Just like other types of insurance, life insurance works by sharing the financial risk of policyholders amongst a large number of people who pay premiums into a pool. The reason for a pool system is to minimize the costs for those who suffer an unexpected event like death in the case of life insurance. Many of the policyholders may not have to submit a claim as they outlive their insurance coverage, but they can be secure in knowing that if they did die, their loved ones are financially protected. A great way to think about insurance is that you’re passing on the risk from your family to the insurance company if something happens.
At Hometown Life Insurance!
We are here to assist and educate you when it comes to life insurance. Without proper guidance, life insurance can be complicated and confusing, but our many educational resources are here to make it a little easier for you and your family.
Start the process by getting a quote where you will answer some quick and easy questions to help us find the life insurance solution you are looking for.
Once we find your ideal plan, we will let you know what you can expect to pay in monthly premiums. From there, use our online digital portal to complete the application process where you will have the full support of our team ready to assist you whenever you have questions.
The amount of life insurance that you require is as unique as you are. You can get an idea of the amount of coverage you require by using our life insurance needs calculator or you can contact one of our team members to assist you through the process. After completing the calculator or connecting with our team, you will be able to understand the level of coverage you require.
If you are young and single with no dependents, you might not need a large amount of insurance – but there are benefits to considering it now. If you expect to get married, have kids, buy a home or own a business, you should be considering life insurance.
Getting life insurance when you are young and healthy will result in lower premiums and also protect your insurability. That means that even if your health deteriorates to the point where you would no longer qualify for life insurance, you already have coverage in place to ensure your loved ones and your future are protected.
Life insurance has a number of advantages over mortgage insurance. One of the main benefits is that all of the underwriting is completed at time of application while mortgage insurance uses post claim underwriting.
With post claim underwriting, your health is investigated at time of death and may prevent the insurance from paying off your mortgage. In addition, mortgage insurance only covers the outstanding balance of your mortgage, so your coverage decreases as you pay down your mortgage – life insurance will maintain the same coverage and can also be used to cover other debts, replace income or any other needs you may have.
In most cases, term life insurance will also be less expensive than mortgage insurance in addition to being more flexible and robust in providing coverage for you and your loved ones.
Our team of licensed life insurance professionals are happy to assist you with any other questions you may have about your policy – or if you would like to review a current policy you own to better understand if you have the right coverage. Many people have life insurance coverage that fit their needs in the past, but haven’t updated it since a significant life event like getting married, having a child, getting a raise or promotion, or purchasing a house.
Ensuring your coverage is up to date is critically important for you and your loved ones.
Additional features on a life insurance policy are called “riders”. They can be useful in a variety of circumstances when clients have needs beyond just the basic coverage of the policy. Some of the most common riders on term insurance are:
Permanent insurance also includes each of the riders mentioned above, but can also include a term insurance rider where your permanent policy will also include a term component.
With life insurance, you can name beneficiaries on your policy so you can select who will receive the payout upon death as well as the amount they will receive.
With named beneficiaries, the payout will remain outside of your estate and therefore will avoid being charged probate and also remain private from the public record of your estate.
Life insurance provides a one-time tax-free payment to your beneficiaries to assist them in covering your final expenses, pay off your debts and ensure your income is replaced for your loved ones that rely on you.