Many people typically have some sort of car insurance policy, a health insurance policy for their entire family and, sometimes, home or renter’s insurance for their place of residence. Most of the time, these insurance policies are considered necessary assets for improving our quality of life. The thing is, there’s something missing from those selected insurance policies.
Life insurance. Life insurance, even though some people don’t realize it, is much more important than you think. It’s not something that eager insurance agents sell to you on a whim just because they can—it’s an entire insurance policy that’s designed to protect your life and what happens after it.
Life insurance is known as a type of insurance contract between you, a policyholder, and your insurance provider, otherwise known as an insurer.
Your insurance company, as an insurer, ‘promises’ that they’ll pay a designated deficiency a sum of money – or benefits – upon the death of the insured person, in accordance with their contract. The insured person could be you or another person within your family, generally the person who’s most responsible for carrying most of the financial burdens within the family.
Depending on the type of contract that you have with your insurance provider, your beneficiary can receive benefits when other events like terminal illnesses and/or critical illnesses happen to the insured party.
Like many insurance policies, the policyholder – yourself – pays a premium, either on a regular basis or as a lump sum payment. Other expenses, which can include funeral expenses, can be included in the benefits, as well.
Do you need…?
So, do you need life insurance?
To answer that question, ask yourself this question: are you the sole income provider in your household? Anyone who provides full or even partial financial support for their households needs to buy life insurance, naming their dependents as the beneficiaries. In most cases, individuals insure themselves with a life insurance policy, later naming their spouse and/or children as their beneficiaries.
Even if someone doesn’t have a family or spouse, they can use life insurance to leave their next-of-kin with enough coverage to cover costs related to their funeral expenses and more. So, life insurance isn’t just limited to a single person or people with families—anyone who needs to protect themselves, in the case of their lives being threatened, needs life insurance.
What life insurance?
In the state of Florida, and the rest of the United States, there are three main types of life insurance policies.
Term life insurance mainly covers life insurance during an allotted time period, such as getting a 30 year coverage plan. If you pass away during that time, your beneficiaries will be entitled to receiving a payout. The policy you choose to purchase generally dictates what your beneficiaries will receive.
Whole life insurance is generally a hybrid insurance and ‘conservative investment plan,’ with higher insurance premiums and lower benefits. These policies generally cover a person’s entire life, instead of assigned term of their life, enabling your beneficiaries to always receive a payout when you pass. Most life insurance experts, however, recommend to avoid purchasing a whole life insurance policy, as it can get expensive over time.
Universal life insurance combines the best of term life and whole life insurance, making so that it covers your entire life without the high premiums of whole life insurance. The annual cost of this insurance plan is generally based on your renewable term life insurance rate.
In Florida, life insurance isn’t regulated by the state’s Departments of Insurance in ways that they regulate other forms of insurance like auto or health insurance. Thanks to that, Florida residents more or less have more control over the type of life insurance policy they can get.
According to Florida….
According to facts about life expectancy within the state of Florida, Florida is ‘ranked 21st out of 51 states, including the District of Columbia, in life expectancy for an average of about 77 years.’
About 900 people between the ages of 55 and 64 pass away each year; that number nearly doubles to 1,900 for those between ages 65 and 74, while over 4,000 people between ages 75 and 84 pass every year. Those numbers are out of every 100,000 resident who currently lives in the state.
So, what does this mean? It’s simple: people in Florida pass away in their later years, during a time where they might not have adequate funds to pay for funeral costs and the like. Having life insurance, at those ages, can help families essentially lift the burden of caring for a loved one’s death without the consequences of the expenses that can accumulate from the occasion.
In Florida, you are actually protected – as a consumer – when you’re about to or have purchased a life insurance policy. As a part of the specified State Insurance Code of Florida, the state allows consumers to exercise their rights to life insurance – and other forms of insurance – within the state.
As an example, many Florida life insurance providers will have a ‘Grade Period,’ in accordance with the code, This enables policyholders to miss their monthly premium and not have their policy canceled, as long as they keep their account current within 30 days.
If you’ve purchase a plan that doesn’t fit your needs, Florida’s ‘Free Look’ provision allows you to essentially select another and more appropriate life insurance policy, later cancelling the other long after you’ve signed the contract.
So, if you’re planning to shop the latest Florida life insurance quotes, you don’t have to worry too much about choosing the ‘wrong’ policy, as the state has provisions in place to make selecting the ‘right’ policy that much easier.
What if you want to save money on your Florida life insurance policy? Most experts will warn and suggest that it’s best to pick the lowest of your Florida life insurance quotes, as most people often choose what they think is best.
But remember—when you’re shopping for life insurance, it’s not always the aesthetically best policy that works, but the one that successfully fits all aspects of your life in the end.