Is life insurance right for me?
Married with or without children? Single parent? Own a business? Would these assets be financially stable if you were to suddenly pass away? If your answer is no, then life insurance is meant for you.
Why do I need life insurance?
It's hard to predict when a loved one will pass away. You need life insurance to protect your loved ones from financial insecurity in a worst-case scenario. Life insurance can be as simple as an end-of-life policy to something as complex as estate planning.
Do I need term or permanent life insurance?
With term life insurance you pay a policy premium for a set term, most commonly 10, 20, or 30 years. Term life insurance is cheaper than permanent life and is usually a better fit budget wise for most families. A permanent life insurance policy is in effect for your whole life, as long as you pay the policy premium. Permanent life insurance policies have something called "cash value." Cash value is an investment component of the policy that may grow tax free over time*. Cash value is a living benefit, and you can use it as an investment like savings account and withdrawal from it.
^If the growth of the cash value is greater than the premiums paid, the monies over and above the premiums will become taxable, unless it is borrowed.
How much life insurance do I need?
There are many variables that can be used to determine how much life insurance would be right for you. Income replacement, mortgage, other debts, children's education, and savings are a few of the standard inputs used to calculate life insurance needs. The most basic starting point is your annual income multiplied by ten. However, we always recommend consulting with a trusted agent to determine the appropriate insurance solutions.
How do I apply for life insurance?
For term life insurance the process is simple. With Shepardson Insurance Services we never charge for our services. We provide a consultation to determine your life insurance needs. Once your needs are reviewed and aligned on, we'll present you with a quote and advise on the policy that best fits your financial plan. You'll then need to fill out and submit an application, schedule a phone interview, and a medical exam (in some cases the medical exam may not be required). The medical exam is fairly simple. In most cases the insurance company will send a paramedical to a location of your choosing. They'll conduct a physical, ask current health and medical questions, and collect a blood and urine sample.
How long does it take to get life insurance?
You should expect the process to take anywhere between 4 to 6 weeks. Staying on top of the action items such as submitting the application, scheduling the phone interview, and the medical exam, will ensure a quick turnaround to issuing your policy.
I have life insurance, now what?
With or without life insurance, you need will. Especially if you have children. Did you know that if both parents die without a will the surviving minor children technically belong to the state? The state will determine the best fit guardian for your child(ren) instead of you. There are 3 types of wills to consider in California: statutory, attested, and holographic. Statutory wills are "extra simple" wills created by the state of California. You can find these wills online, print, and sign with at least two witnesses. Alternatively, you can put your assets in to a trust. There are also multiple types of trusts: revocable, irrevocable, living, and testamentary. We advise that you consult an estate planning attorney to best guide your decision.