We’re breaking down these concerns in a new series of blogs, explaining the life insurance process from start to finish so that you can fully understand how it works, how to get it, and why you want it.
Once you’ve completed your Financial Needs Analysis (which is the first and most important step) we will work with you to determine how much coverage you want and what type of coverage you want to invest in.
Make sure to read our post about it here if you haven’t already done so.
When it comes to the process of getting life insurance, at Crystal Metz Insurance Agency we always look at things from the “bigger” picture - focusing on what will fit your unique needs.
The Financial Needs Analysis provides a dollar amount on your coverage, however you may decide to adjust that based on your personal preferences or your budget - and that’s okay!
You may also decide to make adjustments based on any coverage you already have, or areas you may be lacking in.
Education is one of our top values at Crystal Metz Insurance Agency, so don’t be afraid to ask questions as we go through this together.
We will explain all of your options fully and clearly, but if you still don’t quite understand, please ask.
We are the experts and understand that this is something brand new for you - that’s why we ensure every client goes home with full knowledge of their coverage, to the point that they could easily explain it to someone else!
On a side note, never choose to work with an agent that makes you feel uncomfortable or foolish for asking questions about your own policy.
Alright, let's start with, what the heck is “Term” versus “Permanent” coverage anyway?
Permanent insurance policies are designed to meet your long term needs because the premium (monthly cost) and amount of insurance (total payout) are guaranteed.
This means that your premiums will never increase and your designated beneficiary will receive the total amount of insurance selected, guaranteed.
This is the type of policy you will want to set up so that your loved ones (friends, family, partner, etc.) are not left with any kind of financial burden or unexpected expenses.
Another option with Permanent coverage is that you can choose to pay off the premium sooner, but keep the same payout for the rest of your life.
For example, you can choose to have a higher payment, but pay your policy off much sooner, such as in 10 years, 20 years, or by the age of 65.
With this option, once your policy is paid off, you will remain covered for the rest of your life, with the exact same payout, but never have to pay another penny.
Permanent insurance is certainly a nice option if you want to be a little more stress-free later in life!
Term insurance is exactly how it sounds - a policy that will cover you for a particular length of time (aka term) such as for 10 years, 20 years or 30 years.
Term coverage is simple and affordable, and works best for covering the cost of debts and loans that will eventually be paid off such as student loans or a mortgage.
Term insurance is the perfect choice for covering existing loans and debts because you will still be working to pay them off and hopefully, by the time you policy renews, those loans are paid and you no longer need insurance for them.
For example, if you have a $300,000 mortgage over 25-years, you can invest in a policy that will cover you for $300,000 for 30 years.
That means no matter how much you pay off your mortgage, your loved ones are guaranteed to receive the full $300,000, and use the extra amount however they see fit.
Plus, once 30 years have passed, and your mortgage is paid off, you can adjust, cancel, or switch your policy to a Permanent one.
Remember, as life evolves and changes occur, so will your insurance needs.
We recommend that you stay in contact with us and keep us up-to-date with changes so that we can adjust your coverage to perfectly suit your situation and stage of life.