Category: Life Insurance

Whole Life and Term Life Insurance Policies: What You Need to Know

Whole life and term life insurance policies are the two main types consumers can purchase. These two kinds of life insurance each have their own advantages and disadvantages. Each has benefits that make them popular as ways to protect loved ones after the policyholder’s death. These two policy types function very differently from each other. However, each pays a death benefit to beneficiaries upon the policyholder’s death. This is essential in preventing loved ones from facing financial hardship. Contact us at Adams Insurance & Financial in Northwest Arkansas to get started with a life insurance policy.

Whole Life Policies

A whole-life policy is one that has no expiration date and can be kept for as long as you want. This type of insurance is popular because you can maintain it even as you enter your elderly years. While obtaining a new policy at this age would be difficult, with a whole-life policy, you continue paying for it. A whole life policy doesn’t expire like a term life policy does. Moreover, whole-life policies also accumulate a cash value over time that you can borrow against if needed.

Term Life Policies

Term life policies come with a set expiration date after a specific number of years. The policy remains effective for the specific term of years chosen. After that, the policy expires, and you’re no longer covered. This type of policy doesn’t accumulate any cash value like whole-life policies do. However, due to its significantly lower cost, this type of policy is quite popular. It’s affordable for many people who need a policy on a budget.

Securing Your Life Insurance

Regardless of the type of policy you want, life insurance is vital. To get started, call Adams Insurance & Financial in Northwest Arkansas.

Find the Right Life Insurance Coverage with Adams Insurance & Financial

If you’re in Northwest Arkansas and considering life insurance, Adams Insurance & Financial can guide you to ideal coverage. A life insurance policy doesn’t just offer protection; it gives your family future security and peace of mind.

Work with Dedicated Agents

Reach out to our agents, and you’ll have a knowledgeable advocate by your side. They’ll discuss your needs and help you decide which coverage and level best suit you. Considering upcoming major life changes like buying a house, getting married, or starting a family helps the agent tailor the best policy for you.

Navigate Life Changes with Confidence

As you navigate life’s twists and turns, updating your policy ensures continued security for your family. Building a relationship with your insurance agent makes these updates easier, ensuring you’re adequately covered in the long term.

Reach Out to Us Today

Contact Adams Insurance & Financial if you’re in Northwest Arkansas and looking to secure your family’s future with life insurance. We’re here to help you feel confident in the policy you select. Discussing life insurance may not be comfortable, but it’s crucial for your loved ones’ future protection. Let us provide the options you need to find the right coverage.

Having life insurance can help protect your loved ones and give you peace of mind. If you’re in Northwest Arkansas and looking for help with your life policy, Adams Insurance & Financial is here for you. Having questions is common, and it’s important to get well-informed answers from a trusted agent, so you can make a knowledgeable decision.

Here are three of the biggest questions to ask:

1. How Will This Protect My Family?

Protecting your family is the main goal of an insurance policy on your life. This kind of insurance can help your loved ones keep their assets and a secure standard of living if you pass away. The goal is to determine what type of policy you need and how much coverage will be best for your situation, so you can choose the kind of protection that gives you and your family the security they deserve.

2. What Are the Different Policy Types?

There are term life and whole life policies, and they have different requirements and coverage opportunities. The right one for your needs is important. Working with an agent can help you get the best policy, allowing you to increase your family’s protection in a way that also works for you.

3. How Often Should the Policy be Reviewed?

You want to review your life policy at least every couple of years and anytime there’s a big change in your life. Performing a review with your agent will ensure that the policy is still right for you and your family.

Schedule A Consultation Today

If you’re in Northwest Arkansas and looking for a life insurance policy, get in touch with us at Adams Insurance & Financial today. We understand the importance of this kind of policy and the protection it offers for the future.

In Northwest Arkansas, our team at Adams Insurance & Financial frequently hears questions about whether policyholders should wait until they fall ill or reach old age to get a life insurance policy. While every policy is different and every situation is different, our answer to this question tends to surprise our clients.

We usually recommend that potential life insurance policyholders don’t wait until they are getting older or sick to get a life insurance policy. For more details on why we make this recommendation, keep reading below!

Why Shouldn’t I Wait for Illness or Old Age to Get Life Insurance?

The main reason why we recommend getting life insurance sooner rather than later is that advanced age is one of the factors that drive up the cost of a life insurance policy. If you get life insurance when you are young and healthy, you’ll save money on life insurance in the long run.

Most insurance companies tend to see someone who is healthier and younger as less likely to develop a severe life-threatening health condition in the near future than someone who is older or already ill. 

Since every life insurance policy has its own specific terms, some policies and insurance companies might not differentiate. Even so, there are other reasons to get life insurance at a younger or healthier stage. On top of potentially saving money, having a life insurance policy as a younger person can give you peace of mind that your family will be cared for financially if you pass away. Since unexpected events happen every day, life insurance is a useful safety net for the unexpected.

Reach Out To Us!

To learn more about our life insurance policies, call Adams Insurance & Financial in Northwest Arkansas today!

Do you have questions about life insurance? Having an insurance agent you can count on to answer those questions is important. At Adams Insurance & Financial in Northwest Arkansas, we have an experienced team of agents who are ready to provide the information you need to make a decision about what life insurance is right for you. 

Life Insurance FAQs

When should I review my life insurance?

If there is nothing changing in your life, a yearly review should be adequate to make sure that you have exactly what you need. But if you have had any life changes, changing jobs, getting married, having children, or retiring, it is a good time to do a review of your coverage. 

Do I need to buy life insurance if I get some from work?

Simply stated, yes you do. Can you guarantee that you will only work for this one employer for your entire work life? The average is 12 jobs in a lifetime. That means changing your life insurance 12 times. In order to secure the future of your dependents, you need to be in control of the amount of life insurance that you have. You need your own life insurance and your employer coverage is a nice additional benefit. 

When is the best time to buy life insurance?

Before you need it is the obvious answer. When you are young and healthy, life insurance is the most affordable, but, for term life, it makes more sense to buy it after you have dependents. You want to make sure that your dependents are protected for as long as they need to be protected. With a 20-year term, you probably need multiple policies that extend the term you are covered to up to 30 years. 

Give Us A Call

Contact Adams Insurance & Financial in Northwest Arkansas when you have questions about life insurance or need to get a life insurance policy. 

Life insurance is an essential coverage and kudos for starting the process of getting it. However, you might be in a dilemma over how much life insurance you need. Here is a breakdown of how much life insurance you need as a resident of Northwest Arkansas by the insurance experts at Adams Insurance & Financial.

Calculating Your Life Insurance Need

The goal of life insurance is for you to protect your dependents financially in case you pass away. Your current financial and your current and future family situation will influence how much life insurance you need. Here are some easy-to-use formulae to use:

• Multiply your annual income 10-fold

Multiplying your income 10-fold is the simplest way to calculate how much life insurance you need. For example, if you earn $75,000 annually, you multiply this by 10 to arrive at $750,000. Therefore, you should purchase a life insurance policy worth $750,000. However, this formula doesn’t give a detailed look at your family’s evolving needs and other factors like existing life insurance and savings.

• Multiply your annual income by 10 and $100,000 for each child’s college expenses

This formula for calculating life insurance needs is an improvement to the one above as it considers the children’s college expenses. Let’s say you are a parent to 3 children whom you expect to go to college, and your annual income is $75,000. Your total life insurance need will be $750,000 plus $300,000 for your children’s college expenses, which adds up to $1.05 million.

• Utilize the DIME formula

The DIME formula takes a detailed look at your finances and your family’s evolving needs. Your debts, income, mortgage, and children’s educational needs will be considered when figuring out how much life insurance you need using formula. Due to the complexity of the DIME formula, it’s best that you have an insurance agent help you with the calculations.

Give Us A Call

Contact Adams Insurance & Financial for assistance with life insurance need calculation in Northwest Arkansas.

People that live in the Northwest Arkansas area are going to always have different personal insurance needs. An important type of coverage that all people need to consider getting is life insurance. With this type of insurance, you can provide financial support to those that you care about and receive other financial benefits. As you are looking for coverage, you can find there are various options to consider. The two most common are whole and term life and understanding the benefits of each will help decide which is right for your situation.

Term Life Insurance

A form of life insurance protection that all people should think about pursuing is term life insurance. This type of coverage will provide life insurance support for a specific period of time. It is ideal for many as the premiums tend to be more affordable and you can personalize a plan that will provide you with the right type and level of coverage. 

Whole Life Coverage

You should also consider getting a whole life insurance plan. This type of insurance will offer life insurance protection for the rest of your life if you continue to make payments each month. An added benefit is that it can be used as a conservative investment tool as some of your payments each month will accrue in an account and grow with interest. In the future, you will be able to take money out of this account. 

Getting a life insurance plan is a big decision for anyone that is in the Northwest Arkansas area. As you are assessing your personal insurance needs in this area, you should call the team with Adams Insurance & Financial. There are a lot of important choices to make and Adams Insurance & Financial can help you build a plan that will provide the ideal coverage. 

A new life coming into yours will make you reevaluate your priorities and plans. Adams Insurance & Financial serving northwest Arkansas has a quick primer on life insurance and how it can help your family now and later.

Term versus Permanent Life

Term life insurance lasts for a set amount of time and tends to have few benefits other than the potential payout. Permanent life insurance is more expensive, but it has benefits that make it more attractive, notably the ability to lock in premium prices and avoid policy renegotiations that are a part of term life policies.

Life Insurance Incentives

As you pay into a permanent whole life insurance policy, it might accrue an actual cash value. Universal life insurance policies will earn interest on this amount, which means it makes money for you. The indexed universal version provides a return based on an index like the S&P 500. Variable universal policies will let you choose some of the investments for your cash value. Some policies allow you to take out loans against the value or withdraw the funds.

The exact details of each policy type will vary between providers and situations, but that should give you a general idea of their benefits.

Life Insurance Options for Your Child

A permanent life insurance policy for your child can also be a wise investment. Since children are generally at lower risk and have no dependents, companies may offer even more incentives if you purchase a permanent policy. You have likely seen long-running advertisements for a whole life insurance policy for children that doubles the benefits once they reach maturity. You can grant the policy to them then, helping to protect any future grandchildren.

Sort Out Your Life Insurance Options

There is more to learn about life insurance, so new parents in northwest Arkansas should contact Adams Insurance & Financial to get a better picture of their available options.

Congratulations on making your first step towards safeguarding your dependent’s future. The critical part is over, but you’ve yet to make another lifelong decision that can cost you peace if you are not careful enough–choosing a life insurance beneficiary. Not sure what a beneficiary is? How to pick one, and why you should discuss it with your family? Adams Insurance & Financial will help you get all the answers.

What is a Life Insurance Beneficiary?

A beneficiary is simply the person or entity you want to receive and benefit from the wealth you leave behind in your life insurance policy. When you purchase your life insurance policy in Northwest Arkansas, you will be asked to name two people or entities as your beneficiaries. It is a critical part of the policy. After all, beneficiaries are the reason you’re buying the policy in the first place.

Who Can Be My Beneficiary

Anyone can be your life insurance policy. It can be your family, friend, neighbor, organization, business partner, or even a trust. It’s essential to note that some insurance companies limit the number of beneficiaries you can name. However, if you have to name all of them, it is critical that you determine the percentage each should get to avoid conflict.

Difference Between Contingent and Primary Beneficiary

Every life insurance policy comes with two entries for beneficiaries. You must add a primary beneficiary and a contingent beneficiary. The primary beneficiary is the first name to receive the death benefit if you die, but if the primary beneficiary dies before you, the secondary, also known as contingent beneficiaries, will receive the death benefit.

Need Help?

At Adams Insurance & Financial, we care about what you value. We are here to help you understand your policy better, so you can obtain enough coverage for the people that matter to you. Call our Northwest Arkansas agents, and they will be happy to help.

Life insurance isn’t a topic most people want to discuss. From our experience at Adams Insurance & Financial, we see most people procrastinate life insurance until something significant happens. This shouldn’t be the case. Purchasing life insurance early on is a worthwhile investment you can count on. But because it’s never too late, you can still buy life insurance to enjoy the below benefits.

To protect your loved ones.

If you have anyone that depends on you for financial support, that alone is a reason to buy life insurance. Life insurance substitutes your income when you pass on. As such, your dependents don’t have to suffer financially when you are long gone.

To leave an inheritance. 

Yes, you might not have substantial assets to leave to your heirs, but with life insurance, you have something to pass on. This way, you will leave your kids or parents with substantial financial support to cater to expenses you used to pay when you were alive.

To pay off debts.

Perhaps you have a home or car debt. If you were to die today, who will assume your obligations? Generally, your next of kin will have to bear the financial liability. Would you want that? Certainly not. With this in mind, obtaining life insurance takes care of your debts, thus making sure that your loved ones don’t have to carry your debt burden when your time comes.

For a sense of security.

Generally, human beings worry a lot. To this end, the thought of death might invoke a flurry of thoughts, especially pondering how your loved ones will cope when you are long gone. Of course, they will be sad, but they don’t have to slump into a financial mess when you die. Taking life insurance won’t replace life, but it gives you the certainty that your family will be taken care of when you die.

Life insurance in Northwest Arkansas.

Need more information on life insurance? Please contact us at Adams Insurance & Financial for more insights. And if looking for a life insurance investment, we are ready to help you protect your loved ones now and in the future. Please contact us today if you are in Northwest Arkansas and the surrounding areas.