None of us like to talk about or even think of death. It’s an area where people don’t want to go to. Life insurance is an important issue to discuss.
Especially if you have people that depend on you financially. If God forbid, you go to heaven sooner than expected, at least your family will be taken care of financially.
On today’s episode of The His & Her Money Show, Andrew Doerman, from Legal & General America, shares his insights on life insurance. Andrew has been in his field for 15 years.
He is married and has three children. We left no stone unturned in this episode. Get ready to take some great notes and ultimately take action.
Why Life Insurance
Life insurance is insurance to cover your life, much like auto insurance. Owning life insurance gives you the peace of mind that if something happens to you, you know your loved ones that depend on you financially, will be taken care of.
The payout can be used to pay off mortgages and car notes in the event of your passing. This will give your loved ones a chance to grieve and not worry about money.
Term Life Insurance
This type of insurance covers you for a specified amount of time. You can decide the length of time that you will be insured. Anything between five to forty years can be chosen. This is also the most affordable way to buy life insurance.
Whole Life Insurance
This type covers your entire life span. The downside for this is that it costs seven to ten times more than term life insurance for the same amount of coverage. It does accrue some cash value over the length of the policy, but should not be viewed as an investment vehicle.
How To Go About It
Once you have decided to get life insurance, do your due diligence and research. Find the product that fits your need the best and fits your pocket too. Research the longevity of the company. You want to make sure they will be around for a long time.
Companies that can help you with this are called independent rating agencies. Some examples are AM Best, Fitch Group, and Standard & Poors. These companies grade insurance companies. This will help you in your decision making.
The Underwriting Process
You will be required to complete two questionnaires, one general and one medical. The underwriting process begins once the paperwork is submitted to the insurance carrier.
The insurance company will check the information submitted and make an offer to you, the client. You can then make your decision and once you pay, you’re covered.
Husband And Wife
A husband and wife should both get life insurance coverage. Even if one spouse is not working, in the event of his/her death, there will be additional expenses that need to be covered. For example, childcare. Also, this will allow the other spouse to grieve in peace and not have the additional stress of financial worries.
Why Choose Legal & General America
It was established in America 65 years ago and they have an impeccable and highly rated reputation within the industry. They specialize in term life insurance. Their value proposition to their customers: to be the low-cost leader in term life insurance.
- Legal & General America is a leader in low-cost, high-quality life insurance
- Legal & General America is a top 10 U.S. life insurer
- For nearly 70 years, Legal & General America has been providing financial protection for over 1.3 million American families and businesses
- Legal & General America is the first and only [company /carrier] to offer up to 40 years of level term life insurance coverage, providing 10 years of added security compared to traditional term life policies. A 40-year term is great for those looking to fulfill a basic protection need into retirement
- Legal & General America makes understanding and applying for life insurance easy. Agents are standing by to help you determine the best coverage to fit your family’s needs.
Visit Legal & General America here to learn more and to get started on your journey toward financial wellness.
What You Will Learn
- What is life insurance
- Why is it important
- What is the difference between term and whole life insurance?
- Why you need life insurance if you have a mortgage
- What is a life insurance needs analysis?
- Why an annual review of your life insurance is important
- Why work policy insurance is not enough
Resources Mentioned
- Legal & General America – Life Insurance and Retirement
- AM Best Company – Credit rating agency
- Fitch Group – Credit rating agency
- Standard & Poor’s – Credit rating agency
- The Umbrella Insurance – Additional resource to learn more about life insurance
Thanks For Listening!
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Today’s show is sponsored by Legal and General America. Legal & General America makes understanding and applying for life insurance easy. Also, agents are standing by to help you determine the best coverage to fit your family’s needs. Visit HisandHerMoney.com/lgapodcast to get started on your journey toward financial wellness.
