Life Insurance Service in Surprise Arizona

When you get life insurance, you are entering into a contract with an insurance company that guarantees to pay a specific sum of money to your beneficiaries in the event of your death. In exchange, you make premium payments on a regular basis. The amount of your premium is determined by criteria such as your age, gender, medical history, and the quantity of life insurance you buy.

In the event of your passing, life insurance provides money directly to your beneficiaries. They can use the money for:
  • Making up for your lost income
  • Funding a child’s education
  • Paying off household debt
  • Paying for your funeral and other related expenses Certain types of life insurance may provide benefits for you and your family while you’re still living. For example, permanent life insurance offers a cash value component, which can be used during your lifetime.
Life Insurance Surprise AZ

There are two main categories of life insurance

Term life insurance

Provides coverage for your loved ones for a set length of time—usually ten to thirty years. When you stop paying your premiums, your insurance coverage ends. Term plans pay out payments if you die during the policy’s term, but they don’t accumulate financial value.

Permanent life insurance

Policies do not expire; provided you pay your premiums, they are designed to protect your loved ones indefinitely. Some of these insurance gain financial value over time.

Term life insurance is the most straightforward to comprehend and offers the best value. It protects you for a set amount of time, such as 10, 20, or 30 years. Online life insurance quotes are available.

Whole life insurance is more complicated and expensive than term life insurance, but it comes with extra advantages. Whole life insurance is the most well-known and straightforward type of permanent life insurance, and it covers you until you pass away. It also has a cash-value account that you may use to get money later on. This is a great benefit that many people use to decide when picking life insurance.

Other life insurance options

If you need lifelong coverage but want more investment options in your life insurance than whole life provides, consider other types of permanent life insurance.

  • Universal life insurance pays interest based on current market rates (like those that determine mortgage interest rates).
  • Variable life insurance or variable universal life insurance both give you access to direct investment in the stock market.
  • Indexed universal life insurance pays interest based on the movement of stock indexes.

How much life insurance do you need?

Your goal should be to develop a life insurance plan (through one or more policies) that, following your death, compensates for the loss of your economic contribution.

Here are two ways to determine how much life insurance you may need. Work with your financial advisor to figure out the best approach for you:

Replacement income need

This is a well-established method in determining the financial contribution you can expect to make to your family from now until you would retire. It’s more than just replacing your income; it accounts for everything you provide for your family, including:

  • Salary
  • Benefits/health insurance
  • 401(k) and retirement savings
  • Personal services you perform for your family, such as childcare, cooking, home maintenance, etc.
  • Less, your personal consumption—annual spending on personal needs, such as food, clothing, entertainment, etc.

Survivor needs analysis

This strategy is focused on replacing a portion of the income required for your surviving spouse and children to maintain a chosen standard of living. The demands of your survivors are then compared to their assets, current life insurance, and sources of income to decide if they require more life insurance. A financial adviser or an insurance specialist can assist you in determining an exact amount and selecting suitable coverage. It’s never too early to begin thinking about life insurance and ensuring the financial stability you and your family deserve.

What Life Insurance is the Best in Arizona?

There are two basic types of life insurance in Arizona—term and permanent. But which is best for you?

Term life insurance

It provides coverage for your loved ones for a set length of time—usually ten to thirty years. When you stop paying your premiums, your insurance coverage ends. Term plans pay out payments if you die during the policy’s term, but they don’t accumulate financial value.

Some people like to pay premiums on a whole life insurance policy in order to accumulate money that can cover expenses if they outlive their term plan. The downside of whole life insurance is that it requires you to pay the premiums every month, so this type of coverage isn’t ideal for those who don’t have a steady income. Furthermore, term life insurance can be canceled at any time.

Term Life Insurance VS. Whole Life Insurance in AZ

Term life insurance is a type of life insurance where the coverage ends at a predetermined length of time. Permanent life insurance, on the other hand, offers lifelong protection. It’s important to understand the difference in pricing and how each policy will work for you so that you can make an informed decision when it comes to buying a policy.

If you’re in the market for life insurance in Arizona, you’ll soon notice that there are several important differences between term and whole-life policies. While term life policies can be very affordable for younger people, whole life insurance, or permanent life insurance, has the added benefit of accumulating cash value. Either way, you’ll find that both policies offer many benefits, including peace of mind and financial protection for your family.

The biggest difference between term and whole life insurance is that term life policies cover the policyholder only for a specified period of time, while permanent or whole life insurance policies cover the policyholder throughout their lives. Term life policies pay out if the insured passes away before the term period is over, while whole life policies provide death benefits that are often used for a variety of expenses. Depending on your budget and your financial situation, you can use the death benefit to pay for funeral expenses, mortgage payments, college tuition, and more.

What is Term Life Insurance in Arizona?

Term life insurance is one of the most affordable forms of life insurance. There is no cash value to build up with this type of life insurance, and there is no surrender amount if you decide to cancel. Premiums are adjusted based on your age and current health. If you have significant health concerns, term life insurance is likely not the right choice for you. It’s best suited for individuals who are young and healthy or who do not have significant debt.

In Arizona, the laws concerning life insurance policies are called “incontestability clauses.” These clauses protect consumers by making it impossible for insurers to void the policy because the insured has failed to pay premiums. However, some types of coverage are not incontestable, including disability benefits, accidental death benefits, and suicide benefits. In addition, disability riders and group insurance products are not considered incontestable.

The most important thing to keep in mind when choosing a policy is the time period that the policy will cover. If you die during a time period that your family needs the money for, you may want to choose a term policy. Term life insurance benefits your family by replacing your income and paying for expenses, like childcare. However, these benefits will end around the time that your family is no longer financially vulnerable. In addition, term life insurance is relatively inexpensive and does not build a cash value.

How Permanent Life Insurance Works in Arizona

If you are wondering how permanent life insurance works in Arizona, you have come to the right place. If you are planning to retire in the future, it is important to consider the type of coverage that will be best for you. The good news is that there are several types of policies available, including whole life and term life policies. Each type of policy has its own benefits, but the main difference is the amount of coverage each type of plan provides.

Most permanent life insurance policies come with a cash value portion that grows tax-deferred while you pay premiums. The death benefit, on the other hand, is the amount of money that your beneficiaries will receive in the event of your death. This cash value is not affected by your decision to cancel your policy. Instead, you will continue to accumulate cash value. This is the main benefit of having permanent life insurance in Arizona.

The sooner you act, the better your quote will be. Call today!

If you’re looking for life insurance, chances are you’ve already realized the importance of protecting your family in the event of your death. But with so many different types, how do you know which is best for your situation? American Insurance Benefits will be happy to help find a policy that’s right for you and your budget.

Our Arizona life insurance specialists can help you get a life insurance quote that fits your budget and what your family needs. We work with a network of top-rated carriers and providers to find the right coverage for you, whether it be term or permanent life insurance.

Arizona is known for its diverse climate, and our company is committed to meeting the diverse needs of our clients. We have helped thousands of people in the state, so let’s get started today on your Arizona life insurance quote. Whether you’re an individual or business owner in AZ, give us a call today at (623) 742-3878 and get started on getting a quote for your new Arizona life insurance plan!

Life Insurance FAQ

How can I determine whether I need life insurance?
As a general rule, if there are people who depend on you for financial support, like a spouse, children, or aging parents, then you’re a good candidate for life insurance. If you contribute to your household through cooking, cleaning, or childcare, a policy can account for the costs of replacing that labor. Additionally, if you have debt that another person will have to assume, like a mortgage or student loan debts, it’s a good opportunity to look into life insurance.
What kind of things does life insurance cover?
Life insurance can be used to cover a variety of common expenses, like: Co-signed debt, including student loans
Mortgages, College expenses for the kids, Living expenses for your family, Stay-at-home labor expenses (cooking, cleaning, etc.), Burial expenses, Loans from family members, Estate taxes that your heirs must pay for other assets
What is a beneficiary?
The beneficiary is the person or entity named as the recipient of your policy’s death benefit. It can be a family member, a person unrelated to you, or even a business or other organization. You choose the beneficiary on your own — you don’t need permission from the insurer or the beneficiary. You can also choose more than one beneficiary and designate how you want the death benefit to be split among them, and name contingent beneficiaries in case the primary beneficiaries predecease you.
Your insurer will automatically disburse the death benefit if you die, but it’s still a good idea to tell any beneficiary about the policy so they will be prepared to take action should a problem arise. For this same reason, it’s also a good idea to provide the beneficiary with access to the contract.
Does a beneficiary need to do anything to receive the death benefit?
Technically a beneficiary does not have to do anything to receive your policy’s death benefit, but it’s a good idea to make sure he or she is aware that the policy exists in case there are any delays or complications on the insurer’s side.
The insurer will require proof of death and a copy of the contract in order to disburse the benefit.
Is the life insurance my employer provides enough?
Many employers offer life insurance as part of a benefits package. Usually, the amount is a multiple of your salary, up to a limit (usually one or two times your salary). Whether this is enough protection for your needs depends on your financial situation.
Life insurance is more expensive for those who are older or in poor health, so employer-offered life insurance can be a great way to obtain coverage if you can’t otherwise afford it.
Are my life insurance premiums tax-deductible?
The premiums you pay for your life insurance policy are not tax-deductible.
What’s the difference between an agent and a broker?
The difference between an agent and a broker is that an agent usually sells insurance for a single insurer, while a broker sells insurance for any number of insurers.
In some cases, an agent may actually be employed by the insurance company, although there are also agents who are self-employed.
If you’re looking for details about a specific insurer’s products, an agent may be the best person to talk to. However, if you’re trying to comparison shop across multiple insurers, you may want to contact a broker.
Agents and brokers always provide their services for free and earn commissions off of the policies they sell.
What happens to the money I pay into a policy if I outlive the coverage term?
If you outlive your term life insurance, the policy expires and you do not receive a refund of premiums paid. You may have an option to convert your term policy into a permanent policy after it expires.
What happens if I can’t pay my policy premiums?
Most life insurance policies include a 30- to 31-day grace period after your payment due date (the exact period can vary by insurer or state). If you don’t pay your premium within that period, your policy will lapse and you will need to work with your insurer to reinstate your coverage. Learn more about life insurance policy lapses.
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