Life Insurance Information
Life Insurance in Indiana
It may seem morbid to think about your death, but ensuring that your loved ones are financially cared for if something happens to you should be a priority. Taking out a life insurance policy can help you provide for your loved ones if you pass away. Despite its importance, life insurance can be a tricky topic to navigate.
If you’re considering purchasing a life insurance policy but don’t know where to start, rest assured that the agents at Gayda & Associates are here to help. Since 1997, we’ve been helping those in and around Northwest Indiana get the life insurance policies they need. Give us a call at 219-793-9900 to learn more or get a quote today.
Types of Life Insurance
Here’s an explanation of the main types of life insurance policies that may be available to you.
Term: This is the simplest and generally cheapest form of life insurance, and you buy this coverage for a specific period of time. It can usually be renewed, but premiums will increase based on age and health factors. There is no cash value.
Whole Life: You purchase this policy to cover your entire life, as long as you keep paying premiums. Premiums remain constant throughout the policy, and the company invests a portion of your premium that becomes the cash value. These are more expensive than term policies in the early years, but the premium does not increase.
Universal Life: This policy is similar to whole life but has the potential for higher earnings on the savings component. It is more flexible in terms of changing premiums and face value throughout the policy. There is usually a guaranteed return on the cash value. Disadvantages include higher fees and the possibility of increasing premiums.
Variable Life: A variable life policy generally has fixed premiums, and you have control over the investment decisions for the cash value portion. However, this is riskier because there is no guarantee for the cash value.
How Much Life Insurance Should You Buy?
How much life insurance you need will depend greatly on your circumstance. Based on an income replacement calculation, many people decide between five and 10 times the amount of their current income.
Think about your situation: Is yours the sole income in your household? Are there other expenses, such as college tuition, that may arise in the future? Don’t forget to include potential medical and funeral costs. Above everything, you want to ensure your family doesn’t have to worry about bills, debts or expenses they can’t afford.
Get a Policy Quote Today
If you’re ready to take the next step in preparing for your future, give the agents at Gayda & Associates a call at 219-793-9900 today.