the single most important one is so that there is some money to aid your family or other dependents in the event that you die unexpectedly.
If you’re still supporting kids, or if anyone else counts on you for some or all of their financial support, you need life insurance to replace your income when you’re gone.
But there are other reasons for buying life insurance, too. One of these is to cover burial expenses. Funerals aren’t cheap! Who’s going to pay the cost of the funeral and the many associated expenses that go with it (e.g. casket, clergyperson or other official, grave, burial, or cremation)?
Also, there are costs associated with probate of your will and administration of your estate. And if you died as the result of a medical event, or if you died as the result of an accident but received medical care for your injuries prior to your death, there may be medical costs above and beyond what your health insurance covers. There are also federal and state “death taxes” to pay.
Even if no one is dependent on you for financial support, a life insurance policy can create a nice nest egg for your children, your spouse or domestic partner, or anyone else you designate. It can also endow a charity.
Some life insurance polices have the added benefit that you can either withdraw the money outright or borrow against it while you are still alive. This may help you if you get into trouble financially, or if you need the money for some purpose such as college tuition for a child or to start a business for yourself.
If you are buying the policy to replace your income in order to help support a spouse, children, or other dependents, you want to buy enough to replace your current income. Many experts recommend you get a life insurance policy equal to 10 times your annual gross salary.
If you are buying the policy to cover funeral expenses, figure what current funeral expenses are and then adjust for inflation. You might not die for quite a few decades, and prices are sure to go up by then.
If you are buying the policy to endow a charity, figure out how much you want to give them.
You may already have a small life insurance policy through work, a club or association, a credit card, or some other source. This is sometimes a nice bonus, but is rarely enough to make the difference for your survivors.
And insurance from your job would disappear were you to switch jobs. That might happen five, ten or more years from now, when you’re older and life insurance is more expensive to acquire. So it makes sense to buy it now, even if you think you’re covered by life insurance from work.
You’ve probably heard of term and whole life insurance.
Florida term life insurance covers a specified term of time, typically somewhere between one year and 30 years. If you die during that period, the policy pays off. Subcategories are level term, which pays the same amount whether you die at the beginning of the coverage period or near the end of the term.
Decreasing term pays a lower amount if you die later into the coverage period than if you die earlier on. Most people who buy term insurance choose the level type.
Florida whole life insurance pays out no matter how long you’ve had the policy or how old you are when you die. Traditional whole life features a death benefit that doesn’t change, no matter how old you are or how long you’ve had the policy. Typically, the premiums won’t change either.
With an individual policy, you and you alone buy the policy and choose what company you are going to deal with, the specific plan from among all those that company offers, and the specific benefits and features.
With a group policy, you may get a lower premium, and there are few or no health questions to determine your eligibility. But you have to go along with the company and the plan that the group (your employer or some affinity group) chooses. Moreover, most group policies are term policies, which may not be what you want.
While death is not a pleasant thought, it’s a fact that we’re each going to die eventually. By having the foresight to buy life insurance, you can eliminate some of the stress from what will inevitably be a stress-filled time for your loved ones.
Claim your free Florida life insurance quote now!