Life Insurance
Life insurance is a critical component of financial planning, providing a safety net for your loved ones and ensuring their financial security in the event of your passing.
At Lakenan, we understand the importance of life insurance in protecting your family’s future. Our experienced team is well-versed in the intricacies of life insurance, offering a comprehensive range of options tailored to your unique needs.
We recognize that every individual and family has different requirements, and our personalized approach begins with a thorough assessment of your financial goals, responsibilities, and aspirations. This in-depth analysis allows us to design life insurance solutions that align with your needs and provide the necessary protection.
Our life insurance offerings encompass several key areas:
- Universal Life Insurance: Provides flexible coverage and potential cash value accumulation, allowing you to adjust premiums and death benefits to accommodate changing financial circumstances.
- Final Expense Insurance: Designed to cover end-of-life expenses such as funeral costs, outstanding medical bills, and other financial obligations, easing the burden on your loved ones during a difficult time.
- Group Life Insurance: Offers life insurance coverage for a group of individuals, typically provided by an employer or organization as part of employee benefits.
- Individual Life Insurance: Personalized life insurance policies tailored to your specific needs, providing financial protection for your loved ones and ensuring their financial stability.
- Key Person (Key Men) Insurance: Protects businesses by providing coverage on key individuals whose absence or loss would significantly impact the company’s financial stability and operations.
- Long-Term Care Insurance: Offers coverage for the costs associated with long-term care services, such as nursing home care, in-home care, or assisted living facilities.
- Mortgage Protection Insurance: Ensures that your mortgage obligations are covered in the event of your passing, providing financial security for your family and allowing them to maintain their home.
- Second-To-Die Policy: Covers two individuals, usually spouses, and pays out the death benefit upon the passing of the second insured individual, providing estate liquidity and protecting heirs from estate taxes.
Common Life Insurance Questions
How Does Life Insurance Work?
You don’t want to leave your loved ones in a financial bind simply because you aren’t there to provide for them. Life insurance will ensure this doesn’t happen.
If you carry a life insurance policy on yourself, then you will designate a sum of money—a death benefit—that the insurance policy will provide to a designated beneficiary (usually a family member) upon your death. With access to life insurance funds, your family will be able to pick up the pieces of your loss and move on with their lives without facing monetary troubles.
What is Whole Life Insurance vs. Term Life Insurance?
You don’t want to leave your loved ones in a financial bind simply because you aren’t there to provide for them. Life insurance will ensure this doesn’t happen.
There are two primary types of life insurance:
- Term Life Insurance: A term life policy provides a death benefit to your loved ones if you die during the policy’s term. This term might be a period of 10, 20, 30 or more years, depending on the expiration date of the policy. If you do not die during this time, then the policy does not pay. You will also have to reapply for a new policy if you want to continue to have coverage.
- Whole Life Insurance: Whole life policies last for the remainder of your life once you enroll. They will not expire unless you stop paying for them. Additionally, these plans offer cash value investment opportunities, and the cash value component can enable you to receive a source of income during your lifetime (in addition to the eventual death benefit).
Several more specific policies also exist, including:
- Universal Life Insurance
- Final Expense Insurance
- Group Life Insurance
- Individual Life Insurance
- Key Person (Key Men) Insurance
- Long-Term Care Insurance
- Mortgage Protection Insurance
- Second-To-Die Policy
Speak to one of our agents to learn more about which type of policy is best for your needs.
How Much Life Insurance Do I Need?
The amount of life insurance you need is entirely up to you. For example:
- If you want a policy to help pay for a child’s college education, then a 20-year term policy might be best for you. You can let the policy terminate at the end of the term, but you can rest assured that if you do die before your child graduates college, this policy will pay for their tuition and other expenses.
- Many people tie the value of their life insurance policies to the value of their debts—mortgages, car payments, etc. If you die while these debts are outstanding, then your beneficiary can use the money to settle expenses.
- Some people tie the benefit to their income and leave a certain number of years’ worth of their paycheck to their survivors. So, if you were to take your current paycheck and multiply it by ten, then your death benefit will provide ten years’ worth of income to your family.
All in all, you are free to choose a death benefit that is as big or as small as you like. Our agents are committed to helping you find the perfect amount of coverage for you.
How Much Does Life Insurance Cost?
Life insurance premiums vary based on multiple risk factors like your age, income, chosen coverage limits and other demographic factors.
Many people worry that they won’t be able to afford life insurance because they have a pre-existing condition or because they work in a high-risk occupation. This is not a mindset that we take when working with our customers. Our priority is to make life insurance affordable and attainable for everyone, no matter where they are in their life.
Contact us at 314-721-1500 or click here to start a conversation.