Category: Life Insurance

The Lasting Gift of Life Insurance

Life insurance is one of the most enduring gestures of care you can extend to your loved ones. Although it may seem like another monthly expense, its financial security and peace make the cost worthwhile.

Coverage for Annual Financial Losses

Life insurance becomes crucial if you have dependents, such as a spouse and children, who rely on your salary. In the unfortunate event of your untimely demise, these funds can be utilized to cover the annual expenses that your family expected while you were alive and working. This money can help sustain necessities such as mortgage payments and utilities.

Eliminate Debt

Since a life insurance policy can provide your beneficiaries with a substantial financial lump sum, this money can be used to eradicate any lingering debts. Anything outstanding, including mortgage, car payments, or other inheritable debts, can be cleared with these funds. Even medical bills accrued leading up to your demise can be covered. This facilitates your loved ones to enjoy the assets you left behind fully.

Coverage of Tuition Costs

As a parent or spouse, you may have earmarked funds to cover your dependents’ college tuition fees. A life insurance policy enables them to create a reserve for their education when the time comes. Based on the number of dependents, including your spouse, you can designate sufficient amounts to cover their education as you had intended.

Inheritance

It is a common wish to leave a financial legacy for loved ones. A life insurance policy can be used to bestow them with the funds you envisioned they would need to start their life on a secure footing to help them avoid excessive debt.

If you are in the Pooler, GA, area and wish to discuss your life insurance options, contact Covenant Insurance today for more information.

How to Avoid Denials of Life Insurance Claims

No one wants to experience the disappointment of having a life insurance claim denied. Unfortunately, this distressing situation befalls beneficiaries worldwide every year. Life insurance policies, when well-managed, can be a financial lifesaver following the loss of a loved one. Here at Covenant Insurance, Pooler, GA, we care about you, which is why we want to help you avoid such disappointment. Below are the most common reasons life insurance policies are denied and tips to ensure your policy pays out according to plan.

1. Violations within the Contestability Period

Numerous insurance policies feature a two-year contestability period. During this span, the insurer can contest the claim for just about any valid reason. For example, if an applicant provided inaccurate information during application and unfortunately dies within this period, the claim may be denied. Therefore, honesty and accuracy during application procedures are vital, even if the death was unrelated to the shared information.

2. Uncovered Cause of Death

Life insurance policies often come with some exclusions. These typically include the cause of death. If the policyholder dies while engaging in high-risk activities like SCUBA diving, skydiving, or the like, the claim may be denied. Frequently, such exclusions are limited to death by suicide. At Covenant Insurance, Pooler, GA, we can help you understand the necessary exclusions related to your policy.

3. Unpaid Premiums

Another typical reason for claim denial is the non-payment of premiums. If the policyholder dies with overdue premiums, the insurance company is likely to deny the claim. Consequently, it is essential to maintain punctual payment of your policy premiums.

Avoid Life Insurance Claim Denial

If you have questions about your life insurance policy or need assistance purchasing one, we at Covenant Insurance, Pooler, GA, are here for you.

If you live in or near Pooler, GA and have considered purchasing a life insurance policy for the first time, you may become confused by the different terms associated with each type. Our agents at Covenant Insurance can help clear up what each term means and guide you with selecting the policy that meets your needs.

Most first-time policy buyers consider one of the following three types:

Term Life Insurance

Term life insurance is the most popular type. It’s also the least expensive. Typically, companies sell policies that last for a specific length, usually between 10 and 30  years, although other terms are available. Most people buy term life insurance to cover their working years or the length of a mortgage. During the policy period, which continues until the term ends or your death, you’ll pay premiums. If the latter occurs, your spouse or other beneficiaries will receive a payout, but if you survive the term, no payout will occur. 

Whole Life Insurance

This permanent option is popular because it is simple and acts like a cash-deferred savings account. The guaranteed death benefit and cash value earn interest over time. Portions of your premium go toward maintaining the death benefit, while other portions go toward the increasing cash value. These plans can cover endowments, estate plans, and heirs with disabilities.

Universal Life Insurance

With this permanent yet flexible life insurance policy, you can increase or decrease the amount spent on premiums. These policies can become complicated, but they let you adjust them according to your needs. Choose this option if you want flexibility.

Which is the Best for Me?

Your life insurance needs can change over time. Covenant Insurance can help you select the type and policy that will work for you in the greater Pooler, GA area.

Covenant Insurance, serving the greater Pooler, GA area, can help you with all of your life insurance needs. One of the misconceptions that we often hear people say pertaining to life insurance is that once you have a policy, you never need to worry about it again. However, your life can change and your current life insurance policy may no longer meet your needs and may need to be increased or decreased. This may leave you wondering how frequently you should reassess your life insurance policy. 

Here are some times when to reassess your life insurance:

After a Major Life Change

Major life changes should cause you to sit back and reassess your life insurance policy and determine if your current policy meets your needs. Major life changes include getting married, having a new child, or purchasing a new home. Your life insurance policy will likely need to increase after these changes, as you want to ensure your family is protected in the event you unexpectedly pass away, and that there is enough money to financially cover your family. 

When Your Income Drastically Changes

Another time when you will want to reassess your current life insurance policy is when your income changes. If your income goes up significantly or decreases significantly, you may need to take another look at your life insurance policy. Many people lower their coverage amount once they retire or increase it once they make more money. 

Give Us A Call

Your current life insurance may not work for you throughout the course of your life. Your life may change and you may find that you need to increase or decrease your life insurance policy based on those major changes in your life. Here at Covenant Insurance, we can help residents in the greater Pooler, GA area get the life insurance policies they need. Reach out to us today to get started.