Your Best Source For Life Insurance Oregon
Purchasing Life Insurance and Planning Ahead
The most ideal time to buy Oregon Life Insurance is when you’re healthy because you’ll pay less! As the years pass, keep in mind that your rates will change, so even if you already have life insurance, you can get the same coverage, or even more coverage, for less money. Here are some factors to consider when you decide to purchase life insurance.
- Cost of medical expenses
- The age of your children
- Whether you are the sole source of income in your household
- The cost of funeral expenses
Planning ahead and searching for life insurance doesn’t have to be an unpleasant experience. In fact, it will be comforting to know that you have considered all the aspects of your life and you are ensuring that your loved ones will be taken care after you’re gone.
Life insurance is used to help a families, or even businesses, get through the rough times during the loss of a family member or business partner. These days many of us take life insurance for granted, but when we are faced with a tragedy, we see that we need it more than ever. In today’s world, life insurance should be one of the most important investments you make, not only for you, but also for your loved ones.
With our economy struggling, often both parents are forced to work just to make ends-meet. While most employers offer life insurance for their employees, payout for those policies is usually very low. This means your policy might not even cover expenses in the event of your death. Getting additional life insurance is the best way to make sure that your family is protected. Most people do not realize some of the expenses that can be associated with an untimely death. Such things as estate taxes, lawyer fees, and funeral expenses, on top of debt and mortgage payments need to be considered. Without life insurance you could put a large financial burden on your family that you really don’t want.
The Benefits of Having Life Insurance
You are probably asking yourself, how much life insurance do I need? This is the same question many people have, and the answer will always change depending on the person. While everyone’s situation is different, it is best to sit down with your agent and discuss what is best for your family. Keep in mind; it is better to have more coverage, than not enough. You can never predict when tragedy will strike, so be prepared.
No one wants to think about needing life insurance. In a perfect world, none of us would have to consider it. However, most families depend on you or your spouse, or both, so the best way to help them prepare for the worst is by having a life insurance policy that will keep them from having to struggle during the financially loss.
The D.I.M.E. Theory
Life insurance offers financial security during the worst of times. It can help to replace lost income, provide burial and estate expenses, and pay off debt such as a mortgage, car loans, medical expenses, college, and any other financial needs that your family might face.
Sit down with your spouse, or family, and think about this. How much do we owe on our home? How much is our credit card debt? Are we still paying on our vehicles? All these questions, and more, should be considered when purchasing life insurance. But, we have a way to make it simple! It’s what the Oregon life insurance industry refers to as, “The D.I.M.E. theory”. Here is an example of how it works.
- Debt – Do we have an account at the local hardware store? Do we still owe on our vehicles?
- Income – Income needed by the surviving spouse, annual income multiplied by 2.
- Mortgage – How much will be needed to pay of our home?
- Expenses – How much are funeral costs and estate taxes? How much will it cost to raise our kids and make sure they have enough for college?
In the old days a $100,000 life insurance policy was considered to be too much, but these days that might barely pay of your debt and part of your mortgage. Use this theory when purchasing life insurance to ensure your family is taken care of after you’re gone.
What Form of Life insurance do I need?
Now that you have figured out how much life insurance you need, it’s time to figure what form of life insurance you need. There are 4 main types of life insurance policies, Term Life, Whole Life, Variable Life, and Universal Life.
Term Life
This is considered temporary protection because it only provides coverage for the number of years specified in the policy. If the insured dies during this term, the policy pays the death benefit to the beneficiary. In addition, there is no cash value that can be withdrawn or borrowed against while the insured is still living. In other words, there is no “living benefits”.
Whole Life
This is referred to as permanent protection, since as long as the premium is paid coverage will continue for the life of the insured. Whole Life offers a level premium during the life of the contract or premium period, as well as a level death benefit for the life of the policy. The major benefit of Whole Life is that it accumulates cash value, which the policy holder can borrow against, or which the insured is entitled to in the event the policy is surrendered.
Variable Life Insurance
There are some unique components to selecting a Variable Oregon Life Insurance policy. This type of policy offers permanent coverage while also offering account flexibility for someone who will take higher risks pertaining to their finances. The benefit paid in the event of death is not a set amount, and the death benefit would vary depending on how well the money increased in value based upon the investments made. It is also important to remember that you can borrow money from this policy during your lifetime.
Universal Life
This offers an adjustable death benefit that can be increased or decreased depending on the needs of the policy owner. A major benefit of Universal Life is that the policy holder may skip payments of premiums and the policy will not lapse as long as there is sufficient cash value at the time to cover the monthly deductions for cost of insurance. Much like Whole Life, Universal Life accumulates cash value, which the policy holder can borrow against, or which the insured is entitled to in the event the policy is surrendered.