Life Insurance for your Family
Protect your family with Life Insurance
We believe every family should have life insurance. At Cheri Nelson Insurance Agency, we offer Term, Universal, and Whole Life Insurance policies. When the policyholder dies, it ensures a death benefit or money to your family to help pay for any expenses in the upcoming future. Families are often using the sum of money (death benefit) as income protection, college for kids, paying the mortgage off, any outstanding loans, etc. Some policies may include living benefits, which allows you to use a portion of the death benefit amount to pay for terminal illnesses, debt, and more. Learn more about the different types of life insurance below.
How are life insurance rates determined?
Life insurance costs are based on a few things:
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Health
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Age
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Smoker/Non Smoker
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Term or Whole Life
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Death Benefit Amount
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and more!
According to Policy Genius, you should multiply your income by ten to fifteen times to get the appropriate amount for income protection
Protect your family against financial hardships.
Types of Life Insurance
Term Life Insurance
Term Life Insurance guarantees a sum of money (death benefit) if the insured dies within the policy terms. You may choose whom the money goes to (beneficiary) and the length of the life insurance term. Common life insurance terms are 10, 20, 30 years. If you own a property or have kids, term life insurance could be the right policy for your family. Take into consideration if you outlive your policy, you may have to reapply for a new life insurance policy, which will increase because of age and health.
Whole Life Insurance
Whole Life insurance is a permanent policy that stays in force throughout the insured lifetime until he/she passes away or stops paying the premium. Whole life builds cash value that grows on a tax-deferred basis and can be borrowed if needed. The benefit of Whole life is the premium is locked in for a lifetime, meaning you pay the same premium every year. At the end of Term Life, if the insured is still alive the cost may increase due to age and possibly health.
Universal Life Insurance
Universal life insurance is a flexible form of whole life. Universal still acts as a permanent life insurance policy, but with more options such as increasing death benefits and altering premium payments. This protects your family from financial troubles by having the cash value pay for the premium until exhausted. For Whole and Universal life, the death benefit is separate from the cash value account. The cash value is available to you by taking a loan against it
Term vs. Permanent (Whole/Universal)
Life Insurance Premiums (Term vs. Whole/Universal)
The cost of term life insurance is less than whole life insurance because you are only covered for the term. Term life only covers 10, 20, 30-year terms depending on which coverage option you choose for your family. You may choose your coverage amount between $20,000 and $1 million. There are three different kinds of term insurance: Level term, Yearly renewable term (YRT), or Decreasing term. Read more on the different types of term life insurance.
With whole life insurance, you have the ability to pay the same premium every year and not have to worry about your premium increasing. According to III, universal life insurance gives your family the option to alter the premium payments depending on your situation. Both whole and universal life cover you until you reach 100 years old. Learn more about whole and universal life insurance.
Coverage Details for Life Insurance
When it comes to term life insurance, you may choose the amount of death benefit you want for your beneficiary. The higher death benefit amount results in a higher premium. You should determine the amount of life insurance you need by estimating how much your dependents need, says Investopedia. By adding the amount of debt your family has and multiplying your income by six to ten times, the total should be a comfortable amount for your beneficiary/beneficiaries.
Whole life insurance death benefit typically stays constant throughout your lifetime along with the premium. You may choose the beneficiary. Also, you have the ability to add multiple beneficiaries to split the death benefit. Universal life gives you the option to increase your death benefit amount depending on your health.