Montgomery Alabama Child Life Insurance
Reader’s Question:
I am a single parent of a 5-year old from Alabama. Do I need a life insurance? Can a life insurance cover my child’s college education? Will a life insurance pay my mortgage and credit card debts after my death?
Marianne
Montgomery, AL
Very relevant questions, Marianne.
Yes, I think you need one…especially that you seem to be the breadwinner of the family. A life insurance will take care of your family’s needs in the event of premature death. The logic is this: when someone else depends on your income, then by all means, secure his/her financial future by getting a life insurance.
I think all of your questions can be answered by one: How much life insurance do you need to maintain you family’s lifestyle?
To put things into a simple perspective, you have to bear in mind that when you plan to purchase a life insurance policy in Montgomery, you need to assume premature death. By doing this, you will be able to highlight your family’s needed protection from the loss of income in case you die.
A primary consideration when estimating your life insurance needs is the immediate, as well as the long term, income needs of your family upon your death. This includes, but not limited to, funeral expenses, final medical expenses for the insured, repayment of short-term loans (such as credit cards, auto loans, etc.), and paying off the mortgage.
Simply put, you need enough to protect your families’ loss of income if you die. When calculating the amount of Life Insurance that you need, you should consider the immediate needs of your family upon your death, as well as their long term income needs. Example of long term needs include lost income to support your family until your kid is grown up and need to pay for college. Retirement can also be protected by a life insurance.
For you to get the best deal, you may contact a local life insurance agent in Montgomery and ask for a free quote after you sit down and discuss your current circumstances. Or better yet, you can start to search online to get free quotes from Montgomery life insurance companies.
Universal Life Insurance Alabama AL
Reader’s Question:
A local insurance company in Alabama offers coverage for a universal life insurance. Does a universal life insurance policy assure of a fixed premium for the whole term?
Nick
Huntsville, AL
Good Question Nick.
No. The insurance policy can increase charges since it offers greater flexibility compared to the Alabama whole or term life policy. With a universal life insurance policy, you can make changes while the policy is in force. Even after your initial payment, you can still reduce or increase the amount of your death benefits and even pay premiums any time and in any amount, as long as you don’t miss a minimum payment. Because of this flexibility, insurance companies can increase charges at any time during your term.
Though offering greater flexibility in terms of making changes while the policy is in force, the Alabama universal life insurance policy can have many moving parts which should be understood before you make the purchase. For example, if you choose to increase your benefits, you may have to provide medical proof that your health has not deteriorated. You can also pay premiums any time and in any amount, but in some cases, there are limits to how much extra you can pay in advance premiums.
Ask your local insurance company in Alabama for details on the moving parts of their universal life insurance.
Alabama Whole Life Insurance
Reader’s Question:
I recently moved to Alabama and a local life insurance company agent who happens to be my neighbor is offering me a whole life insurance. She says that I should get a participating policy. What does that mean?
Mary
Huntsville, AL
Thank you for asking Mary
Whole life insurance policies generally offer “permanent protection” with a cash value account that grows over time. It provides a level death benefit and level premiums throughout your life and for as long as you continuously pay premiums. Who owns the cash value? The insurance owns it but will make it available to you in the form of low interest loan.
Whole life can be issued in two ways: as participating or nonparticipating. Participating whole life policies typically cost more by design and contain the intention of returning some part of the premium to the policyholder each year in what’s called a dividend. Nonparticipating whole life insurance has no dividend or return of premium features, but generally cost less from the start.
For more accurate policy issues, feel free to contact your neighbor in Alabama. She might be able to give you more detailed information as to policies available for you.
Whole Life Insurance Florida FL
Reader’s Question:
I have a whole life insurance policy with a company based in Alabama. I have been paying premiums for two years already and this year, I am planning to purchase a new house in Florida. Can I still use up the amount from the cash value account of my whole life insurance in Alabama?
Frank
Montgomery, AL
Thank you for asking Frank
Yes. Ordinary whole life insurance offers a “permanent protection” with a cash value that grows over time. It provides a level death benefit and level premiums throughout your life for as long as you continue to pay the premiums. It also contains a cash value account that builds over time which eventually equals the face amount of the policy.
Normally, in whole life insurances, the Florida insurance company owns and retains title to the cash value of your premiums but will make it available to you in the form of low interest loan. I you don’t pay them back the interest, you risk your beneficiaries receiving a reduced death benefits.
It is best to consult your local life insurance policy in Alabama for more detailed information
Term Life Insurance Alabama AL
Reader’s Question:
I have currently moved to Alabama and am planning to apply for a life insurance. How does term life insurance differ from cash value life insurance in Alabama?
Mark
Birmingham, AL
Thank you for asking Mark.
Term life insurance is a type of insurance policy that provides death benefits without any savings, investment or “cash value” components for the term of coverage. It is usually the cheapest and the simplest to understand. Normally, premiums of this type are guaranteed not to increase for a given set period of time. The company cannot cancel you as long as you pay the premium.
On the other hand, cash value life insurance is another type which offer or require “cash value” accounts with a return-on-investment component aside from death benefits. “Cash value” accounts maybe in a form of a long-term savings account (though without insurance by any federal agency) or stock market investment. Expect to pay much higher premiums per $1,000 of coverage because of the funding for a cash value in addition to the assumption of death costs.
It would be much better if you contact a local life insurance agent in Alabama to know more information about life insurance in Alabama.
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