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In the event of a tragedy, life insurance proceeds can

 

 

  • Pay for funeral costs
  • Help pay the bills and meet ongoing living expenses
  • Pay off outstanding debt, including credit cards and the mortgage
  • Continue a family business
  • Finance future needs like your children’s education
  • Protect a spouse’s retirement plans

Palmdale Insurance Professionals is a leader in providing quality protection for hundreds of individuals, families throughout our state. Providing superior customer service and low rates along with our ability to understand our customer’s coverage needs drives the success of our agency.

 We take the mystery out of insurance and help you make sense of it so you can look forward to a brighter, more secure future. To do this we evaluate your specific needs, find the company that will give you the best value for your dollar while supplying a superior standard of protection.

 

What do love and life insurance have in common?

 

More than you might realize. The main reason you buy life insurance is because you love someone. Think of it as the ultimate act of selfless love. These videos drives home this very powerful concept. No one really wants to think about life insurance. But if someone depends on you financially, it’s a topic you can’t avoid.

 

 The companies we represent offer tested, reliable insurance products and excellent customer service. We make sure that the insurance companies that we represent have an outstanding reputation for fast, fair claims service. We hope you will benefit from our website and can take advantage of our experience in serving you for all your insurance needs. We encourage you to contact us with any questions or concerns.

 

 

Life Insurance Video

The different types of Insurance

Final Expense Insurance

 

Protect your family from the burden of an expensive funeral. Speak with our burial insurance specialists to learn more about your options today. 

 

 

What is Final Expense Insurance?

Final expense insurance is an insurance policy used to pay for burial expenses and funeral services when the named insured dies. 

Such a policy helps ease the financial burden placed on a family when a loved one dies.

 

More About Final Expense Coverage

 

Final Expense insurance is a basic issue life insurance policy that covers people until they reach 100 years old. It is quite similar to universal life insurance and is sometimes referred to as graded life or burial insurance with easy issue permanent coverage. 

As an inexpensive insurance choice, final expense coverage can be used to cover the funeral and burial costs of the policyholder. Most people who do not want to place a hardship or burden their families with these burial and funeral costs will take out burial insurance policies. 

Burial premiums can begin with higher costs at first than other forms of insurance since they include cash value features. An important advantage of burial premiums is that they are fixed, which means they remain the same even if your health deteriorates.

Final Expense coverage can pay for the casket, funeral service, visitation/viewing, hearse, digging and filling the grave, the actual cemetery plot, or burial vault or grave liner, minister, headstone, flowers, and other expenses related directly to named insured’s funeral. 

Contact us to learn more about the right final expense coverage for you.

 

 Disability Insurance?

You know more than 1 in 4 people today will become disabled at some point before retirement? It only takes a few minutes to find out how we can protect your future. What is Disability Insurance?

Disability Insurance often called DI or disability income insurance, or income protection is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. 

For example, the worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD).

Statistics show that in the US a disabling accident occurs on average once every second. In fact, Nearly 18.5% of Americans are currently living with a Disability, and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retirement.

 

Types of Disability Insurance

Individual Disability Insurance – Those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase policies. Premiums and available benefits for individual coverage vary considerably between companies, occupations, states, and countries. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim. Premiums also tend to be higher for policies that define disability in broader terms, meaning the policy would pay benefits in a wider variety of circumstances.

High-limit Disability Insurance – High-limit disability insurance is designed to keep individual disability benefits at 65% of income regardless of income level. Coverage is typically issued supplemental to standard coverage. With high-limit disability insurance, benefits can be anywhere from an additional $2,000 to $100,000 per month. Single policy issue and participation (individual or group long-term disability) coverage have gone up to $30,000 with some companies.

Key-person Disability Insurance –  Key Person Disability Insurance provides benefits to protect a company from financial hardship that may result from the loss of a key employee due to disability. The company can use the benefits to hire a temporary employee should the disabled employee’s disability appear to be short-term. In the case of permanent disability, benefits are used to help defray costs related to hiring a replacement, including recruitment, training, startup, loss of revenue and unfunded salary continuation costs.

Business Overhead Expense Disability Insurance – Business Overhead Expense (BOE) coverage reimburses a business for overhead expenses should the owner experience a disability. Eligible benefits include rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

 

Term Life Insurance Defined

Term life insurance is a temporary life insurance solution that provides life insurance at a fixed rate over a specific length of time. Common terms for term life are 5, 10, or 20 years, although other options are possible. The longer the term, the more expensive the policy may become since it covers a longer time span, so the risk of the insured dying during the term will increase.

 

Term life insurance only provides a death benefit and has no cash value.

Life insurance takes into consideration the age at the time of purchasing the policy, so the younger you are when you buy term life, the less expensive it will be.

 

Why Is Term Life Insurance Less Expensive?

Term life insurance is a less expensive life insurance option and a good choice when you are on a budget because it is temporary and only pays a death benefit to beneficiaries of the policy if the insured dies during the limited term of the policy.

The risk is far less than whole life insurance or universal life policies, and therefore term life insurance is the least expensive option in the life insurance product line. Unlike whole life and universal life products, there are no cash values in the policy, so the premiums are purely for the life insurance death benefit, which also keeps the cost down. Term life is a no-frills option that takes care of the basics: providing the money to your dependents in the event of your sudden death. Most people view it as an affordable and immediate life insurance option.

 

Term Life Insurance May Be More Affordable Than You Think

According to the 2015 Insurance Barometer Study, 80 percent of consumers misjudge the price for term life insurance. Millennials overestimate the cost by 213%, and Gen X overestimate the cost by 119%.

 

What Happens After Term Life Insurance Expires?

 Once the term of the policy expires, you may not be able to purchase a new term life insurance policy at the lower rate you had become accustomed to because the new policy would be based on your age. The older you are the more expensive life insurance becomes. If you become sick and your term life insurance expires you might have trouble getting a new term live insurance policy.

To avoid problems, consider the idea of adding an endorsement to your term life insurance policy that allows you to convert it to a whole life policy at the end of the term, or get a renewable policy. Your life insurance adviser should review these options with you.

 

Convertible and Renewable Term Life Insurance

Renewable and convertible term insurance can help you avoid finding yourself in a position where you are uninsured or uninsurable. For example, if you want a 10-year low-cost term life insurance policy and at the end of the term you would like to “convert” to a different term life insurance policy such as a cash-value policy without taking another medical exam,  you could choose a level term convertible life insurance policy.

 

Term Life Insurance and the Contestable Period

Choosing a renewable or convertible life insurance policy may also protect you from the contestable period in life insurance, which allows payment of the death benefit to potentially be investigated and denied during the contestability period.

The contestability period usually lasts two years from the date of a new policy. If your intention is to maintain life insurance beyond the initial term, you should ask your agent about this.

 

Deciding If a Term Life Insurance Policy Is for You

Term life insurance does not build cash value or have the tax benefits like universal life insurance or whole life, but it can be a great option for someone who would like life insurance, but can’t afford the higher premiums.

 

Here is a checklist to help you decide

if a low-cost term life insurance policy is right for you:

  1. You’re on a budget and cannot afford a very high premium.
  2. You are young and in good health.
  3. You are looking for a simple, straight-forward, low-cost life insurance plan to protect your beneficiaries.
  4. You are middle aged and do not require long-term life insurance, but only want to purchase coverage as a result of a temporary situation, or to serve a specific time span.
  5. You want to supplement your existing life insurance with a secondary policy for a limited time.

Annual Renewable Term Life Insurance vs. Level Premium Term Life Insurance

You can have two different types of term life insurance:

 

Annual Renewable Term Life Insurance gives the policyholder term life insurance for a year at a time and renews annually. The premium rises as you age, so buying an annual renewable term policy isn’t the choice that most people go with. When thinking about life insurance, you would normally be thinking more than one year at a time. A policy like this would usually be used as part of a greater overall strategy.

 

Level Premium Life Insurance gives the policyholder the advantage of a fixed cost over a specified length of time. The annual premium you pay is guaranteed not to change during the course of your policy term, whether it is 5 year, 10, 20 or up to 30 years. With a level premium term life insurance policy you are locking in the rate and will not have any surprises, or rate adjustments while the policy is in effect.

 

Talking to Your Insurance Agent About a Term Life Insurance Policy

Whenever you are looking at purchasing an insurance policy make sure and let the agent know exactly what you are trying to accomplish, and where you are at in life. Life insurance is part of financial planning and the better your representative understands your current lifestyle and long-term goals, the better the advice they can give you. If you do not feel really comfortable with your representative, find someone else who you feel at ease with. 

 

Want to build cash value and have lifelong coverage? Check out whole life insurance: Whole Life Insurance Policy Choices

 

Whole life insurance policies offer additional benefits besides just a death benefit. Whole life policies offer living benefits, including tax-free dividends that may accrue (referred to as the policy’s cash value); you may even be able to borrow money against the value of a whole life policy if there comes a time that you decide you need to do so. Whole life policies can be selected as part of your overall financial plan, but because you are not only paying for the life insurance premium in a whole life policy, but are also paying for a “savings” element, the cost will be more. This is a more expensive policy because you are building a life insurance policy with values in it.

 

Universal Life Insurance Definition

Universal life insurance (UL) is a hybrid life insurance policy which combines elements of term life insurance with an investment savings option. Universal life combines the ability to build savings at the same time as providing you a life insurance policy. This allows flexibility in what you can do with the savings or investment portion of the premium. Universal life insurance also contains an element of long-term investment strategy because it required you build the values in the investment portion through part of the amount you pay monthly.

 

Universal Life Insurance Options: Indexed Universal Life Insurance (IUL) vs UL

The success of a universal life insurance plan depends greatly on the investments in the plan you choose and market performance. In past years, there were concerns with the values in the investment portion of Universal Life Insurance because of unstable markets. As a result, indexed universal life insurance (IUL) evolved to address concerns with changing markets and some of the problems faced in the past by those who had purchased universal life in the past few decades. When considering universal life insurance, IUL seems to provide more safety than UL. It would be important to ask your financial planner about these options and see how they fit your needs and long-term strategy.

 

How Does Universal Life Insurance Work?

 

A portion of the universal life insurance monthly premium is put into the cost of the life policy which will provide the death benefit to your beneficiary and another portion of the premium is invested so it can be used as investment savings. The concept is that the investment will grow over time and eventually may even be able to pay for the premiums of the life portion of the policy. The advantage in this situation would be that you could pay into for a certain number of years and the investments would eventually start to cover the cost of the premium, then you end up getting life insurance for whole life, yet don’t need to keep making those payments.

 

Term Life Insurance vs. Whole Life Insurance Policy

The most common and affordable type of life insurance policy is term life insurance. This policy can be purchased for a term of anywhere from 5 to 30 years and is straightforward. Basically you pay an agreed upon premium, and if you die during the term of your policy, the insurance company will pay out the death benefit – subject to the policy terms, of course.

 

For example, life insurance policies contain a clause that allows the insurance company to contest or investigate a death if it occurs in the first two years, like in the case of a suicide, for example. However if all conditions are met and everything checks out after the investigation, unlike the guaranteed issue life insurance policy, a term life insurance policy would pay the full benefit, and not just the premiums paid for the first two years. 

 

Whole life insurance policies offer additional benefits besides just a death benefit. Whole life policies offer living benefits, including tax-free dividends that may accrue (referred to as the policy’s cash value); you may even be able to borrow money against the value of a whole life policy if there comes a time that you decide you need to do so. Whole life policies can be selected as part of your overall financial plan, but because you are not only paying for the life insurance premium in a whole life policy, but are also paying for a “savings” element, the cost will be more. This is a more expensive policy because you are building a life insurance policy with values in it.

 

Universal Life and Whole Life Insurance

 

Universal life insurance is another option that you may have heard of, as well as variable, and universal-variable policies. They are like whole life because of the term and the investment aspect. Universal life insurance will also be more expensive than term life because of the investment portion of your payments for this kind of policy. 

 

Asking About the Medical Exam

When choosing a term life policy, be sure and find out if it is renewable and whether you will need to take a medical exam to renew the policy. Obviously it is more advantageous to take a policy where you do not have to worry about qualifying again. The risk with term life insurance is that if you want to buy life insurance again after the selected term, you may have issues if you need to take a new medical exam. Always consider this in your decision. 

 

Converting Policies

Another tip when purchasing life insurance is to ask if the policy can be converted without a new medical exam. It is always a good idea to understand what your options are if your needs change in the future. The type of policy you take today may not be what you want in the future, you don’t want to risk losing value, or having to take medical exams if you decide you want a new kind of policy. Always ask questions before changing a life insurance policy because you may stand to lose a lot.

 

Combinations of Life Insurance Policy Types as a Strategy

When you are reviewing your options with a life insurance professional such as a financial planner, agent or broker, they may suggest combinations of different types of policies to save money. Make sure to ask lots of questions an have them help you figure out what makes the most sense.

 

For example, if you only need to carry a high level of life insurance for 10 years, yet you want to carry life insurance for your whole life, they may suggest taking a 10 year term for the portion of money you think you need for that limited time, and a smaller value in a whole life policy. 

 

For example, if you home will be paid off in 10 years, and your kids will be finishing college, you might decide that for the next 10 years you need $250,000 of life insurance, but after that, you may decide you only need $150,000 because you will have less debt and financial responsibility. So rather than offer you a policy of $250,000 on a whole life policy, they may offer you combinations of cheaper term life insurance for your selected term. In the case above, it may be a $150,000 term policy and a $100,000 whole life policy. 

 

There is no limit to the combinations a financial planner or agent may offer you. The most important thing is to understand what you want to accomplish and ask for all your possible options.

 

Now that you understand some of the basic policy types, you can talk to your financial planner or life insurance agent when shopping for life insurance and they should be able to explain everything so that you can make a well informed decision of the best type of policy for you and what strategy to use when buying life insurance.

 

 

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