Life Insurance Lake Oswego
If buying life insurance is on your radar, taking the time to understand how it all works before making a decision will save you time and money. Let the experts at Schmidt Insurance Group in Lake Oswego provide the information you need that will help you choose the best coverage.
Schmidt Insurance Group opened its doors in 2019 with a goal of making insurance easy while providing exceptional customer service. We proudly serve Lake Oswego, the local Portland area, and the entire states of Oregon and Washington. We are specially trained in high-net-worth households and can help you find the exact amount of coverage you need.
What is Life Insurance?
Life insurance is an agreement between you and a life insurance company that, in exchange for paying them monthly or quarterly premiums, agrees to pay your beneficiary a set amount of money in the event of your death.
It’s like a security blanket that can help financially protect the people you love most. Life insurance can pay for funeral expenses and medical bills, cover monthly expenses like rent and mortgage payments, pay off debts like credit card bills, fund a child’s future education, and cover other expenses that might come up after you pass away.
There are two main types of life insurance policies to consider:
Term life insurance: This is the simplest type of life insurance to understand, and usually the least expensive because it has an expiration date. Term life insurance provides protection for a set period of time, or a “term.”
You, the policyholder, typically choose a term of 10, 20 or 30 years, and the cost, or premium, stays the same throughout the term. If you die within the term, your beneficiaries receive the payout, called the death benefit. Once the term ends, so does your coverage.
Most people choose term life insurance when they only need life insurance to replace their income over a certain period, such as during the years they’re raising children or paying off a mortgage. Ideally, your family’s need for life insurance will end about the time the term expires:
Whole or permanent life insurance: Whole, or “permanent,” life insurance lasts for a lifetime (as long as you pay the required premiums). From each payment you make, a portion is set aside in an investment account and becomes your policy’s “cash value.” Upon your death, a guaranteed benefit is paid to your designated beneficiary.
The cash value grows slowly, tax-deferred, which means you won’t have to pay taxes on any gains while they’re accumulating. You can borrow money against the policy’s cash value, often at a favorable rate, or surrender the policy to collect the cash. If you don’t repay your policy loan with interest, you’ll reduce your death benefit. If you surrender the policy, you will no longer have coverage.
Most people choose whole life insurance when they want to provide money for their heirs to pay estate taxes or leave money for final expenses, such as funeral costs.
Protect what’s important to you with life insurance from Schmidt Insurance Group in Lake Oswego, Oregon. Our agents know their Schmidt when it comes to life insurance and can help you get the coverage you need. Stop in today and introduce yourself, or give us a call at (503) 206-0881 to learn more.
