Term Life Insurance! What is it?

What Is Term Life Insurance?

Term life insurance is a type of life insurance that guarantees payment if the covered person dies during a specified term. Once the term expires, depending on the company and coverage, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the policy to terminate. Term life insurance provides a death benefit, but typically no cash value whereas whole life insurance has a cash value that accumulates over time and creates an asset which may be used during your lifetime.

How Term Life Insurance Works

The insurance provider calculates the premiums when you purchase a term life insurance policy based on the payout amount on the policy as well as the age, gender, and health of the named insured. A medical assessment may be required in some cases. You might also be asked about your driving record, prescription drugs, smoking status, profession, interests and family background by the insurance provider.

If you pass away within the insurance term, the insurer will pay the beneficiaries the payout value of the policy. This cash benefit, which in most cases is not taxed, can be used by beneficiaries to pay for any hospital or funeral expenses, personal loans, or mortgage debt. If the policy expires before your death, there is no payout.  It is possible to extend a term contract at the expiration, but the premiums may be recalculated with your age at the time of renewal.

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Term Life Insurance Explained

Because this coverage offers a protection for a limited period and includes only a death payout, term life is typically the more affordable option. The overall risk to the insurer is lower than that of a whole life policy, and most term life insurance plans expire before paying a death benefit. The reduced risk helps insurers cut premiums.

Term life insurance tends to be the least costly choice for life insurance when you assess the amount of coverage that you receive for your premium. Interest rates, the insurance company’s financials, and state laws will also impact premiums.

 

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Benefits of Term Life Insurance

For young parents, this coverage is more attractive. For relatively low premiums, they can receive a substantial amount of coverage. The substantial benefit will offset lost income if a parent dies.

For people who temporarily require unique sums of life insurance, these plans are often ideal. For instance, the policyholder will calculate that their beneficiaries may no longer require additional income support or will have accrued adequate assets to self-insure by the time the policy expires.

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:

“I’ve always been treated like family. Special Care is taken to make sure I’m completely satisfied. Thank you.”
David Swanberg – Crystal Clean Maintenance – Murrieta, CA – Client Since 2000

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

How Do I Know When It’s Time to Reevaluate My Life Insurance?

Signs that it’s time for a life insurance review.

Life insurance is not something that you can allow to simply sit idle.  Like all other forms of insurance, you need to regularly review and update your life insurance coverage to ensure that it meets your needs.  Outside of annual reviews, you should also be sure to review your life insurance policy when you experience major life changes.  Here are some of the events that indicate that it’s time to reevaluate your life insurance coverage.

1) Your Family Has Grown

If you’ve gotten married or had children since you first secured your life insurance policy, then you need to review your coverage to ensure that it will protect your growing family.  Oftentimes, policyholders will have to increase their coverage to take care of their loved ones’ financial future.

2) You Have New Financial Responsibilities

Finally, if you have purchased a home, started a business, or taken on another long-term financial obligation, then you need to reevaluate your life insurance.  You will likely need to increase your policy’s coverage limits to ensure that your financial obligations are taken care of in the event of your unexpected death.

3) You Have Experienced Career and Income Changes

If you’ve made a career change, then you need to discuss the implications of this new job on your life insurance.  This is because your new position could mean a change in the amount of risk that you face.  Additionally, the position could result in a significant salary increase.  Your life insurance coverage should increase alongside your income to ensure that your policy will cover your lost wages.

These are some of the life changes that signal that it’s time to review and update your life insurance policy.  Do you need help securing or managing your life insurance coverage?  If so, then contact the experts at Stromsoe Insurance Agency in Murrieta, California for assistance today.

Why Estate Planning is Important for Everyone

Here’s why everyone, even you, needs to start thinking about estate planning.

Estate planning is the process of organizing your belongings and arranging how your assets will be handled after your death. While you might think otherwise, estate planning is important for everyone, no matter what stage of life you are at. Not convinced? Here’s why estate planning matters for you.

Everyone Has an Estate

When you hear the term “estate,” you’re probably envisioning a mansion set on multiple acres of land. However, in reality, the definition of an estate is much less luxurious. When it comes down to it, your estate is simply everything that you own. If you are just starting out, your estate might comprise little other than your personal possessions. However, as you advance in life, your estate might grow to include things like property, investments, and other assets. Because everyone has an estate, it’s important that you make plans dictating what will happen to your belongings and other assets after your death.

Peace of Mind for Your Loved Ones

Perhaps the most important reason to get involved with estate planning is that doing so now could ease the grief of your passing and give your loved ones some peace of mind. Undertaking this task will allow you to distribute your assets and care for your loved ones financially. Additionally, estate planning will ensure that precious belongings and family heirlooms stay with your loved ones even in the event of your sudden passing. Once you have made your will and other estate planning documents, make sure you review and update them regularly to reflect changes in your finances or family situation. Having an updated estate plan will save your loved ones from having to wade through a complicated and time-consuming legal process in the wake of your passing.

These are some of the reasons why everyone, even you, needs to get involved with estate planning.  Want another way to take care of your loved ones?  Then make sure you have the right life insurance protections in place.  To get the coverage that you need, contact the experts at Stromsoe Insurance Agency in Murrieta, California.

Understanding the Extent of Your Human Life Value

Learn how you can realize the full extent of your human life value.

When determining how much life insurance you need, one important thing to consider is your “human life value.” This value refers to your financial value to your loved ones. While it’s true that you can’t put a number on your worth to your family, you can calculate what your future financial contributions will be. Here’s why it’s important to determine your human life value and how you can do so.

Why is this important?

Knowing your human life value is important when purchasing life insurance because you need an accurate idea of what your loved ones will need if you were to die and were therefore unable to contribute financially to your household. If you do not take the time to accurately calculate your human life value, then you run the risk of leaving your loved ones in a precarious financial situation. If you want to ensure the financial stability of your family in the event of your sudden passing, then you should be sure to take the time to do this well.

How do I determine this value?

First, it’s important to understand that your human life value does not represent the exact amount of life insurance that you should get. This value essentially represents the amount of coverage you would like to provide to replace your lost wages for a set amount of time. This value should be added to the amount of coverage you need to settle your debts, pay for your funeral expenses, and so on to determine the total amount of coverage you want in your policy.

Calculating your human life value requires you to take into account a number of factors, including: your occupation, income, benefits, and so on. Additionally, your age is also a major factor in determining your human life value. For instance, a 40-year old will need more coverage than a 70-year old because the younger you are, the longer your family will have to do without your financial contributions.

This is why determining your human life value is so important in getting the right amount of life insurance coverage.  Do you still have questions regarding your life insurance?  Then don’t hesitate to contact the professionals at Stromsoe Insurance Agency in Murrieta, California.  Our dedicated team is ready to assist you with all your coverage needs today.

Life Insurance for Newlyweds

Here’s why newlyweds should consider getting life insurance.

If you just got married, life insurance is probably one of the last things on your mind.  However, there are some serious reasons why you should consider getting life insurance now that you’re married.  Here are some of the reasons why you should discuss investing in life insurance with your new spouse.

You Don’t Want to Leave Them in Debt

If you were to die suddenly, the financial responsibility for your outstanding debts would fall to your spouse.  While not all debts would transfer over, any shared debts would become their sole responsibility.  By getting life insurance, you can ensure that your benefit is large enough to take care of any of the debts you might leave behind.

Funerals are Expensive

Another reason why you should get life insurance is because your funeral and burial costs could add up very quickly.  With the average funeral costing upwards of $7,000, these expenses are nothing to shake your head at.  Luckily, your life insurance policy can provide coverage for your funeral and burial costs and save your loved one from having to foot the bill.

It Can Offer Them Comfort

Perhaps the most important reason for getting life insurance is that your death benefit could provide your spouse some comfort during a very difficult time.  Not only will your death benefit ensure that your spouse doesn’t fall into debt, but it can also afford them a sense of financial stability.  Oftentimes the money from your policy allows a grieving spouse to take time off work to mourn their loss.

These are some of the reason why you should discuss getting life insurance with your new spouse.  Do you have questions regarding your life insurance coverage?  Don’t hesitate to contact the experts at Stromsoe Insurance Agency.  Located in Murrieta, California, out dedicated team is ready to assist you with all your coverage needs.

Do I Need Life Insurance After Retirement?

Do you need life insurance even after you retire? You may not think so, but here are a few examples of when life insurance may come in handy in your post-workforce years.

Life insurance is meant to financially cover your family in the event of your death. After people retire, most of their family members have already started families of their own and no longer rely on their parents’ income for sustainability. This is a sign to many that life insurance is something they no longer have to pay for. But is that true? Here are ways that life insurance could still come in handy–even after you retire.

Funeral Costs

It’s very expensive to die in this country. While you may not be here to suffer through the funeral process, your family member will. Funeral costs are through the roof, and your life insurance policy can cover this expense and keep your family from reaching deep into their pockets.

Your Remaining Debt

If you still have remaining debt upon your death, it may not disappear, especially if this debt comes from the bank. Your life insurance could help pay off the remaining loans, or even pay them off entirely if your coverage is sufficient.

Special Needs Children

While it is often the case that children depend on their parents until they’ve graduated college, there are situations where your children may depend their entire lives on your aid. Children with special needs will need to get the right coverage.

Life insurance often goes to those that work and have families in their early stage. But that’s not the case for everyone, and may not be the case for you. For that kind of knowledge and service, contact Stromsoe Insurance Agency. We’re dedicated to helping families across California get the life insurance policies they deserve!

Ask These Life Insurance Questions Before You Buy!

These life insurance questions are important to ask before you pick your policy.

Life insurance is important. Just as important as buying a policy is making sure you choose the right one. How, exactly, do you do that? By asking the right questions. Pose these life insurance questions to your agent before you buy a policy to make sure you’re choosing the right one for your family.

What type of policy makes the most sense for me?

Your life insurance agent will be able to show you how term or whole life insurance policies work, and which one is likely the best fit. A term policy is great if you just want to cover a certain season of life (e.g. until your mortgage is paid off or your kids graduate college) as they’re more affordable and expire after the term is up. A whole policy is best if you want your policy to build cash value and last your lifetime.

What else can I get out of my policy?

The majority of life insurance policies allow you to add riders, which can help you do things like pay your policy premiums if you become disabled or receive a lump sum payment if you become terminally ill.

Am I buying enough?

All too many people expect that Social Security will cover their income replacement for their families if they pass away. Actually, though, Social Security is only paid out if your surviving spouse is over 60 or your kids are under 18. If that’s not you, turn to life insurance to protect your family from financial hardship.

Now that you know to ask the right life insurance questions, it’s important that you ask them of someone who can give you the right answers. For that kind of knowledge and service, contact Stromsoe Insurance Agency. We’re dedicated to helping families across California get the life insurance policies they deserve!

Smokers’ Habits Raise Their Life Insurance Rates

If you’re a smoker, your California life insurance policy will be different.

When you apply for a life insurance policy, you will be asked a handful of questions about your medical history. A question that will most likely crop up is if you use or if you have previously used tobacco or nicotine products, along with if you have stopped and why. The answers to these questions will determine your policy and rate. If you’re looking for a reason to quit smoking, it could be the high life insurance premiums!

Testing, Testing

If you have recently quit smoking and have been free of tobacco for at least three to five years, companies will typically charge you the same rate for life insurance as a non-smoker. If you buy a higher amount of coverage, typically around $100,000 or above, the company will collect a saliva or urine sample to test for cotinine. Once nicotine is absorbed into the body, it’s converted into cotinine. If you are currently using a nicotine patch or gum recently, you will test positive which will affect your test results.

Time Matters

The mortality rate for smokers is much higher than for non-smokers, but there are ways to combat the high life insurance rates that come with that high mortality rate. For example, if you have smoked for five years but have been tobacco-free for ten, the risk is lower than if you have smoked for fifty years but have tobacco-free for five. In the latter situation, the exposure has been too great to counteract the length of time since you quit smoking. Insurance is all about risk, and smoking is proven to cause many types of cancer. As a result, recent or long-time smokers who are more likely to suffer with health issues and have a higher risk of death will pay more for coverage.

Fine Details

E-cigarettes, patches, gum, and hookah are all alternative nicotine delivery systems. Insurance companies ask about your nicotine use as all of these practices fall under the umbrella of bringing nicotine into your body. As a precaution, it is best not to skew the truth as the insurance company will find out your smoking habits.

After your life insurance policy is issued, you should be open and honest with your insurer should your plans or lifestyle change. As a smoker, it is possible to acquire a reasonable, adequately covered life insurance policy. Contact Stromsoe Insurance Agency for your insurance needs in California.

Do I Really Need Life Insurance? Yes! Here’s Why!

Life Insurance Protection For Future Security

Life insurance is one of the most important financial safeguards an individual can have. Whether you have just jumpstarted your career or are living happily with financial stability today, life insurance provides your loved ones with security for the future. To further convince you of its importance, gathered are just a few of the reasons why you need life insurance protection:

  • Experiencing a death in the family is one of the most overwhelming, sorrowful moments we go through. However, this experience is eased significantly when you have a life insurance policy that will provide your loved ones with financial assistance during this difficult time.
  • If sending your child to college is one of your top aspirations, you can utilize a term life insurance policy to guarantee that your wish is granted. These policies can be set for a certain time limit so that your needs can be fulfilled in immediate time.
  • Not many people realize how expensive funerals can be until they are faced with the unfortunate. To take this burden off of the plate of your loved ones, utilize death expensive coverage that a life insurance policy provides.
  • If you plan to leave an inheritance to your heirs, it is important that you calculate the cost of inheritance taxes. However, if you have a life insurance policy, your coverage will take care of those expenses.

If you are ready to attain financial stability for the future, please do not hesitate to give us a call to discuss your life insurance needs. With so many different types of life insurance policies to choose from, making the purchase can be confusing and overwhelming. We promise to be your guiding hand and help you make an informed decision between a term life insurance policy and a whole life insurance policy.

Contact Stromsoe Insurance Agency for all of your California life insurance needs.

Does your Life Insurance Cover your Mortgage?

In the event of a tragedy, it is important to protect your mortgage with term life insurance. In the horrible event of your sudden passing, the last thing you want is to have your family dealing with financial burdens. Preparing your life insurance policy in advance is the smartest way to allow your family to grieve without financial concern.

Term life insurance is the most affordable way to get life insurance coverage, providing protection for a specific period or “term.” This allows the policy holder to drop or continue the coverage at their convenience.

If you answer no to the question, “Could your family make mortgage payments without you?” then it is a good idea to protect your mortgage with term life insurance. Whether you are planning on purchasing a new home or refinancing your existing mortgage, this is the perfect time for you to protect your mortgage. Term life insurance can be used to pay funeral costs, credit card bills, childcare, college tuition, and your mortgage in the event of a tragedy. With term life insurance, your family can maintain their lifestyle and use the term life insurance coverage as a form of income replacement.

If there is anyone who relies on your income for financial support, then you need life insurance. Not only does life insurance provide financial protection for your family but it pays for your final expenses as well. It is hard to think about what would happen in the case of your sudden passing, but it is important to ask yourself whether or not your family could financially survive if the worst were to happen.

The Stromsie Insurance Total Protection Team strives to give you the best services and prices. Contact the Stromsie Insurance Total Protection Team to get a quote on life insurance today!