Term Life Insurance

Life insurance for retirees: What you need to know

Life insurance for retirees: What you need to know

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Life Insurance | Contact Us Today!

As we reach our retirement years, many of us start to consider what kind of legacy we want to leave behind. One crucial aspect of this planning is life insurance. In this blog post, we will explore the importance of life insurance for retirees and the options available to ensure financial security and peace of mind.

Retired Without Life Insurance

It’s a common misconception that life insurance is only for the young and employed. However, the reality is that retirees can also benefit greatly from having life insurance. Whether you have outstanding debts, want to leave an inheritance for your loved ones, or simply want to cover your final expenses, life insurance can provide essential financial protection.

Senior Life Insurance Options

There are several life insurance options specifically designed for seniors. These include term, whole, and guaranteed universal life insurance. Each type has its own features and benefits, catering to different needs and financial situations.

Getting Covered After Retirement

While it may seem challenging to get life insurance coverage after retirement, it’s certainly not impossible. Many insurance companies offer specific policies tailored to the needs of retirees. By exploring your options and understanding the available coverage, you can find a policy that suits your requirements.

Life Insurance Without Age Limit

Contrary to popular belief, there are life insurance policies available that do not have age limits. These policies can be a great option for retirees who want to ensure their loved ones are financially secure after they’re gone.

Future Planning and Insurance Options

When planning for retirement, it’s essential to consider future financial needs. Life insurance is a crucial component of this planning, providing peace of mind and financial security for you and your family. Understanding the available insurance options is key to making informed decisions.

Shield Insurance Agency Represents Over 50 Insurance Companies

When it comes to choosing the right life insurance policy, having options is crucial. Shield Insurance Agency can help you find the perfect policy to meet your unique needs and budget.

Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK, and an agent will be in touch soon.

In conclusion, life insurance for retirees is a vital aspect of financial planning. By understanding the available options and seeking the guidance of professionals, retirees can ensure financial security and leave a meaningful legacy for their loved ones. Contact Shield Insurance Agency today to explore your life insurance options and secure your financial future.

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The Shocking Truth About Employer-Sponsored Life Insurance Plans!

💡 The Shocking Truth About Employer-Sponsored Life Insurance Plans!

Posted on by Shield Insurance Agency

Shield Insurance Blog | Employer-Sponsored Life Insurance | Life Insurance | Contact Shield Today!

Shield Insurance Agency offers TERM LIFE Insurance, ask us why we donn't recommend Whole or Universal Life Insurance

When it comes to financial protection and security, life insurance is an essential component of any comprehensive personal finance plan. It provides a safety net for your loved ones in the event of your untimely demise, ensuring that they are not burdened with financial hardships during an already difficult time. Many employers offer life insurance as part of their employee benefits package, but is this coverage enough?

Employer-Sponsored Life Insurance is a great perk!

While employer provided life insurance can be a valuable perk, it is important to evaluate whether it adequately meets your needs. Additional coverage may be necessary to ensure that your loved ones are fully protected. Let’s take a closer look at the factors to consider when assessing the sufficiency of your employer sponsored life insurance plan.

Life insurance benefits provided by your employer are typically based on a multiple of your annual salary. For example, if your employer offers a plan that provides coverage equal to two times your salary, and you earn $50,000 per year, your life insurance coverage would be $100,000. While this may seem like a substantial amount, it may not be enough to cover all of your financial obligations and provide for your family’s future needs.

One important consideration is your current financial situation. Do you have outstanding debts such as a mortgage, car loans, or credit card balances? These debts can quickly add up and become a burden for your loved ones if they are left to shoulder the responsibility. Additional life insurance coverage can help ensure that these debts are paid off, providing your family with a clean slate and financial stability.

Is Your Employer-Sponsored Life Insurance Adequate?

Another factor to consider is your family’s future financial needs. Will your spouse or children need financial support for education expenses? Do you have aging parents who may require assistance? These are important questions to ask when evaluating the adequacy of your life insurance coverage. Additional coverage can provide the necessary funds to meet these future needs and provide your loved ones with a secure financial future.

It is also important to consider the cost of living in your area. If you live in a high-cost city or region, the amount provided by your employer-sponsored life insurance plan may not be sufficient to cover your family’s expenses. Additional coverage can help bridge this gap and ensure that your loved ones can maintain their current standard of living.

When evaluating your life insurance options, it is important to compare different insurance plans and providers. Shield Insurance Agency represents over 40 insurance companies, offering a wide range of coverage options to meet your specific needs. By working with an independent insurance agency like Shield Insurance Agency, you can access multiple quotes and find the best policy for your unique situation.

To determine the adequacy of your life insurance coverage, it is important to assess your current financial situation, future needs, and the cost of living in your area. By considering these factors and comparing different insurance options, you can ensure that your loved ones are fully protected in the event of your passing.

If you have any questions or would like to explore additional coverage options, contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. Don’t leave your family’s financial security to chance – take the necessary steps to provide them with the protection they deserve.

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Life Insurance 101: Universal vs. Whole Life Insurance - Your Ultimate Guide!

Life Insurance 101: Universal vs. Whole Life Insurance – Your Ultimate Guide!

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Whole Life Insurance | Learn More

Shield Insurance Agency offers TERM LIFE Insurance, ask us why we donn't recommend Whole or Universal Life Insurance

When it comes to life insurance, there are many options available to individuals looking to protect their loved ones and secure their financial future. Two popular choices are universal life insurance and whole life insurance. While both types of policies offer lifelong coverage, they differ in terms of cash value, death benefit, and flexibility. In this blog post, we will explore the differences between universal and whole life insurance, and help you determine which option is best for you.

First, let’s start with the basics. Life insurance is a contract between a policyholder and an insurance company. The policyholder pays regular premiums, and in return, the insurance company provides a death benefit to the policyholder’s beneficiaries upon their passing. This death benefit can be used to cover funeral expenses, pay off debts, or provide financial security for loved ones.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that offers coverage for the entire lifetime of the policyholder. It has a fixed premium and a guaranteed death benefit. One of the key features of whole life insurance is its cash value component. As the policyholder pays premiums, a portion of the premium goes towards building cash value. This cash value grows over time and can be accessed by the policyholder through loans or withdrawals. The cash value also earns interest, which is tax-deferred.

Universal Life Insurance

On the other hand, universal life insurance is also a type of permanent life insurance, but it offers more flexibility than whole life insurance. With universal life insurance, the policyholder has the ability to adjust the death benefit and premium payments. This flexibility allows individuals to increase or decrease their coverage as their needs change over time. Universal life insurance also has a cash value component, which grows based on the performance of the underlying investments chosen by the policyholder.

Now that we understand the basic differences between universal and whole life insurance, let’s dive deeper into the key factors that set them apart.

Cash Value: Both universal and whole life insurance policies have a cash value component. However, the way the cash value grows and is accessed differs between the two. In whole life insurance, the cash value grows at a fixed rate determined by the insurance company. The policyholder can access the cash value through loans or withdrawals, but these may affect the death benefit. In universal life insurance, the cash value growth is tied to the performance of the underlying investments chosen by the policyholder. This means that the cash value has the potential to grow at a higher rate, but it also carries more risk.

Death Benefit: The death benefit is the amount of money that is paid out to the policyholder’s beneficiaries upon their passing. In whole life insurance, the death benefit is guaranteed and remains the same throughout the life of the policy. In universal life insurance, the death benefit can be adjusted by the policyholder. This flexibility allows individuals to increase or decrease their coverage as their needs change.

Flexibility: Universal life insurance offers more flexibility than whole life insurance. With universal life insurance, the policyholder has the ability to adjust the death benefit and premium payments. This flexibility allows individuals to increase or decrease their coverage as their needs change over time. Whole life insurance, on the other hand, has a fixed premium and death benefit, providing less flexibility.

Estate Planning: Both universal and whole life insurance can be used as a tool for estate planning. The death benefit from a life insurance policy can help cover estate taxes and provide liquidity to the policyholder’s estate. Additionally, the cash value component of both types of policies can be used to supplement retirement income or leave a legacy for future generations.

Financial Security: Life insurance provides financial security for loved ones in the event of the policyholder’s passing. Both universal and whole life insurance offer lifelong coverage, ensuring that the policyholder’s beneficiaries are protected no matter when they pass away. The death benefit can be used to cover funeral expenses, pay off debts, or provide financial stability for loved ones.

In conclusion, the main differences between universal and whole life insurance lie in the cash value, death benefit, and flexibility. Whole life insurance offers a fixed premium and death benefit, with a cash value that grows at a fixed rate. Universal life insurance, on the other hand, provides more flexibility in terms of adjusting the death benefit and premium payments, with a cash value that grows based on the performance of the underlying investments. Both types of policies can be used for estate planning and provide financial security for loved ones. It is important to carefully consider your personal financial goals and needs when choosing between universal and whole life insurance.

If you are interested in exploring life insurance options, Shield Insurance Agency represents over 40 insurance companies and can help you find the right policy for your needs. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Term Life Insurance: Protecting Your Family with Affordable Coverage

Term Life Insurance: Protecting Your Family with Affordable Coverage

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Term Life Insurance | Life Insurance | Start A Quote Today

As a responsible adult, you want to ensure that your family is protected in case of any unforeseen circumstances. One of the best ways to do this is by investing in a term life insurance policy. It provides a lump sum payment to your beneficiaries in case of your untimely death, ensuring that they are financially secure even in your absence. However, with so many options available in the market, it can be overwhelming to choose the best term life insurance policy for your needs. In this blog post, we will discuss the key factors to consider when selecting a term life insurance policy and how Shield Insurance Agency can help you find affordable coverage.

What is Term Life Insurance?

Term life insurance is a type of life insurance policy that provides coverage for a specific period, usually ranging from 5 to 30 years. It is a popular choice among individuals who want to ensure that their family is protected during a specific period, such as the duration of a mortgage or until their children are financially independent. Unlike permanent life insurance policies, such as whole life or universal life insurance, term life insurance policies do not accumulate cash value and are typically more affordable.

Factors to Consider When Choosing a Term Life Insurance Policy

When selecting a term life insurance policy, there are several factors to consider to ensure that you get the best coverage for your needs. These include:

  • Coverage Amount: The coverage amount should be sufficient to cover your family’s financial needs in case of your untimely death. It should take into account your outstanding debts, future expenses, and income replacement needs.
  • Term Length: The term length should align with your financial goals and needs. For instance, if you have a 30-year mortgage, you may want to consider a 30-year term life insurance policy.
  • Premiums: The premiums should be affordable and fit within your budget. It is essential to consider the long-term affordability of the policy, as premiums may increase over time.
  • Deductible: Some term life insurance policies may have a deductible, which is the amount you need to pay before the insurance coverage kicks in. It is essential to consider the deductible amount and how it may impact your financial situation.
  • Insurance Company: It is crucial to choose a reputable insurance company that has a strong financial rating and a history of paying out claims.

How Shield Insurance Agency Can Help You Find Affordable Coverage

At Shield Insurance Agency, we understand that selecting the best term life insurance policy can be overwhelming. That’s why we are here to help you find affordable coverage that meets your needs. As an independent insurance agency, we represent over 40 insurance companies, giving us access to a wide range of policies and pricing options. Our experienced agents will work with you to understand your financial goals and needs and provide you with a term life insurance quote that fits within your budget.

To get started, you can contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK, and an agent will be in touch soon. We will guide you through the process of selecting the best term life insurance policy for your needs and ensure that you have the protection your family deserves.

In conclusion, investing in a term life insurance policy is an essential step in protecting your family’s financial future. By considering the factors mentioned above and working with Shield Insurance Agency, you can find affordable coverage that meets your needs and provides you with peace of mind. Contact us today to get started on your journey toward financial security.

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Join the Celebration: Shield Insurance Agency Recognized for Business Excellence!

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Shield Insurance Agency | Shield Blog | About Us | Start A Quote Today! | Business Excellence Award

We are pleased to announce that Shield Insurance Agency has been nominated for the prestigious Business Excellence Award. This recognition is a testament to our commitment to providing exceptional insurance services and our dedication to our clients.

The Business Excellence Award is given to companies that have demonstrated outstanding performance, innovation, and leadership in their respective industries. It recognizes organizations that have achieved significant growth, maintained high ethical standards, and made a positive impact on their communities.

We are honored to be considered for this award and would like to express our gratitude to our clients for their continued support and trust in our services. This nomination serves as motivation for us to continue delivering the highest level of service and to constantly improve our offerings.

We would also like to extend our appreciation to our dedicated team members who have worked tirelessly to ensure the success of our agency. Their hard work, expertise, and commitment to excellence have been instrumental in our nomination for this prestigious award.

Winners of the Business Excellence Award will be announced at a ceremony later this year. We are excited about the opportunity to be recognized among other outstanding businesses and look forward to the results.

Once again, we would like to thank everyone who has contributed to our success and helped us achieve this nomination. We remain committed to providing exceptional insurance services and being a trusted partner for all our clients’ insurance needs.

Thank you for your continued support.

Big News from the Hudsonville Chamber of Commerce!

It’s Awards Season!


The Chamber is SO excited to be hosting the Chamber Awards once again this year!

Here are our nominees for the 2021 Awards!
::::: drumroll :::::

Business Excellence Award

  • Hudsonville Physical Therapy
  • Advent Physical Therapy
  • Shield Insurance Agency

Leadership Award

  • Dr. Therese House-Vereeke
  • Patrick Waterman
  • Mary Jane Schreur

Spark Award

  • Hand 2 Hand Ministries
  • Meijer
  • Joy 99

The winners of the Awards will be announced at our official Awards Ceremony MEAL. June 17th at noon at the Pinnacle Center.

Make sure to get registered, we hope to see you there!

Visit the Shield Insurance Blog for some great reading…

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How to access your life insurance policy’s cash value

Posted on by Shield Insurance Agency

The most important job of life insurance is to take care of those who count on you if something were to happen to you. While all life insurance provides a death benefit to fill this role, some types also build cash value.

What is cash value?

When you make a premium payment into a cash value life insurance policy, part of that money stays with the policy, earns a return, and accumulates over time. This is the cash value. It’s what you’d get if you surrendered the policy (less any surrender fees).

Some policies have a provision to pay out the cash value as part of the death benefit while others do not. Check your policy or check with your insurance agent to confirm which type you have.

Types of cash value life insurance

Permanent policies, including whole and universal life, offer lifelong coverage and have cash value. This cash value accumulates differently based on the type of policy.

  • Whole life cash values are pre-defined and guaranteed. In exchange for guarantees, the cash value grows at a conservative rate.
  • A fixed universal life (UL) credits the cash value with a rate determined by the insurance company based on market conditions. This rate can vary over time but won’t be less than a guaranteed minimum.
  • Indexed UL earns a rate tied to a market index, like the S&P 500®, which offers greater upside potential than the above types. When the market performs poorly, the rate may be lower, but there’s no risk of market loss since you’re not actually invested in the market.
  • Variable UL cash value accumulates based on the market performance of the mix of available investment options chosen by the policy owner. These policies can lose money.

6 ways to use your cash value

The cash value can be a useful financial tool and can be accessed in several ways — but make sure to ask your insurance agent for details to avoid any unintended consequences.

1. Pay policy premiums.
Another option to use cash value is to pay some or possibly all the premiums for your life insurance policy.

2. Take out a loan.
You can also take out a loan from your policy. The rate is usually lower than a bank loan — and you don’t have to qualify for the loan since it’s your money (good news for those with a weak credit history).

You don’t have to repay these loans, but interest will continue to accumulate. If the total outstanding loan balance including interest ever exceeds the cash value, the policy will lapse, ending your coverage. To avoid this situation, either pay the interest each year or keep an eye on the situation and take action when needed.

Any unpaid loan balances will reduce the death benefit when the insured person dies.

3. Make a withdrawal.
You can also withdraw some or all of your cash value — may be for an emergency expense or to get you through a tough time. Withdrawals can reduce the death benefit, though, so consult your agent before you pull the trigger. There are no taxes on a withdrawal as long as the amount is withdrawn is less than what you’ve paid in.

4. Supplement your retirement.
Cash-value life insurance can add to your retirement portfolio. Since it grows tax-deferred, it can accumulate faster, but it still may take a number of years, maybe 10 to 15, to become a significant asset.

Some policies also allow you to receive part or all of the death benefit early for terminal illness, long-term care, or chronic conditions, which can help protect your nest egg.

5. Surrender your policy completely.
If you no longer need the coverage, you can completely cancel or surrender your life insurance policy and receive the accumulated cash value, less any fees and outstanding loan balances.

Any money you receive that’s above what you paid into the policy will be taxed as ordinary income. So, if you paid in a total of $10,000 and you receive $12,500 after your surrender, you’ll be taxed on $2,500.

6. Sell your policy.
As an alternative to surrendering your life insurance policy, you may be able to sell it to a life insurance settlement company. The company will take over the payments and become the policy’s beneficiary.

Like a surrender, you’ll be taxed on amounts in excess of what you paid in premiums. You should still end up with more money than a surrender. However, the process can be time-consuming, and it may be hard to find an interested buyer.

With these many options, life insurance can not only protect your family, but it can also provide a flexible financial resource over the years.

A special thank you to Grange Life Insurance Company and Kansas City Life Insurance Company for contributing this article.

Life policies are offered by Kansas City Life Insurance Company, Kansas City, Mo., and are subject to underwriting approval.

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Is Work Life Insurance Enough?

Posted on by Shield Insurance Agency

Is the life insurance you have at work enough? 3 ways to tell

If you work full-time, chances are you have some life insurance through your employer — 75% of full-time workers in the U.S. have access to life insurance as an employee benefit and 98% of those workers are covered.1 But is it all the life insurance coverage you need?

Many people mistakenly think it is, even though they could benefit from having their own life insurance outside of work.

Here are three things to consider:

1. Is it enough coverage?

If your employer offers life insurance and you signed up for it, at least you have some coverage. That’s better than no coverage. But it might not be enough to give your family the funds they need to make ends meet if the worst happens to you.

Research shows that one of every three families would be in financial trouble in less than one month if they lost a primary wage earner — and the percentage grows to 70% within six months.2

You can help your family avoid this hardship by making sure you have enough life insurance to replace your paycheck as long as needed (for example, until the kids leave home or the mortgage is paid off).

Your employer may limit the amount of group coverage available to you, leaving you short.

2. You can’t take Life Insurance with you.

Even if you can get enough coverage through your employer, that coverage may end before you want it to — and may end suddenly

Group life insurance is an employee benefit that usually ends when your employment ends. Even if you’re going to a new job immediately, you may not be eligible for benefits right away — if the new employer offers it at all. And, if you lose your job to a lay-off, downsizing, or firing — or if you retire — it might be a while before you can replace the coverage.

If your strategy is to buy individual life insurance later, keep in mind, that your health, driving record, and credit history must remain solid in order to qualify for it. Also, coverage generally costs more as you age.

3. No extra benefits or cash value.

Employer coverage is usually affordable and reliable. But it’s also usually pretty basic, meaning it doesn’t accumulate cash value over time or have any extra benefits under your control

  • Cash value. An individual policy you buy from an insurance agent can last for life — usually up to age 100 or 120 — and, depending on the type of policy, can build up a cash value that you can borrow against or use to pay part of the cost of the policy. Employer group plans don’t offer these options.
  • Extra benefits. These days, many individual life insurance policies offer additional benefits during the living years. These include features that provide part of the death benefit early if the insured person is diagnosed with a terminal illness or needs long-term care. Another feature can extend coverage to others in the family. These extra benefits may carry an additional cost, but that cost may still be lower than stand-alone coverage.

For these reasons, it might be wise to think of employer coverage as a supplement to your own individual policy, instead of relying on it as your only source of life insurance coverage. That puts you in the driver’s seat to choose the type and amount of coverage that’s right for you — and that can be customized to your needs.

1 – National Compensation Survey, Employee Benefits, Bureau of Labor Statistics, 2018
2 – Insurance Barometer Study, LIMRA, 2017

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Calculate How Much Life Insurance You Need

Posted on by Shield Insurance Agency

Calculate how much life insurance you need

Life insurance is an important part of planning for the future. In your absence, life insurance can help protect your family’s finances, allow your small business to live on, and give you something to leave behind for your loved ones or a favorite charity.

Many people understand the importance of life insurance.

According to LIMRA, 80% of consumers believe that most people need life insurance and as many as 132 million Americans rely on life insurance to protect their financial security. But when it comes to actually purchasing a policy, the confusion sinks in and one big question often comes to mind: how much life insurance coverage do I need?

A life insurance policy isn’t “one-size-fits-all.”

Everyone has a unique financial situation, so coverage needs are just as unique. To answer this question, you’ll need to get your own personal estimate. Although meeting with your life insurance agent will give you the most accurate results, there are a few different methods you can use to get started.

One way to determine the costs you’ll leave behind is through the “DIME” method. DIME stands for:

D – Outstanding Debts
I – Income Replacement
M – Mortality
E – Education

To get an estimate of how much coverage you will need, take some time to list out all of your expenses that fall under these four categories.

Debt

Outstanding debt can be anything from outstanding student loans, to money you owe on a credit card. You also want to be sure your family can keep their home and stay there for years to come, so be sure to factor in your mortgage into your life insurance estimate. Regardless of how the debt was accumulated, you don’t want these expenses falling on the shoulders of your loved ones.

Income

How will your absence affect your family’s finances? Income replacement calculates just that—the amount of coverage your loved ones would need to continue living a similar lifestyle. Consider day-to-day living costs, as well as other types of spending, like childcare. And keep in mind that inflation will likely cause costs to increase. Don’t forget to factor in income that comes from any investments, in addition to the income that comes from your job.

Mortality

The mortality portion of “DIME” covers all final expenses, including funeral costs and other expenditures associated with end-of-life. When estimating final expenses, you may want to leave a little wiggle room for costs that you may not anticipate or be able to determine an exact number for, such as unpaid medical bills. There are also many costs and taxes that come along with settling your estate, so keep that in mind as well.

Education

If you have children who are in or are planning on going to college or even a spouse who may want to go back to school, consider the costs of their education when estimating your life insurance policy.

Once you add up all of these expenses, you may end up with a pretty big amount. However, there are a few items that you can subtract from this number, such as the amount of coverage on a group life insurance policy, funds from your retirement plan, or any other savings you’ve accumulated.

In addition to the DIME exercise, there are many online tools you can use to help you estimate your needs. For instance, Life Happens provides a nifty online calculator for estimating these costs. Enter all of your information in the form, and click on the question marks next to each form field for additional tips and information. Once you’ve filled in all of the fields, Life Happens will instantly estimate how much life insurance you need.

While the DIME method and Life Happens’ calculator are helpful tools, they cannot replace the knowledgeable insight and helpful advice of an independent insurance agent. An agent will speak with you about all aspects of your life, and work with you to find the right amount of coverage for your specific needs, contact Andy Simmons, our Life Insurance specialist, and get the coverage you need to protect your loved ones’ financial future.

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5 Tips for Millennials Buying Insurance

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Shield Insurance Agency Blog | Millennials Buying Insurance |

Adulting (verb) – acting like an adult or engaging in activities usually associated with adulthood, often responsible or boring tasks.1

5 Tips for Millennials Buying Insurance

If you’re a millennial, you know this definition all too well. You’ve reached the age where you may be taking out student loans, buying or renting a place to live, having kids, and, ultimately, purchasing insurance. These major life events for millennials make it extremely important to have a financial security net. And that’s exactly what insurance is: a financial security net. So it’s troubling that a survey from Princeton Survey Research Associates International named millennials the most under-insured generation.

There are many reasons why people of all generations avoid purchasing insurance. It‘s often seen as a big investment, but that doesn’t necessarily mean that it’s an expensive one. In fact, insurance probably costs less than you think. For instance, according to the National Association of Insurance Commissioners (NAIC), millennials overestimated the cost of renters insurance by more than five times its actual cost per year.

Also, the complicated terms can make finding a policy a puzzling experience and the subject matter can be tough to digest. No one wants to think about being in a car accident, experiencing a break-in, losing everything in an apartment fire, or any other sort of bad, unexpected event. But these things can happen, so you’ll want to be prepared.

And don’t let any initial confusion or preconceived notions drive you away. You’re a millennial, after all! Your generation is always tackling new challenges and expanding the way the world works, oftentimes in brilliant ways.

Insurance provides essential financial protection for your future, so now’s the time to start “adulting” and take that first step.

Here are five tips:

  1. Shop smart. When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
  2. Look for discounts. Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
  3. Fill in the gaps. An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.
  4. Purchase life insurance—you aren’t too young. Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
  5. Talk to an independent agent. An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple carriers, different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.

Find a local independent agent and start protecting your finances today.

1 – Grammar Girl

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5 Reasons Why Having Life Insurance Is Good for You

Posted on by Shield Insurance Agency

Life Insurance

We get it: No one wants to think about death—for us or the ones we love. And a lot of people equate life insurance with death. And while it IS there if the worst were to happen, it can also do so many other things and doesn’t have to break your budget while doing it. Check out these great reasons to consider life insurance:

1. It’s part of a sound financial plan. Insufficient coverage has severe consequences for many families. We know that four in 10 households without any life insurance would have immediate trouble paying living expenses if their primary wage earner died. Life insurance helps with planning for your loved ones’ long-term health and happiness, providing you with peace of mind that your loved ones are financially protected.

If someone would suffer financially when you die, you need life insurance just like you need a savings or checking account. The money from the policy’s death benefit can help your family meet many important financial needs like funeral costs, daily living expenses, and college funding. 

2. It’s not as expensive as you think. Many consumers believe that life insurance is either too complicated or too expensive to consider, creating a barrier to ownership with only 57% of people owning life insurance in 2019. In actuality, life insurance is inexpensive and much more accessible than you think. For a healthy 30-year-old, for example, they can get a 20-year term life insurance policy with $250,000 of coverage for about $13 a month. When you break it down like that, it’s easier to budget for and less scary to think about.

3. It can build cash value over time. Permanent life insurance has a cash value or cash surrender value, which means it can build cash value over time in addition to providing a death benefit to your beneficiaries. Just like most retirement and tuition savings plans, cash values can accumulate on a tax-deferred basis and be used in the future for any purpose you wish—a down payment on a home, college tuition, or even income for your retirement.

This can be a good option as the borrowing rates tend to be relatively low and it’s not dependent on credit checks or other restrictions. Keep in mind, though, you’re ultimately responsible for repaying any loan as set out, to make sure your beneficiary receives the death benefit you had envisioned for them. 

4. Life insurance can be more than just life insurance. Riders to a life insurance contract or a specific kind of policy can enhance coverage. For example, you could have a life insurance policy, sometimes called a hybrid policy, that includes a long-term care benefit to pay for long-term care services. If this is something you need down the line, you can take advantage of it, otherwise, there is a death benefit for your beneficiary. There are a number of different riders available that can help you customize and boost your coverage. 

5. It can help maximize your retirement. If the financial obligations you had when you first purchased a permanent life insurance policy have ended, your policy can take on a new life and benefit your retirement. Structured correctly, your policy can provide supplemental retirement income via policy loans and withdrawals or even options for long-term care benefits.

Life insurance can also maximize a pension by supplementing a surviving spouse’s income, or established into a life insurance trust to allow you to pass on to your heirs outside of your estate (often avoiding both estate and income taxes).

So, what are the next steps? Why not let us do a quick calculation to see how much life insurance you may need? And then let’s talk about your needs and budget—remember, we will help you free of charge with no obligation. Contact Us Now!

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