Family Protection with Life Insurance

A personal insurance policy is there to cover the cost of the unexpected, but it also provides people with the peace of mind in knowing that financial matters will be taken care of when life’s nasty surprises suddenly rear their ugly head. Of all the different types of personal insurance currently available, it is perhaps life insurance that pulls at the heart strings the most. A sudden death can leave dependent relatives vulnerable, but life insurance can ensure that loved ones are looked after financially when an income is suddenly lost. There are a number of factors to consider before buying the best insurance policy for your needs.

How Much Insurance Coverage Do You Need?
The more coverage you require, the more expensive your premiums will be, so it’s important to gauge your liabilities and purchase only the amount of coverage you need. If you are the main earner in your household, you will want to know that your mortgage is taken care of, your children are looked after until they grow up and any outstanding financial liabilities are paid off. You should consider taking out a policy that will pay beneficiaries at least seven times your annual salary. It is also good practice to assess your life insurance needs once a year. You may not realize it at the time, but growing incomes can lead to higher debts and higher standards of living.

Read more on finding the best life insurance policy for your needs. If you are currently considering Oklahoma city life insurance but are unsure of which type of policy is best for your specific circumstances, call us at 800-375-8356, and we’ll talk you through your options.

The difference between Single and Joint Life Insurance

The decision on whether single life insurance is better than joint life insurance is not a straightforward one. Although many people choose between single and joint insurance based on cost, in reality, the savings may end up being negligible when the unexpected happens. There are many different ways to look at the matter. Insurance decisions vary between different circumstances.  These circumstances include:

- a single professional in a committed relationship with another single professional;
- both partners in a marriage work in full-time careers;
- you belong in a more traditional marriage where one spouse is a higher income earner while the other takes responsibility for home and family.

In addition to the nature of your relationship, other factors include whether you have dependents or a joint business or if critical illness is present. Learn more about single vs joint life insurance. 

People are complex and we live complex lives in which things don’t always turn out as expected. When it comes to life insurance, the possible outcomes are many and varied, and there are different insurance policies to help you adapt to these eventualities. Your insurance professional can help you make the life insurance choice that is right for you. Contact us today at 405.751.8356 and to get an Oklahoma City life insurance quote.

Variable Life Insurance

Variable Life Insurance—The Basics
If you’ve decided to get a whole, or permanent, life insurance policy then you are going to have a policy that not only pays out a death benefit, but also accrues cash values which can earn interest and accumulate. Whole life policies aren’t a singular breed; there are many different types that you can get and one of the most popular is the variable life insurance policy.

What is a variable life insurance policy?

A variable life insurance policy is one that has its cash values invested in funds that the life insurance company sets up. These funds are created from various underlying investments like bonds, money markets, and stocks. The funds may be created based on risk tolerance, type of investment or even for the purpose of diversification.
The important note here is the word variable. That word means that your cash values will perform as any other investment would, and means they may increase and gain in value or they may decrease in value. This can happen throughout the life of your policy, depending on how the underlying investments perform in the fund that you’ve chosen.
Like other permanent policies, the variable life needs to be underwritten only once—when you first apply (unless you allow it to lapse through nonpayment of premium and want to reinstate it). The death benefit and premiums are fixed for the life of the policy and, as long as you pay your premiums, you can expect your beneficiaries to receive the death benefit (normal exceptions including material misrepresentation and two-year exclusions apply).
Can I switch funds?

If you choose a fund when you first take out the policy that you feel is no longer right for you, then you can switch funds. It is important to note that even if you switch funds, any losses you experience will not be gained back upon switching, although your fund could increase in value giving you the opportunity to gain it back again. As you age and your tolerance for risk reduces, you may find it a good strategy to switch from aggressive funds with high historical returns to less aggressive funds.
How does this affect my death benefit?
If you lose money in your cash value, that is held separate from your death benefit and won’t affect any payout to your beneficiaries. If you take a loan from the cash value and do not pay it back, then your death benefit may be reduced.
A variable life insurance policy has more risk than a fixed policy, but it also has the potential for more flexibility and higher cash values. It is important to work with your agent and weigh the benefits and drawbacks of variable life against your personal goals.
Make sure you have the best possible option for your Oklahoma City Life Insurance policy with Alexander & Strunk today!