By Daniel Anderegg, CLU, ChFC, MSFS
The topic of fife insurance can sometimes be a confusing;however,it does play an important role in protecting your loved ones. The more you understand about life insurance: what it does, how it works, the more comfortable you can be in making the right decision about the kind and amount of life insurance you need. Here are four things you should know about life insurance.
1. Life insurance has been around for a very long time
An ancient Roman military leader, Caius Marius, created a burial club among his troops, so if a member of the club died the remaining members would pay for his funeral expenses. Western Fraternal Life was founded in 1897 using this very same concept. The ancient Roman’s also created the first annuity, known as annua, or "annual stipends" in Latin. Roman citizens would make a one-time payment to the annua, in exchange for lifetime payments made once a year.
2. You don’t need to take a medical examination to get coverage
Coverage amounts below $25,000 now do not need any medical exams, blood work or records from your doctor. Just a few yes/no answers to health questions can get you coverage with our new simplified issue products.
If you have some health issues, the graded benefit policy might be an option. The death benefit during the first two years for death caused by non accidental causes is a refund of premium plus 5% interest. The full death benefit is paid for deaths after the two - year period or by accidental death. Coverage is not guaranteed, approval is based on a few yes/no health questions.
3. Life insurance is cheaper than you think
A recent LIMRA* study shows that 80% of adults overestimate the cost of a 20-year, $250,000 term life insurance policy for a healthy, non-smoking 30-year-old by nearly three times the actual cost. The monthly cost of a Western Fraternal Life 20-year term life insurance policy is $20 per month for a male. A Female would pay $17.50 for the same policy, both assuming super preferred non-tobacco rates.
4. You probably need more life insurance
The same LIMRA*study also found that nearly a third of all consumers believe they need more life insurance coverage. This is especially true of women, younger adults and minorities.
· More than one in three women believes they do not have enough life insurance coverage,
· Survey respondents 25 and younger, 41 percent say they need more coverage.
· Consumers 25 to 44 — the prime insurance-buying years — 36 percent believe they need more life insurance.
· 42 percent of African Americans and 37 percent of Hispanics say they need more life insurance.
*LIMRA is an independent industry research organization, 2012 Insurance Barometer Study.
Life insurance doesn’t need to be complicated. Let Western Fraternal Life or one of our agents help you with your specific situation, contact Western Fraternal Life today. We want to make sure your insurance coverage matches your insurance needs at a price you can afford.
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Call 877-935-2467 to speak with a Western Fraternal Life Representative.