About Life Insurance
The primary reason for life insurance is to provide income replacement and support for your loved ones in the event of your death. Once you've decided you need life insurance, the next step is to decide how much you need. It’s a very personal decision, but Carl Puma Agency can help you make an informed one.
There are two categories of life insurance:
- • Term Life Insruance
- • Permanent Insruance
Term life policies are sold for a fixed number of years according to your individual needs. The premium is calculated from historical risk characteristic data (age, health, gender, etc.) and is paid at the same level throughout the term. If you die before the end of the term, your designated beneficiary receives the benefit. When the policy term ends, you generally have the option to renew, but at a higher premium (since you’re older and have a higher risk factor).
Permanent life insurance provides coverage until the policyholder dies, and can be canceled or surrendered (for a fee). It builds a cash value through investments which determine the type of permanent insurance it is - whole life or universal life.
A general rule of thumb is that your life insurance should cover at least six times your annual income. But in determining what is best for you, you'll also want to consider other obligations you may have and whether you want them to be completely or partially paid upon your death. Such expenses include your mortgage, outstanding debts and future education expenses for your children.
Life insurance is the foundation of your estate plan and Carl Puma Agency knows the right questions to ask so we can lead you to the right products. Our life insurance carriers are among the top providers in the nation - we’ll make sure the fit is right.