Category Archives: Life Insurance

Life Insurance – What Do You Need? How to Know

Dime

Life Insurance – How do you know what you need?

While life insurance is not fun, it may be necessary for the good of your family. One popular simple guide to help you decide how much life insurance you need uses the acronym “DIME”. Add these four categories together to help you determine the total amount of life insurance right for your family.

D – Debt   How much debt do you have? The amount you owe is passed on to your family.  This amount should also include funeral expenses as well as credit card, car payments and student loans

I – Income  One of the main purposes of life insurance is to provide your family with income. Many people multiply their yearly income by the number of years until their youngest child is 18.

M – Mortgage   The remaining balance of your mortgage loan should be included to make sure your family does not  face the hardship of losing their home.

E – Education   If you have children, include the cost for their college education. Figure a minimum of $100,000 for a four  year degree for a state school for tuition and dorm fees. The cost will be more if you are considering private or out-of-state schools.

There are a number of options for the type of Life insurance that best fits your needs. Two of the most popular are:

Term Life Insurance  Term life insurance covers you for a specific period of time, or term, that you choose. When the time period is over, it expires similar to an auto insurance policy. This can provide an inexpensive way to protect your beneficiaries.  Variations include guaranteed renewal plans or options to convert to another type of policy. It’s important to remember that rates generally increase along with the insured’s age.

Permanent Life Insurance  These policies provide a lifetime of coverage and build up cash value that remains available to the policyholder. Permanent policies include Universal and Whole Life Insurance. This is the most cost effective long-term option because of stable premiums and the availability to access money invested in the policy.

Many people benefit from a combination of Term Insurance to cover higher debt when they are young and Permanent Insurance to keep rates low with age. Contact the experts at Cobb-Hall Insurance to assist you with your decisions.

Consider Life Insurance Young – Here are the Reasons

Woman enjoying the weekend in the shopping mallReasons the young should consider Life Insurance

Insurance requires proactive planning rather than a reactive mindset.  Many people do not consider life insurance until they are older with larger financial obligations. While true that it becomes most necessary then, there are huge advantages for those who consider life insurance young.

A few facts to consider are:

Insurability Young and healthy is always the best time to buy insurance. Serious illness and increasing age are factors that can make insurance unavailable or cost-prohibitive. Permanent policies do not expire and Term policies can be purchased with options that guarantee renewal for decades.

Insurance As devastating as it is when someone young dies, life insurance can remove additional financial burdens that add stress to already grieving family members. Financial obligations can include funeral expenses, medical costs and student loans.

Cost The younger the age of the insured, the lower the price. This can be true for decades in the future and, depending on the option you choose, even for life

Cash Value Not knowing the future can prevent people from making decisions. Some policies, in addition to providing traditional life insurance benefits, build up cash value that remains available to the policy purchaser. In addition, money invested and future death benefits may serve as funds to borrow against in times of financial hardship.

Let the experienced professionals at Cobb-Hall assist you with your insurance decisions.

Buy-Sell Planning Using Life Insurance

Plan Ahead with a Buy-Sell Agreement

Continuation of your business, the way you choose, is possible.  Many times, when partners go intoHelp business, the do no consider how to arrange for a smooth transition if one of the partners leaves the business retires or becomes unable to work.

Buy-Sell Planning can help you:

  • Be assured your family and partners’ families will be taken care of
  • Reassure your employees of a smooth transition.
  • Know the deceased partner’s share of the business will not be left to someone incapable of running the business.

Buy-Sell planning using life insurance is designed to address the concerns of business owners and their families. Here are only a few of the benefits:

  • It prevents a situation where the surviving spouse or other beneficiary of the estate gains control of the deceased’s interest without wanting it, or without having the business skill to manage it.
  • It provides cash for the spouse or estate of the deceased owner to make up for lost income from the business.
  • It makes it less likely that the business will have to be sold to “buy out” the interest of the deceased owner.

Business owners typically fund buy-sell agreements by purchasing a life insurance policy on each owner. Depending on how the agreement is drawn, the other owners can be the beneficiaries, in which case they will have the funds to meet their obligations under the contract. In other cases, the company itself is the beneficiary, to provide funds to buy back the interest of the deceased owner.

Buy-sell agreements can also be triggered by disability, retirement or simply by one owner wishing to leave.

Contact the experts at Cobb-Hall to provide innovative solutions designed specifically for your needs.

Sited: Trusted Choice-Independent Insurance Agents 2017

 

Key-Person Insurance

Key Person Insurance Can Prevent Financial Disaster

The financial effect of losing an important member of your business can be extreme. If your company business travellers walking in airport with luggagelost key people because of injury, disability or death, there’s a chance that the company could close it’s doors for good.  Investing in key- person insurance can keep your company from financial ruin if that employee was suddenly unable to continue to work.

Key-Person Insurance provides specific monetary value, agreed upon when the policy is purchased, for a specific time period or until the employee is no longer in the capacity of a key person.

 In the event a key employee dies suddenly or is incapacitated and unable to do their job, this coverage can protect your company, the employee and the employee’s family by providing:

  •  financial support while the person is recovering from an illness or injury
  • closing costs, investor payoffs, and severance pay for employees if your business plans to shut it’s doors after the loss of a key person
  • cover costs for temporary staff
  • hire and train a replacements
  • make up for a temporary loss of profits

Contact the experts at Cobb-Hall Insurance for innovative solutions to your business needs.

 Excerpts from 2017 Consumer Agent Portal LLC, All rights reserved 

Cobb-Hall Insurance: Agency of the Year Award

Cobb-Hall Insurance is honored to be named Agency of the Year by National Underwriter Magazine.  Click link to read full article.    Cobb-Hall Insurance Agency of the Year

Life Insurance Decision Guide

Life Insurance – How to Decide

Many people don’t know where they are going or how to get there when discussing life insurance.  yogi berra The following information can help you make decisions.

Basic Life Insurance Information

Whether you are married or single, a death can create financial hardship. Remember to consider expenses such as childcare, college, funeral expenses, and mortgage when determining your needs.

There are two basic types of life insurance: term life insurance and permanent life insurance. The type of life insurance policy that best suits you will depend on your unique needs.

Option #1: Term Life Insurance

Just as its name implies, term life insurance covers you for a specific period of time, or term, that you choose. Since it offers a death benefit but no cash value, term life insurance is an inexpensive way to protect your beneficiaries for a specified period of time.

Renewal term life insurance can be renewed at the end of the term, at the option of the policyholder for a limited number of successive terms. It can also be converted, or exchanged for a permanent insurance policy, down the road. It’s important to note that rates generally increase along with the insured’s age.

Option #2: Whole Life Insurance

Permanent life insurance is any form of life insurance other than term. Examples are whole life, universal life and variable life. These policies combine term life insurance with a long-term, tax-sheltered savings plan.

Whole life is the most basic type of permanent life insurance. It provides coverage that lasts a lifetime and builds up a cash value that you can borrow against, withdraw or use to pay future premiums.

A life insurance policy with a cash value is ideal for those who have a lifetime need for insurance protection, prefer stable premiums over the life of the policy, want a policy that allows them to build tax-deferred values, and value the high degree of coverage the policy affords. While rates for a whole life insurance policy remain stable over the life of the policy, premiums are initially more costly than for term insurance.

How Much Insurance Do I Need?

To find the right amount of coverage, it’s important to consider your dependents’ current lifestyle and needs against future sources of income and assets.

Contact the caring experts at Cobb-Hall Insurance for more details.