Life Insurance

At KMK, we know it’s normal to worry about your family and overall life path. You may be asking, “what happens to my family when something happens to me,” or “will I have enough to save for retirement?” Luckily, the professional agents at KMK Insurance know the right questions to ask to ensure you have sufficient life insurance coverage for all stages of your life. Whether you’re worried about covering funeral costs or you want to supplement your retirement savings – we offer knowledgeable agents with the tools to help you reach your goals. Read on for more details about available life insurance options!

Why buy life insurance?

This is a question that many people seem to be asking, and it’s a fair one. Life insurance is an investment, and you want to make sure you’re getting everything you want out of this investment. Fortunately, the benefits of life insurance can help with a variety of situations and scenarios, even ones that you didn’t plan for. The two main reasons to buy a life policy are:

1. Death Benefit – a death benefit is a lump sum of money provided to the beneficiaries of a life insurance policy when the insured has deceased. This money can be used to pay for a variety of things including funeral expenses, a mortgage, education expenses and more.
2. Cash Value – some policies accrue what’s called a “cash value.” This cash value comes from a small portion of the premium payments you make each month. Policies that accrue a cash value serve as effective savings vehicles as part of your larger financial plan.

Types of Life Insurance

While there are two main reasons to buy life insurance, there is a litany of different policies that can help you reach your financial goals. Whether you’re helping save for college or planning for your family’s future, it’s good to know that KMK understands the pros and cons of each policy, which helps you make the right decision for you and your family. The different types of policies include:

• Term Insurance – this is a policy that is bought for a certain period of time, or term, and provides a death benefit to the beneficiaries of the policy if the policyholder dies within the term of the policy. The main types of term insurance include level term, decreasing term and increasing term.
• Permanent Insurance – these policies provide a death benefit for the entire life of the policyholder, as long as premiums continue to be paid. Additionally, these policies can include a cash value option.
• Whole Life Insurance – this is a type of permanent insurance that provides lifetime coverage to the policyholder, includes fixed-rate premiums, accumulates a cash value and may pay dividends. Whole life policies are available in a variety of variations including Modified Premium Policies, Modified Coverage Policies, Limited Payment Whole Life, Endowment Life, Joint Whole Life, Last Survivor Life, Family Life, Single-Premium Life, etc.
• Universal Life – universal life is another variation of a whole life insurance policy, but it comes with investment features. Other features of universal life include flexible premiums, guaranteed interest accrual, available policy loans and cash withdrawals, and flexible death benefit. Remember; this policy requires you to actively monitor and participate in progress.
• Transitional Life Insurance – this is a new concept in life insurance that provides coverage that changes depending on where you are in your life’s journey. In fact, transitional life insurance provides ultimate flexibility, allowing you to choose your term length, initial coverage amount and final, paid-up amount that’s guaranteed. With Hybrid Terms or Whole Life insurance that can provide a high insurance benefit for a period of 20 or 30 years or even until you reach age 65. After your term limit, coverage doesn’t go away – the benefit automatically switches to a smaller, paid-up amount that’s guaranteed as long as you live.
  • Single-Premium Whole Life – Don’t deny yourself the simple pleasures of retirement to take care of your family. With a single-premium whole life policy, you pay a lump sum up front and receive a guaranteed death benefit for life. Additionally, these policies allow for added flexibility when you need money later in life including tax-free access to the death benefit for your family and the ability to withdraw money for terminal illness and long-term care.
  • Simplified-Issue Graded Whole Life – this type of policy helps provide life insurance coverage to those that are in less-than-perfect health. It’s easy to apply for, there’s no medical exam required, rates are guaranteed for life, and you get the permanent protection that you need. Get covered for up to $25,000 – ask us how!
  • Long-Term Care Rider – Make sure your medical needs are covered as you get older. Long-term care rider allow you to designate a portion of your death benefit to pay for long-term care expenses. Once you’ve received care that qualifies as long-term care expenses, your out-of-pocket costs will be reimbursed up to $17,500/month.

Please contact us with your questions about our insurance products or read this informational guide.

How much life insurance do I need?

Insurance isn’t a one-size-fits-all industry. In fact, the amount of life insurance that you should purchase is based on a variety of different factors that are unique to you. It’s important to consult a professional when making any decisions about life insurance or investments. However, the amount of insurance you should by could be based on:

• Age
• Income
• Occupation
• Health
• Family Size
• Projected Expenses
• Etc.

While it’s important to talk specifics with one of our agents, you can gain a good idea of how much you need in life insurance by making the following calculations:

Add: Your salary (multiplied by the number of years the income would need to be replaced) + mortgage + other debts/expenses + college costs (for any children) + funeral expenses + any additional expenses.

Subtract: Any liquid assets you have such as savings accounts, existing savings vehicles, and more.

The number you are left with should be a pretty good rough estimate to start your search for life insurance. Call us to complete the process with a trained professional that’s focused on what’s best for you!