5 Easy Steps for Buying Life Insurance

Date: March 20, 2024 Author: Rinehart Insurance

Life insurance is a crucial tool that can provide peace of mind and security for individuals and their loved ones in times of need. It serves as a financial safety net, ensuring that beneficiaries are financially supported in the event of the policyholder’s death.

If you’re considering buying life insurance, these five tips may help you choose a policy:

1) Assess your current financial situation and needs.
Start with identifying your financial obligations (e.g., mortgage and debts) and consider your family’s lifestyle and future expenses. While assessing your needs, you should also consider how many people depend financially on you. This foundational step will help you calculate the coverage amount needed to secure your loved ones financially.

2) Evaluate policy types.
It’s important to understand the different kinds of life insurance policies available, such as term, whole, universal and variable life insurance. You’ll want to evaluate each type based on your financial goals and coverage requirements. A financial advisor may offer personalized guidance.

3) Determine the policy duration.
Part of choosing the policy type is deciding on the length of coverage needed based on your financial goals and life stage. Do you need short-term coverage for specific needs, or do you need lifelong for comprehensive protection?

4) Shop around.
To best estimate affordability, you can obtain quotes from multiple insurance providers and compare premiums, coverage amounts and cash values. It comes down to finding a policy that fits comfortably within your budget while offering adequate protection. Looking at options offered through your employer is a good place to start. However, you can also work with a personal lines insurance broker or a life insurance and annuities provider.

5) Review policy terms and conditions.
As with any contract, it’s important to read the policy terms, including exclusions and limitations.

Once a life insurance policy is purchased, inform your beneficiaries about policy copies and any specifics related to the death benefit. If possible, store your life insurance documents so you and your beneficiaries can easily access them.

This blog is not intended to be financial guidance; it’s best to connect with a financial advisor about life insurance. A licensed insurance broker can help point you toward the right policy for you and your family’s needs. Contact us for more information.

How To Determine The Amount Of Life Insurance You Need

Date: September 29, 2021 Author: Rinehart Insurance

Life insurance is not a fun topic to think or talk about. However, it is a necessary one. Do you have loved ones that depend on you financially? Do you have college loans or a mortgage that you do not want you family members to have to take over? Life insurance is about protecting those you love in the event that something happens to you. Your designated beneficiary would collect a financial benefit upon your death.

Life insurance can be confusing, but that’s where we come in. There are numerous types of insurance. Term, Whole Life, Universal Life. Not all plans may be the best fit for your needs. When looking at life insurance you want to make sure to get the best rate but also the best fit for your family’s needs.

Click here to learn more about the types of life insurance.

Once you determine that you need it and what type you want, how to you determine the amount of life insurance you need?

How Much To Buy?

A few common factors to keep in mind when determining the amount of life insurance you need are:

What debts do you have?
What is your income?
Do you want to pay for a child or children’s college education?
What expenses will continue even after you are gone?

Many people decide based on an income replacement calculation, between 5 and 10 times the amount of your current income. Think about your personal circumstances. Is your income the sole income for your household? Are there other expenses, such as college tuition, that may arise in the future? Don’t forget to include potential medical and funeral costs. One goal of life insurance is to ensure your family does not get stuck with bills, debts or expenses that they cannot afford.

Click here for a life insurance calculator.

If you have people that depend on you for financial support, it’s important to make an educated decision about life insurance options. Contact your agent today to discuss life insurance and your family’s needs.

Disability Insurance; What You Need To Know

Date: August 4, 2021 Author: Rinehart Insurance

For most adults having a job and making a paycheck is crucial to make sure you have a roof over your head and food on the table. Unless you are a lottery winner or have a large savings, you most valuable asset is your ability to earn an income. But what happens when you are unable to work? That’s where disability insurance comes in.

Disability insurance is coverage that provides you with income protection, should you lose time on the job due to an injury or illness.

Is there different types of disability insurance?

Yes, the 2 most common are Short Term Disability (STD) and Long Term Disability (LTD) Insurance.

Short Term Disability (STD) Insurance coverage is designed to cover you for a short period of time. Coverage usually starts within 1 to 15 days of the injury or sickness and typically lasts for about 10 to 26 weeks. STD coverage allows you to receive a fixed weekly amount or a set percentage of your income.
Long Term Disability (LTD) Insurance coverage is designed to cover you for a longer period of time. Coverage usually starts 3 to 6 months after the injury or sickness begins. The length of coverage varies, but can range from 2 to 10 years or until you reach age 65. LTD insurance pays a set percentage of your regular income after a specific waiting period. Most LTD plans are designed to start after the STD plan has been exhausted.

You can purchase one or both to fit your specific needs.

Why is it important?

The risk of disability is greater than most employees realize. When you become disabled and loose time at work, your source of income is lost. Nearly 1/3 of employees will miss more than one month of pay due to injury or illness. In addition to lost income, you are likely to experience an increase in medical expenses due to your injury or illness.

Disability insurance can be purchased on your own or sometimes through your employer. If you and your family count on your income to pay bills disability insurance is something you should consider. Let the professionals at Rinehart Insurance help you select a plan that best fits your needs.

Click Here to contact your agent today.

What All Newlyweds Need To Know About Insurance

Date: January 29, 2020 Author: Rinehart Insurance

Choosing insurance may not be as romantic as deciding where to go on your honeymoon, but it is one of the most important things you can do as newlyweds. Although most couples are aware of the need to readdress their insurance needs when they get married, there is a disconnect between that awareness and whether they take action.

Use the considerations in this article as a way to start a discussion about your insurance needs. Rinehart, Walters & Danner can then help you narrow down your options.

Auto Insurance

If you and your spouse have separate auto insurance policies, it may be wise to combine them. Get quotes from each of your carriers, and shop around to see if any others offer multivehicle discounts.

Life Insurance

Newlyweds who both have jobs and are not yet dependent on their spouse’s income may not see the need for life insurance. However, as they build their lives together, that dependency grows. If you’re young and healthy, you can benefit from getting life insurance early in your marriage. Typically, you can lock in better rates than if you were older. Remember that the older you get, the higher the rates, so don’t put it off for too long.

While life insurance is less urgent for young couples who are both working and don’t have children, it is important for newlyweds with only one working spouse or those who have children from a previous marriage to purchase life insurance early in their marriage.

If you already had life insurance prior to tying the knot, don’t forget to add your new spouse as a beneficiary.

Disability Insurance

Young people are more likely to become disabled than die prematurely. In fact, more than half of Americans identified as disabled are in their working years—between ages 18 and 64— according to the Council for Disability Awareness.

Disability insurance is historically inexpensive, and can pay you between 50%-70% of your regular monthly income if an accident, illness or injury prevents you from being able to work. If your employer doesn’t offer disability insurance, you can purchase it on your own. This coverage can be critical for you and your loved ones.

Health Insurance

Don’t make the mistake of declining health insurance, even if you and your spouse are healthy. An illness or emergency can cause newlyweds financial hardship that could have been prevented with health insurance. If you and your spouse both have health insurance through your employers, you can maintain separate plans, but it may be cheaper to be on the same plan. Doing so can help you reach your annual deductible more quickly.

Certain life events, such as marriage, allow you to join your spouse’s plan as long as it is within the required time frame. If you decide to share a plan, compare both employers’ coverage and costs to determine which plan best fits your health needs and finances. Be sure to consider each plan’s deductibles, coinsurance, copayments, coverage limits, prescription coverage and choice of health care providers. Remember that if you have a preferred doctor, you’ll want to make sure he or she is in your network.

Don’t panic if employer-sponsored health insurance is not an option for you. Coverage is available to everyone through the Affordable Care Act. You can visit https://www.HealthCare.gov to review and select a plan through the health insurance marketplace, either during open enrollment or within 60 days of getting married. Or, you can contact one of our health insurance specialist and they can assist you with this process. Timing is restrictive so it is important you check into this promptly.

Renters Insurance

If you rent your living space, you should consider renters insurance to cover the value of your possessions. If you already have renters insurance, don’t forget that you have more to lose now that you have combined belongings, such as furniture, electronics and jewelry. Consider increasing your limits on personal property coverage, which pays to replace or repair items that are stolen or damaged.

Homeowners Insurance

Homeowners insurance is similar to renters insurance, but it covers more than just your possessions. It also covers your home in case of fire, theft or other perils. Both renters insurance and homeowners insurance also provide liability coverage.

Shop Around for Coverage

Addressing your insurance needs early provides a solid foundation for your marriage. Review your financial situation and objectives with your spouse. Then contact Rinehart, Walters & Danner to help you find sufficient coverage within your budget.