Life can be pretty unpredictable…and no one likes to face the inevitable. But you can prepare your family ahead of time with Alabama life insurance.
InsureMe takes the confusion out of buying the protection you need. We have contracted with many of the state's top life insurance agents, who can give you the Alabama life insurance policy you need at a price you can afford. All it takes is a few minutes of your time and a little information.
Your family deserves the best. Let InsureMe help you get it today!
When you die, your loved ones will require financial resources to cover lost income and expenses related to your death, the family home, transportation and other monetary obligations. Alabama life insurance provides that financial security in your absence when you can no longer provide it yourself.
In essence, your Alabama life insurance policy becomes your survivors' financial nest egg. It enables those left behind to make wise decisions regarding their future, including issues such as jobs, relocations, college educations and remaining debts.
Who Needs It—and Why?
More than eight out of 10 U.S. families have some form of life insurance coverage today, according to the Alabama Department of Insurance. Most are family breadwinners looking to meet the future financial needs of their dependents such as a spouse, children or elderly parents. But some people also purchase Alabama life insurance to build up cash reserves for a future event such as retirement or estate taxes.
People from all walks of life purchase Alabama life insurance every day—single and married alike. In recent years, a growing number of women have become a significant part of the life insurance market, as the number of female heads-of-household increase.
Whatever uses your Alabama life insurance policy serve, nearly everyone needs the security and protection life insurance brings.
How Does It Work?
When you complete an application for Alabama life insurance, insurers gather information about you such as your age, gender, health, occupation and hobbies. This enables them to group you together with other people having similar characteristics, and then calculate a premium for the entire group type based on its risk of death. Everyone within your risk group pays the same premium amount. This process is known as risk classification, or underwriting.
When you purchase Alabama life insurance, you sign a contract with the insurance company agreeing to pay a set sum of money over a specified period of time. In return, your Alabama life insurance company promises to pay your beneficiaries, at the time of your death, a predetermined lump sum.
What Is Available?
Several types of life insurance can be purchased in Alabama, but the two most common include:
This is the simplest form of Alabama life insurance, providing financial protection for a temporary period of time. This type of policy may or may not be renewable.
Alabama term life policies are normally written for individuals who need large amounts of coverage for specific time periods. Initial premiums for Alabama term life insurance are usually much less than for permanent life insurance, but they may increase each year (or remain level) for a specified period.
Term life insurance provides good coverage for young Alabama families raising children or paying off mortgages. These policies are, however, short term solutions and do not build equity—but monthly costs are low, so individuals with limited resources are able to purchase life insurance protection. Most term life policies do not accrue cash value.
This type of Alabama life insurance provides Alabama residents with long-term financial protection. It includes both a death benefit and, in some cases, cash savings.
Whole life, also known as permanent life insurance, builds equity over time as its cash value increases. But premiums are higher than those of term insurance. Premiums do not increase as you grow older and, in fact, usually remain the same once the policy is purchased.
Those who are attempting to meet long-range financial goals do well utilizing this type of Alabama life insurance.
Which Type Should You Buy?
As with any other major purchase, the type of Alabama life insurance you buy must be a personal decision.
One way to make this decision is to examine the financial resources your dependents would have if you died now, and what they would need to maintain their current standard of living. Take all assets and income into consideration, including savings, investments, personal property and any real estate owned. Conversely, consider your family's cost of living, educational costs, and any other potential financial needs. Then closely examine your budget and living expenses to determine a comfortable, affordable monthly premium.
One word of caution: If you decide to purchase whole life insurance, be sure you intend to keep it for the long term. Allowing this kind of policy to lapse in its early years can be quite expensive.
How Much Is Enough?
There is no simple answer to this question. How much Alabama life insurance you need depends entirely on your family's needs.
Some experts recommend purchasing Alabama life insurance valued at five times your total annual take-home pay. But this amount may not always be accurate because no two families' needs are exactly alike. You should buy at least enough life insurance to replace your income over a specific period of time—long enough for your family to get back on its feet financially following your death.
If you can accurately identify your family's financial responsibilities and resources, you will make a wiser decision when deciding how much Alabama life insurance to buy.
How You Can Get Prepared
Lovingly providing for your family's needs is an important part of living securely. So get the facts, analyze your finances and leave your loved ones with the future they deserve. Buy your Alabama life insurance plan today!
InsureMe Makes Buying Life Insurance Easy!
Now, let InsureMe step in to make your Alabama life insurance purchase easy. In one simple step, we'll get you up to five competitive life insurance quotes from insurers in your area.
Submit your information in our quote box today—for a brighter future tomorrow.