Life Insurance Policies for Winchester and Pittsfield Illinois
A life insurance policy provides financial protection for a family in the event of an untimely death. It helps pay for the costs of the funeral service, unpaid debt, and other financial obligations that can put a burden on a grieving family. Additionally, a life insurance policy can provide living benefits, depending on your coverage options, for things like:
- Needing cash for a down payment
- Tax-free college expense funds
- Tax-free retirement supplements
- Long-term care expenses
- Tax-free estate planning
Term Life Insurance
A term life insurance policy is set for a certain period of time and is common when you have financial obligations such as kids, mortgage, or other outstanding debt. This is a favorable option because it offers affordable rates and a tax-free lump sum of money for a financial safety net.
Term life insurance is the most cost-effective option in the market. You can expect to pay anywhere from 6 to 10 times more for a similar benefit with a whole life insurance plan. Do you have questions about a term life insurance plan? Contact Peak Insurance Agency today!
Permanent Life Insurance
A permanent life insurance policy provides protection throughout your entire life. Regardless of any health changes, as long as you keep paying your premium, you’ll receive coverage. Your premium rates may rise to adjust to the rising cost of insurance, and your policy may accrue a cash value that can be used during your life.
How Much Life Insurance Do You Need?
How much life insurance coverage do you really need? Everyone’s situation is different, and for that reason, every policy is unique. However, the general guideline is between 5 and 10 times your annual income. Some factors that affect your life insurance needs are:
- Net worth
- Income needed by your spouse/family in the event of your death
- Gross income
- Spouse’s gross income
- Whether debts will be paid upon your death
- Burial expenses
Not surprisingly, most Americans buy life insurance near a “life event,” such as marriage, divorce, birth of a child, or purchase of a home. No other product combines the flexibility and security of life insurance to meet the needs of families following the untimely death of an individual.
If you have questions about term life insurance or whole life insurance, or want to request a free life insurance quote, call Peak Insurance Agency at 800-742-9596.