Alabama Life Insurance Company
Reader’s Question:
Im planning to buy a life insurance in Alabama and I just want to ask how long should a term life insurance period should I buy?
Gene
Thank you for asking Gene.
Knowing which guaranteed term duration you should buy in Alabama – 10 years, 20 years, 30 years, or some other number – needs a thoughtful review of your debts, financial needs, dependents’ needs, and when and if all these might change over time. A policyholder has to decide how long a guaranteed term life insurance policy needs to be in force with a guaranteed premium so that the appropriate funds will be available to meet targeted financial needs such as:
* An amount of money that would be needed to replace all or a portion of your income for a certain period of time.
* amount of time for child care needed.
* The remaining time and payments on existing short-term and long-term debts and mortgages.
* The duration of Children’s and/or spouse’s education expenses.
* The amount of time you might have obligations or caregiver commitments to parents or elderly relatives.
Since term life insurance costs increase with age and will in most cases jump quite dramatically if continued year-by-year at the end of your initial guaranteed term life insurance period. It is probably smart to choose a generous guaranteed term period. Should your needs refuse prior to the end of the guarantee period you selected, the policy can be terminated early or the face amount (and thus the premium) reduced prior to the end of the original guarantee period.
You may speak to your Alabama insurance agent or any insurance company in your area to give you an advise regarding this.
Goodluck!
MariCAR
Buy Alabama Life Insurance
Reader’s Question:
I am planning to get a life insurance in Alabama but I don’t know how to go about shopping for it. Any tips?
Joanne
Montgomery, AL
As a long term proposition, you have to make sure that you will get the best deal in Alabama according to your needs, policy type, stability of the insurance company, and the best price.
First, you have to analyze your life insurance needs, considering the economic needs of the dependents left behind. Your financial situation in Alabama and the standard of living you want to maintain for your dependents or survivors would also be a factor, with the assumption of death, for you to determine your family’s long term needs.
Second, decide the most appropriate type of life insurance for your needs. There are 2 main types of life insurance: (1) death protection without any side fund buildups or “cash values”; (2) death protection which offer or require “cash value” accounts (return on investment component).
You can start comparing rates of life insurance policies from local Alabama life insurance companies. All you have to do is to plug in your zip code on the box located on this page and get some free quotes!
Alabama Life Insurance
Reader’s Question:
A friend of mine in Alabama suggests I purchase a variable life insurance policy and opt to invest the cash value in Alabama-based fund. Am I guaranteed I’d get my investments with this type of policy?
Tara
Montgomery, AL
Good Question, Tara.
No. Variable life is designed as a true investment with a death benefit. It has features to shift the uncertainties of investment gains and losses to the policyholder. In this type of policy, the insurance company invests your premiums to a fund of your choice which the company offers to you as possible investments.
The cash value, death benefits, and award to your beneficiaries of your policy will then depend on how well the insurance company invests your money. It provides no guarantee of either interest rate or minimum cash value. Therefore, theoretically, the cash value can do down to zero, and if so, the policy will have to terminate.
However, since there is also a possibility of increasing your cash value if your insurance company in Alabama invests it well, variable life insurance policy may also be a good option. Just make sure that when you purchase such policy, verify the investment and never put it on a speculative fund.
Affordable Life Insurance Alabama
Reader’s Question:
I had a heart attack 2 weeks ago. Will it be possible to purchase an affordable life insurance rate in Alabama after the attack?
Rick
Birmingham AL
It is important to provide the correct and accurate information possible to your insurance company to get the right quotation of life insurance rates. In addition, if the
insurance company finds out that you lied about the incident of the heart attack, they might automatically increase your premiums and pay the retroactive fees by force.
The severity of heart attack and heart disease will determine the cost of the life insurance rate which will not cost you an arm and a leg. Your condition will not necessarily mean
that you will have to pay more. By showing the insurance company that you are taking the proper medication to improve your health, you may be able to get the standard life insurance rates.
An application for life insurance policy right after the heart attack can result in higher rates. The best thing to do is to wait until a year or two. This will give you time to heal in addition to the proper medication and a change in lifestyle as directed by your doctor. This action will also show that your health has improved and stabilized because of the proper steps you take for the past 1 or 2 years. Remember to document the progress in your health. You can show the medical files to your Alabama life insurance company to get affordable life insurance rate.
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