Life Insurance West Linn, OR
No one can predict the future, but having life insurance will provide you and your loved ones with peace of mind. If buying life insurance is on your wish list in West Linn, OR, let Schmidt Insurance Group help you choose the best coverage.
At Schmidt Insurance Group, we take the time to understand your unique needs. We are licensed experts who can help you make smart decisions about the coverage you need to protect your family, your property, and your business.
Understanding 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. There are two main types of 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 protects you 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, remains 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.
Is Life Insurance Worthwhile if You’re Single?
Many singles think life insurance is unnecessary at this stage of their lives. In addition to paying for your funeral expenses, however, life insurance can provide a financial safety net for your loved ones after you’re gone.
- Pay Off Outstanding Debts: If you have outstanding student loans or other debts that a parent or family member has co-signed for, your co-signers would be help responsible for the debts if you suddenly pass away. Life insurance can help a loved one pay off these debts so no one else has to assume the responsibility.
- Support Loved Ones in Need: If you are supporting elderly parents in their retirement, your sudden demise could put them in a financial bind. With a life insurance policy, you can designate benefits to be distributed to the loved ones you’re supporting so they can continue getting the financial help they need.
At Schmidt Insurance Group, we can help you navigate all available options for life insurance in West Linn, OR. Stop in for a visit and introduce yourself, or give us a call at (503) 206-0881 to learn more.
