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(Almost) Everything you need to know about life insurance



Your life is a long journey, and you spend several years traveling to a large mountain. When you finally get there, you climb until you can look down and enjoy the view.

Unfortunately, you do not always reach the top. That’s why you should not continue your search without “packing” some life insurance.

Once you have left the picture, life insurance can help your loved ones cover:

  • Mortgages
  • Car payments
  • Student loan debt
  • Monthly bills
  • Final expenses
  • And more!

Your map – Fill in answers to life insurance


You are eager to leave and cover more land. Before you go, sit down and read this life insurance card.


This is how life insurance works


This is how life insurance works:

  • You apply for coverage.
  • You take a quick medical examination depending on which plan you choose.
  • You pay the life insurance company for coverage if you are approved.
  • You name one or more beneficiaries.
  • Beneficiaries receive a payment (also known as a benefit) after you die.


How to choose beneficiaries


Think about who needs the benefit after you are gone. Think of your spouse, partner, children, grandchildren, or a charity.

Mention more than one beneficiary if one of them passes away before doing so.

Minors cannot receive direct life insurance benefits. Enter a trust as a beneficiary if you want a minor to receive the payment. In this way, a guardian will review the money until the minor turns 1

8 years old.

How much coverage do you need (no magic number)


Some experts say that you should have 10 to 12 times your annual income in life insurance. However, there is no real magic number.

First calculate how much you pay for:

Combine your financial obligations with how much you want to leave behind. It should give you a solid ballpark.

Your employer offers life insurance. Is it enough?


Does your employer provide enough life insurance to cover one or two years of your salary? It’s a good start, but what happens after you leave your job?

Your group life insurance will either:

  • Drop, leave you without coverage, or;
  • Continue if you can turn your plan into a personal policy.

It is legal to have more than one life insurance policy. Trust an independent agent to help you choose the right plan!

Survive the forest – your younger years


Your twenties turn out to be a journey through a confusing forest. You make a torch and navigate around turns, turns and tall trees.

You try not to get lost in the “big” questions:

  • What should I do with the rest of my life?
  • Can I survive the student loan debt?
  • Should I start with a side dish?

When you are young and single, stick to your sense of direction with a backup plan: life insurance.


A definition of “single”


From a social perspective, “single” can mean:

  • You are not in a relationship or looking for one.
  • You date, but not seriously.

From a legal perspective, “single” means you are not married.

Light on the wallet


44% of millennials overestimate the cost of life insurance by 500%. A Pekin insurance agent will help you find the right plan for your budget.


Your family history


Does your family illness include cancer or heart disease? If so, you should consider applying for life insurance early in life.

Young, healthy applicants get lower rates that rise as you age.

College costs continue to climb


University costs have increased almost eight times faster than the wage increase between 1989 and 2016. Tuition fees and fees will continue to rise.

Do you need proof? Check out these stats from College Board College Price Report:

  • $ 21,950: average state tuition and fees for the public four-year sector
  • $ 26,820: average out-of-state tuition and fees for the public four-year sector
  • $ 36,880: average tuition and fees for private four-year institutions

Business School vs. College


The School of Business offers lower education and more job-specific education. In addition, most of their programs take less time to complete.

Business school degrees can lead to these careers:

  • Welder
  • Chef
  • Graphic designer
  • Plumber
  • Electrician

Still, the average business school costs $ 33,000, according to Hub & Spoke.

Where do the student loans go?


Who would take care of your student debt if you die before you pay it back? Federal student loan debt is usually canceled when a person dies before being paid off.

Private student loans do not work that way. A co-signatory would pay off the remaining balance in the worst case.

Think of a lifetime policy as a backup plan for your college debt. With term life, you have coverage for a certain period of time such as 10 years.

Lifetime protection has two purposes:

  • It creates an affordable financial plan.
  • It can protect your loved ones if they inherit your debt.

Climbing on the foot – forming a family


You thought you would never get through the woods in your younger years. But you did it!

You picked up a travel companion along the way as well. Now you have the foot to climb and new challenges to take on.

This is how life insurance companies can offer help through this part of your assignment.

Your home costs add up (and up and up)


The average monthly mortgage payment falls somewhere between $ 1,022 and $ 1,505. That’s $ 12,264- $ 18,060 per year.

The cost of maintaining your home depends on:

  • Where you live and the weather in your area
  • The age of your house
  • How many pets do you have:
  • You may need to change the filter and carpet more often.
  • How many children do you have:
  • Children have been known to paint on walls and throw baseballs through windows.

You need to keep the electricity, water and other tools running as well.

Move.org says average energy costs in the US a total of $ 398.24 per month:

  • El: $ 110.76
  • Natural gas: $ 72.10
  • Water: $ 70.39
  • Rubbish / recycling: $ 14
  • Internet: $ 60
  • Cable TV: $ 85

Would your family be able to cover the mortgage and monthly expenses if you left the picture?

Kindergartens can be more expensive than college


Child Aware of America says childcare costs more than college education in 28 states. Their study includes center-based kindergarten and family-based care.

It does not end there. Over 70% of families spend more than 10% of their income on children, according to the Care.com 2019 Cost of Care Survey.

Think about what your family would do without you. It’s not a happy thought, but it’s worth considering.

This is where life insurance comes in. It helps your loved ones pay for ongoing education and development, whether it is kindergarten or college.

From clunkers to luxury vehicles


Nerdwallet says that $ 8,649 is the average cost of ownership of vehicles running 15,000 miles per year.

Even if your kids run family hand-me-downs, someone has to pay for:

  • Gas
  • Registration and fees
  • Car insurance
  • Maintenance and repairs

The good news: life insurance can cover the cost of vehicle ownership.

The Pitfalls of Crowdfunded Funerals


Take a look at these average funeral costs from National Funeral Directors Association (NFDA):

  • $ 6,585 – cremation
  • $ 8,755 – traditional funeral with a cemetery vault

You can pay for final expenses with life insurance, and it’s a good way to avoid a publicly funded funeral.

With a crowdfunded funeral, someone in your family would create an online fundraiser to help you pay your final expenses.

Doing so would put financial pressure on your loved ones. In addition, there is an opportunity not to hit the target.

Stay-at-home parents also need a life insurance policy


According to lön.coma housewife’s work would receive a salary of $ 178,201 due to the roles she fills:

  • Academic advisor
  • Auditor
  • Chef
  • Dietician
  • Construction director
  • Housekeeper
  • Laundry manager
  • Nurse
  • Photographer
  • Teacher
  • And more

It may not cost you exactly $ 178,201 to replace these services, but it would not be cheap either.

The years go by and you reach the foot of the mountain. We hate to let you hang, but we will let you know how the story ends later in 2020!

For now, contact your local Pekin Insurance agent to start the life insurance conversation!




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