Do You Need Life Insurance?

By: Frank Baccellieri, Producer, EPB&B Insurance

Life can be hard, but buying life insurance does not need to be.  Life insurance is a compassionate way to financially protect the dreams of those you care about. At Elliott, Powell, Baden & Baker we will help you find the right life insurance for your family’s future.

What Is Life Insurance

Life Insurance is a form of financial protection for the beneficiary(s). At the insured person’s death, the insurer provides funds to the beneficiary(s) for their needs and or wants tax free. The premature death of a parent is devastating. Most households these days have both parents in the workforce. The loss of one person’s income is life-changing for many. Life insurance can mitigate some financial loss and give the spouse and children time to consider their options and make life changes they may need or want to make. Final life and death expenses run thousands of dollars, and Life Insurance can make those costs easier or able to bear. 

What Types Of Life Insurance Should I Consider?

There are two primary types of Life Insurance, Term Insurance, and Permanent Insurance. 

  1. Term Insurance is level guaranteed premium insurance for a specific term, 5, 10, 15, 20, 25 or 30 years. It’s more like your other insurance in that you,  pay it and have coverage for the policy term. Most Term Insurance can run longer than the specific term, but the cost goes up to the insurers Policy rates for the persons age at the end of the policy term. EXAMPLE: A thirty year old who buys a 30 year term policy, contracts a life threatening disease before age sixty, and may be ineligible to buy a new policy. At age sixty the “term” ends, but the insured will pay the 60-year-old age rated cost, and each year thereafter, age 61, 62 and so on. 
  2. Permanent Insurance is purchased when you have a permanent need for insurance. This can be anything from income replacement, estate taxes, asset transfers, business transfers, business continuations, and deferred compensation. Permanent insurance has the cash value component. These policies have a cash value which is a component to keeping the policy in force in later years. The cash can be borrowed subject to the terms and conditions. 

Other uses for Life Insurance can be to provide cash for those with estates that incur inheritance taxes. Having the cash to pay the taxes and legal expenses, may allow the beneficiary keep an asset they might otherwise have to sell in order to pay those taxes. 

Businesses also buy Life Insurance for “Key Persons”. Owners insure each other and/or key personnel to provide ready funds at a death. This can be for buyout needs, finding and hiring a replacement, loss of business income, etc. 

How Do I Qualify For Life Insurance? 

To buy Life Insurance, you will need to provide personal information, which includes your medical background, and your doctor’s information. If buying $100,000 or more coverage, a “paramed exam” may be done at your home or work. Typically blood can be drawn or other short tests as may be needed. 

 There are several types of life insurance, and at Elliott, Powell, Baden & Baker our dedicated life insurance team will help customize a policy that is just right for you. It is important to be aware that life insurance becomes more expensive as your age, so the sooner you make the decision to secure your future, the more options and flexibility you will have.   Please contact us for a no-obligation life insurance quote.

Frank Baccellieri, Producer. Valued EPB&B team member since 2005

Elliott, Powell, Baden and Baker 

PH: 503 445-1234

E: Fbaccellieri@epbb.com

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