Imagining how your loved ones will take care of themselves in the event of your death inspires many people to look for Colorado life insurance. While the search for a good life insurance policy is important to many CO residents, there is also a lot of confusion surrounding what it offers and how much you really need. Take a minute to review some basic Colorado life insurance facts so that you can make the best decision for the people you love.
Mortgage payments
Child care
Car Payments
Lost Income
Things like child care, maid service or home maintenance if your spouse used to do these things and you now have to hire someone to do them
Funeral expenses
Credit card debt
Estate taxes and lawyer fees
College funds
Your premiums will always be highest after starting a family, and will taper off over time as your family grows up and your needs change. Some insurance agents will tell you to take out a policy 2 to 6 times your annual salary at the very absolute minimum.
What you really need to consider (either alone or along with that) are things such as:
your family’s expenses
the number of dependants you have
how long your children are going to be at home and will need to be cared for
any college expenses
any special needs (disabilities) that have to be provided for
circumstances that are unique to your family
a mortgage or vehicle payment that you want paid off at the time of your death
Don’t forget to adjust this number for future inflation.
Term Life Insurance – Term life insurance has no cash value and is only worth the policy amount when you die. It is also the simplest form of life insurance and the least expensive to buy. Term policies can usually be bought in 10, 20 and 30 year increments.
Whole Life Insurance – Whole life insurance is more expensive than term life insurance, but it does more for you. This policy provides protection while building some cash value. This is part life insurance and part savings account. It has both a death benefit and a cash value. If the policy is surrendered you get the cash that it has accumulated and pays when the policy holder dies or has reached the age stated in the policy.
Universal Life Insurance – Universal life insurance is the most flexible of options. It works much like whole life insurance in accumulating cash and allowing you to take loans out against it, but it also allows you to change the amount of the policy at different times, change payment schedules and amounts of premiums. A variation of the universal life is the variable life insurance policy that allows you to control how your money is invested.
Depending on your age and the policy you want, you may be required to undergo a medical exam to help in the underwriting process and determine your insurability. This will affect both your premium and any exclusions that you add. In addition, your policy will be affected by even further by
Your age and general health in the event that you do not have to undergo a medical exam. If you are over 65 you will not be able to purchase a term policy and will be required to purchase a whole life policy. Health conditions like asthma, type 2 diabetes, heart disease, cancer, sleep apnea, high blood pressure or cholesterol and depression automatically raise your premiums.
The type of policy you want, remember that term life insurance normally costs much less than whole life or universal life.
The amount of coverage you want or need.
Your hobbies and occupation.
Some Colorado providers that have good reputations you may want to consider are listed below. Just remember, a good reputation doesn’t guarantee that they are the best choice for you. Look at the policy options closely.
Prudential Life Insurance
Mutual of Omaha
American Family
John Hancock Life Insurance
Nationwide
State Farm
AIG/American General
Lincoln Financial
Banner Life
If you are in the market for Colorado life insurance, go no further. We have provided an easy to use tool right here on our website that will get you started in finding free Colorado life insurance quotes from multiple companies. Why not do it now?
