Life Insurance in Santa Barbara.
Great rates, highly rated insurers, local service.
If There Is Anything We Can Stress About Life Insurance, It Is This:
Life Insurance is one of the most important insurance products you can purchase. Most insurance products that you buy protect you, and your own personal or business financial assets. But life insurance is “insurance for others.” It truly is an unselfish insurance policy, a policy to provide for, and to protect others. Life Insurance is a gift for who you love most in this world.
What Is Life Insurance?
Life Insurance is an insurance policy that you purchase, that pays others in the event that you die. There are several different life insurance policy types available for purchase, but they all essentially have the same concept. If you pass away, the “beneficiaries” that you have set on the policy are paid out a sum of money (called the death benefit.)
Who Should Buy Life Insurance?
Most people should consider purchasing life insurance. Certainly anyone that has dependents that rely on them for income, or other reasons. Here are just some examples of people who should purchase life insurance:
Parents with children (even grown children.)
Future parents who intend to have children someday.
Spouses or partners who rely on each others incomes (even without children)
Retired persons with pensions that will end if they die.
People who care for and are relied upon by others like parents or siblings.
People who care for and are relied upon by disabled or sick persons.
Key employees of businesses.
Owners of businesses.
Key members of organizations like non-profits or related.
Anyone whose death will cause a financial loss or hardship to others.
When Should You Buy Life Insurance?
You can purchase life insurance throughout your life, although later in life it can become hard or not possible to purchase due to age. But there are two points that we cannot stress enough:
(1) It is best to purchase life insurance when you are in good health. Because the life insurance companies “underwrite” your health by asking you medical questions on the application, completing a medical exam, and often ordering your medical records from your doctors office, the better health you are in when you apply, the better rate you are going to get. Certainly it is possible to obtain life insurance if you have certain medical conditions. But the rates can increase. The life insurers can also decline your application if your medical condition is severe. So the bottom line, do not delay- apply as soon as possible if you are in good health. If your health condition changes you may become ineligible for life insurance, for life.
(2) The younger you are, the better rate you are going to get. Life insurance rates increase with age. So delaying a purchase of life insurance can cost you big in the long run.
What Type of Life Insurance Policies Are There?
There are three main types of life insurance policies:
Term Life Insurance is the most common type of life insurance policy sold. Term life insurance gives you protection for a set period of time. Usually 10, 20, or 30 years. If you die during the policies term, the policy death benefit (limit of coverage) will payout to the beneficiaries that you have set on the policy. On a term policy, you pay your premiums every year, and once the term ends, the policy ends. You cannot renew the policy, you do not get any money back, it is just over. You have purchased coverage for a set period of time, the policy protected you for that time, and when the term ends it ends. At the end of the term if you want to extend your coverage you need to apply for a new life insurance policy, and go through underwriting again. The benefit of a term life insurance policy is that the premiums are low compared to other policy types. You can purchase a lot of coverage. Term policies are great for those who want to protect their loved ones for a set period of time. For example, parents who want to provide protection to their family for a 30 year period until their kids are grown and independent, and their mortgage is paid off. Or, a business owner who wants to buy protection for a key employee for a 10 or 15 year period of time. Term life is the most popular life insurance policy sold.
Whole Life Insurance- otherwise known as permanent life insurance is usually a lifetime life insurance product. Once the policy is setup, as long as you keep paying the required premiums, the policy does not end and will payout a death benefit to your beneficiaries when you die. If that is 10 years from now or when you are 100 years old. Whole life insurance policies truly are permanent policies. Whole life insurance policies also have a feature where they can accumulate a cash value over time. Whole life insurance has premiums that are much higher than term life insurance, because the death benefit of the policy will payout eventually. Whole life insurance is sold, but not as popular as term or Universal Life Insurance.
Universal Life Insurance- is considered a long term life insurance product that lasts late into life (90’s and beyond in most cases) Universal Life policies essentially have a “savings account” built into the policy. When you make your monthly payment, part of your payment is going into this savings, part of your payment is going to the premium to pay for the life insurance. Anything that you pay over the premium and policy administrative fees goes to the savings account. There are maximums as to how much you can pay into the policy as set by the IRS. Some Universal Life policies allow you to invest the payments into Mutual Funds. These are called Variable Universal Life policies. Our office does not sell these. Other Universal Life Insurance policies are called Guaranteed Universal Life, where your payments are not tied to stock market performance. The Guaranteed Universal Life policies usually do not build any cash value, and are simply for lifelong life insurance protection.
Other Life Insurance Concepts
Individual Life Insurance- This is a policy for one person. An example would be a parent purchasing a life insurance policy to protect their family.
Group Life Insurance- This is when a company purchases life insurance for their employees. Or, makes available for purchase life insurance to their employees, which is known as voluntary group life insurance, because is is the employees choice whether or not to opt into the coverage.
Key Person Life Insurance- This is a policy on an individual who is important to an organization. Like an owner of a company, business partner, or key employee in an company or organization. If something happens to this person, and the organization would suffer as a result, Key Person life insurance should be purchased.
Primary Beneficiary- This is the person (or people) who you list on your policy that are to be paid in the event of your death. You can list one primary beneficiary, or more than one, and assign a % split. For example, you can assign 100% of your policy proceeds to be paid to your spouse in the event you die. Or you can assign 50% to go to your spouse, and 50% to go to your 30 year old daughter, for example.
Contingent Beneficiary- This is the person (or persons) who you list on your policy who are next in line to be paid your policy proceeds after your primary beneficiary. In the event that both you and your primary beneficiary die at the same time. For example, if your primary beneficiary is your spouse. If something happens to both of you at the same time, you can set your contingent beneficiary to be your family trust, or whomever is going to be the caretaker of your children.
Many Procrastinate To Purchase Life Insurance, Get Started Today
Give your family peace-of-mind and financial security by setting up a life insurance policy that will cover expenses should the insured party pass away. We offer multiple coverage options to fit your budget and priorities. Here at Baxter Insurance, we have been setting up life insurance policies for our clients for 30 years. We take great care to ensure that not only are we getting our clients great rates and coverage, but also that we are here for their families in their times of need. You can count on us, Baxter Insurance is here for you.
Baxter Insurance Writes Life Insurance:
California Life Insurance
Goleta Life Insurance
Santa Barbara Life Insurance
Montecito Life Insurance
Carpinteria Life Insurance
Types of Life Insurance:
Term Life Insurance
Universal Life Insurance
Whole Life Insurance
Group Life Insurance
Key Person Life Insurance
Special Rate Situations:
Active Lifestyle Preferred Rates
Preferred Rate Life Insurance
Healthy Lifestyle Rates
Controlled Diabetes Life Rates
No-Exam Life Insurance