
Most Americans agree that life insurance is important, but only a small majority actually have coverage. Of those who do, many have too little protection to safeguard dependents and loved ones against the financial burden of loss. With the right policy, you can find confidence in your ability to provide long-lasting security in the event of your loss. At Henricks – Wilging Insurance, we know how to match clients with policies that offer comprehensive life insurance coverage. From death benefits and beneficiaries to terms and cash valuations, we can help you sort through the many components of Wisconsin life insurance policies to better understand which coverage options may be right for you.
Who Needs Life Insurance?
We insure things that have value. Much like unexpected damages to a home, car, or a person’s health can yield financial devastation, the loss of a loved one can create tremendous burdens for survivors, whether due to debts and final expenses or a loss of household income. If you provide financial support to another person in any way, chances are you need life insurance.
Beneficiaries can use the tax-free benefits of a life insurance policy in many different ways. You can purchase life insurance to:
- Support a surviving spouse
- Replace lost household income
- Fund a child’s college education
- Establish a trust or inheritance for your children
- Pay off outstanding debts, such as a mortgage
- Cover the cost of a funeral service and burial
- Leave a charitable legacy
- Pay for domestic services after the loss of a homemaker/caretaker
- Protect financial interests in a business partnership
- And more
When is the Right Time to Purchase Life Insurance?
Life insurance is generally better purchased sooner than later due to unknown variables that could affect coverage cost and eligibility in the future. If you are diagnosed with an illness or experience an adverse health event, for example, your premiums could be higher than they would have been if you had applied for coverage prior to the onset of your condition. Typically, the younger and healthier you are when applying for life insurance, the lower your premiums will be. Furthermore, many life insurance policies offer level premiums, meaning your rates will not rise despite changes in your age or health over time.
Why Purchase Private Life Insurance Coverage?
If you work for an employer, you may have access to a company life insurance plan. This coverage, although valuable, is no replacement for a private policy. Generally, the benefits are too low to meet then needs of loved ones, and the coverage may also be contingent upon your employment. What happens if you decide to change jobs or suffer a lay-off? Worse, how would you protect your family if you were no longer eligible or otherwise could not affordable a life insurance policy on the private market due to changes in your age and health?
Don’t risk having too little or no coverage when you need it most. Even if you have coverage through your job, contact Henricks Wilging Insurance for more information about private life insurance protection and how you can use it to protect your family for life.
Types of Life Insurance Coverage
Most insurance policies are classified as either term or permanent coverage. Some life insurance applicants choose one or the other depending on coverage goals, whereas others opt for both types of coverage to meet short-term and long-term needs.
Term Life Insurance
A term life insurance policy usually offers affordable rates for high-value death benefits. Often, policy-holders qualify for hundreds of thousands of dollars of coverage or more – all at a rate that easily fits into most household budgets. Term life insurance can provide financial security during a policyholder’s working years when financial dependents are more likely to be adversely affected by an unexpected loss. Usually, term life insurance provides coverage for 10, 20, or even 30 years, after which time the policy and coverage may expire. This is often enough time to raise children to adulthood, build up savings and retirement funds, and pay off household debts and mortgages, effectively eliminating the need for extremely high death benefits.
Permanent Life Insurance
Like term coverage, permanent life insurance offers a death benefit for surviving beneficiaries following the death of the insured. However, these policies also have two major benefits not available from term life insurance. The first is insurance protection that lasts for life, never expiring or changing. So long as you continue paying premiums, the coverage remains intact – even despite changes in health or age. The second advantage is a cash value accumulation that provides living benefits for policy-holders. Depending on the terms of the policy, you may be able to cash-out or even borrow against the value growth in your policy, giving it financial value beyond the death benefit.
There are two primary types of permanent life insurance. The first – whole life insurance – features level premiums for the life of the policy. You continue paying the same premiums, and the death benefit remains intact. The second – universal life insurance – offers the same life-long security with the addition of an investment component and other variable factors. Over time, cash can build in a universal life insurance policy, eventually generating enough value to cover part or all of the premiums due. Many people choose universal life coverage due to its versatility and ability to generate significant value and investment potential over time.
Elkhorn Life Insurance Quotes
If you live in the greater Elkhorn area, we want to help you build a life insurance policy that fits your needs and preferences. For more information about term and permanent life insurance options in Wisconsin, contact our office today. We look forward to serving you soon.