Getting a Florida Life Insurance Quote

Life insurance is an important investment. Setting aside money today for the future of your family is vital.

Your life insurance policy can mean the difference between your family having no financial worries after your death or having to pay for your funeral expenses and any outstanding debts.

Be sure to use the FREE tool above to start comparing life insurance policies right away!

What is life insurance?

Life insurance is coverage that pays your beneficiaries upon your death. It is meant to cover the expenses for your funeral, cover any debts you have and provide your loved ones with funds to help relieve any financial concerns.

Life insurance is available in several forms so that you can choose what best fits your family’s needs and your budget.

What types of life insurance are available?

Among the many decisions necessary when selecting life insurance, the first one you’ll need to make is what kind of life insurance is best for you. Several policy types are available - Term, Whole and Universal - and each comes with key benefits to meet your needs.

Term Life

Term Life is a basic life insurance policy with no investment component. Term policies typically have the lowest premium because they are not permanent policies, do not offer investment opportunities and expire after the set term of the policy.

Premiums are level for the life of the policy and are often based on the age of the policyholder when the coverage is purchased.

Whole Life

Whole life is “permanent” insurance which combines insurance with an investment fund. Policies pay a fixed amount on your death and are considered permanent because they cover you for life as long as your pay your premiums for a specific period of time.

Part of your premium builds cash value from an account (e.g., high interest savings) that your insurer selected. Cash value of that "cash accumulation fund" is tax-deferred as long as you keep the policy. Your premiums are typically level for the life of the policy and you may be able to borrow against the cash accumulation fund without being taxed (check your policy for specific details).

Universal Life

Universal Life is another “permanent” policy which offers an “adjustable” element to your life insurance policy. Policyholders are able to reduce or increase their death benefit and can have variable premium payments (subject to policy specifications) which can change based on your financial situation.

Additionally, this type of policy offers options for your death benefit – either a fixed amount or an increasing benefit which includes your cash value added to the face value of your policy.

It is important to note that the return on any investment element of an insurance policy is based on market estimates and returns are not guaranteed, unless otherwise specified in your policy.

How much coverage do I need?

Some financial advisors say you should always have high levels of coverage, but insurance is truly about covering those you love. Depending on your age, stage of life and income your insurance needs will vary. For example, if your children are independent and on their own, you can decrease your policies to cover only your debt and funeral expenses.

If you have many years until retirement, you may want to consider covering any income your surviving spouse and family will miss after your death.

When you are shopping for life insurance coverage, you should keep the following considerations in mind:

• Funeral costs
• Outstanding debt (including mortgage, loans and credit cards)
• Your salary
• Child care expenses
• College costs for any children still living at home (or wedding costs)

The basic rule of thumb is to have enough coverage to replace a minimum of five to seven years of your salary. If you have young children, you may want to replace as much as 10 years.

What else should I consider when I shop for life insurance?

In addition to the type of coverage you want to have and the amount of coverage you may need, policies and premiums vary significantly based on several other factors.

Your age: The younger you are when you purchase insurance typically means that your premiums will be lower. As you age, premiums for new policies will be higher and will jump substantially when you are in your 60's. Coverage past the age of 70 may be unattainable due to cost of premiums and health issues.

Your health: Depending on your policy, you will need to undergo some form of underwriting which means that the insurance company has a third party give you a health exam to determine the risk of writing a policy for you. Your weight, if you smoke, the amount of alcohol you consume, any prescription medications you take and your family history will all be factored into your coverage and premium amounts.

If you have an existing health concern, your premiums may be higher. It is important to note that it is never advisable to lie on any health screening. If an issurer has questions about a cause of death, they will investigate and if they find that an application had missing information, a claim can be denied. If one insurer denies coverage for you due to a health condition, there may be other companies who will take on higher risk policyholders.

Premium amount: When you are shopping for insurance coverage, you should have an idea of how much of a premium you can afford. If a premium is too high for your budget, you can adjust your coverage levels or comparison shop in order to purchase the level of coverage you desire. Conversely, if the coverage you would like is less expensive than you had budgeted, you may be able to purchase a higher amount of coverage.

Insurer Ratings: All insurance companies are rated by firms who review the financial stability of the insurer and the ability of the insurer to pay claims and contractual obligations. The A.M. Best Company and Standard & Poor's are two of the rating companies who review insurers. Ratings from these types of companies may help you determine which insurer is the best for you.

Exclusions: Insurers have the right to create policies with certain exclusions. If you participate in dangerous activities (e.g., skydiving) insurers may impose restrictions. An act of suicide will often exclude payment of benefits also. Before you sign any policy or pay any premium, it is important to review the list of exclusions that will prevent the payment of a death benefit.

Florida Licensing: In order to sell life insurance in Florida, agents must be licensed by the State of Florida. This licensing ensures that the companies and their representatives understand the insurance guidelines determined by the state including maintaining financial solvency and any pertinent state laws.

While there are many things to consider when shopping for life insurance, the internet has made it simpler to shop around and compare policies in order to get the coverage that best suits your needs.

Take the time to determine what you need and do your research before making a purchase. And use the FREE tool below to compare policies right away!