Protecting Your Financial Future With Life Insurance

Eliminate Unforeseen Financial Debt With Life Insurance

Life Insurance Is An Affordable Solution To Eliminate The Concern Of Unforeseen Financial Debt

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Emily is twenty-three years old, graduated College in May 2016, and has $38,000 in student loans with her mother as the co-signor on the loans. Recently two of Emily’s friends were killed in a tragic car accident. Emily is very concerned that if she died her Mother would be stuck having to pay back her student loans. Emily has a valid concern. When a person cosigns on a loan, in the event of a death, the cosigner is legally responsible for paying the loan. Life Insurance is an affordable solution to eliminate Emily’s concern of not wanting to burden her mother with financial debt.

After speaking with me Emily was eager to learn more about the different types of Life Insurance available, how they differ and how they are priced to fit in her budget. I want to share with you some of what we discussed. I gave a very detailed description and explanation of the three main Life Insurance types during our conversation. I will explain them here in brief.

Young Family Photo

Get The Most Life Insurance For The Least Amount Of Money

Term Life Insurance is the most affordable coverage for young healthy people allowing them to get the largest amount of Life Insurance (Death Benefit) for the least amount of monthly premium.

[Related: What Is Term Life Insurance?]

It does not build-up Cash Value. It is for a specific set period of time, (five year, ten year, fifteen year, twenty year, and thirty year term periods) during the set term period the premium stays the same every month. After the set term period has expired the policy may be renewed at a new set term period and the new premium will be based on your attained age. A twenty year old that has a ten year term will pay more when they renew at age thirty ten years later. It is similar to renting an Apartment versus buying a House (Term vs. Whole Life). An apartment has no build up of value in equity while a home can build up value in equity as you pay down your mortgage loan. The monthly rent paid on an Apartment is also subject to drastic increases while most mortgages have a fixed monthly payment.

Whole Life Insurance builds up Cash Values, the monthly premium never changes and is based on your age when you first purchased the policy. When your policy comes with a Cash Value build-up you have more options. Your total amount of Life Insurance (Death Benefit) can increase over time. You can take a loan from your policy as the Cash Values increase. As you age the Cash Values can be used to reduce and/or or pay your monthly premium.

Universal Life Insurance is a combination of Term Insurance with a Cash Value build up. The premium can increase every year based on your attained age. If you have enough Cash Value built up your premium can be reduced. As you get older you may be able to lower the amount of Life Insurance (Death Benefit) as your need for larger amounts of coverage may change.

Which Life Insurance Is Appropriate For Me

Which Life Insurance Is Appropriate For You

For a healthy twenty-three year old that wants $50,000 of Life Insurance (Death Benefit) - The most affordable coverage is Term Life Insurance until that set term expires.

Universal Life Insurance and Whole Life Insurance should be considered by young people who are doing well financially and can afford a larger premium every month. If you can afford to buy a Whole Life policy today it will be less expensive than waiting twenty or thirty years to purchase the same policy. Health issues that usually come with age will also make the premiums more expensive in the future.

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My Bank Always Asks Me To Buy Life Insurance

My bank is always asking me to sit down and sign up for Life Insurance from them. Is this a good thing for me?

Most banks are always looking to increase their revenue with fees and ‘value-added products’ for sale. The bank will usually have one company they represent. We call this the Red option. The Red option may not be the best fit for all people as the premiums may be higher for some and as a captive client of the bank this could be the only option offered to you. An important question you should ask is: do other options exist for me and are the other options a richer fit for my needs based on my health and budget?

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Eastway Insurance Agency, Inc.

What makes us unique is simply being honest. We approach each client, situation, question, problem, issue and each new day with complete honesty. We sit down with people to go over their needs, situation and their issues. We answer their questions in a relaxed atmosphere where the pressure to buy is replaced with the opportunity to learn. This is our niche and why we have been in business for over thirty years: as time goes on just being honest is becoming rare.

Most know that nothing is free and if it says it's free there is a cost somewhere along the line. Some people like to put a spin on things to make them sound better. Some companies offer free gifts to ‘sign up’ with them. True Personal Service is the only free gift our Agents offer.

Our Agents can come and visit you for free and provide you an opportunity to voice your thoughts and ask questions. The only cost is if you decide to purchase a policy and the cost of that policy will not change because you purchased it through us. The only thing that does change is this: if and when you have a question,...

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