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Basics
What is insurance
Life insurance is a contract between an individual ( the policyholder ) and an insurance company. In exchange for regular premium payments, the insurance company promises to pay out a death benefit to the policy beneficiaries upon the policyholders death.
Life insurance is a complex but vital financial tool that provides a financial safety net for your loved ones in the event of death. Here is a comprehensive guide covering everything you need to know about life insurance.
Types of life insurance
- Term Life Insurance: Provides coverage for a specific term (e.g., 10, 20, or 30 years). it is typically more affordable but doesn’t build cash value.
- Whole Life Insurance: Offers lifelong coverage and includes a cash value component that grows over time. Premiums are higher.
- Universal Life Insurance: Flexible coverage with adjustable premiums and death benefits. it also has a cash value.
- Variable Life Insurance: Combines life insurance with investment options, allowing policyholders to invest the cash value in various funds.
Why do you need life insurance
- To replace your income and support your family’s financial needs in case of your passing.
- To pay off outstanding debts (e.g., mortgage, loans, credit card debt).
- To cover financial expenses and funeral cost.
- To fund your children’s education.
- To leave a legacy or inheritance for your beneficiaries.
How much coverage do you need
- The coverage amount depends on factors like income, debts, expenses and future financial goals.
- A common rule of thumb is to have coverage that is 5-10 times your annual income, but individual circumstances vary.
- you’ll find a lot of calculation methods around the internet to help you figure out how much life insurance you need – in fact, you can use our own life insurance calculator . We made it quick and easy to use.
Premiums and payment Frequency
- Premiums are the payments you make for the life insurance policy.
- Payment frequency can be monthly, quarterly, semi-annually, or annually.
Beneficiaries
Beneficiaries are the individuals or entities who will receive the death benefit. You can name multiple beneficiaries and designate percentages for each.
IT'S ABOUT FAMILY
Insurance companies in the U.S often use the medical information Bureau (MIB) to share underwriting information, ensuring accuracy and consistency in assessing risk.
We understand that your financial needs and goals are as unique as your fingerprint. With us, you can be rest assured that your family’s future is safeguarded, come what may.
Riders and Additional Coverage
Policy riders provide additional coverage, such as critical illness, disability, or accidental death.
They may be added for an extra cost.
Underwriting
When applying for life insurance, you'll go through an underwriting process, which assesses your health, lifestyle, and other factors to determine your premium rate.
We have an Application Form you can fill in your details.
Contestability Period
Most policies have a two-year contestability period during which the insurer can investigate and deny a claim if the policyholder misrepresented information.
Policy Lapse
If you miss premium payments, your policy may lapse resulting in loss of coverage. Some policies have a grace period to catch up on payments.
Cash Value
Whole life, universal life, and variable life insurance policies have a cash value component that grows overtime. you can borrow or withdraw from this value, but it may affect the death benefit.
Tax Benefits
In many cases, life insurance proceeds are tax-free to beneficiaries.
some policies offer tax-deferred growth of the cash value.
Review and Update
It's essential to periodically review your life insurance coverage to ensure it still aligns with your financial goals and circumstances.
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Protect Your Legacy
We understand that discussing mortality is not the most pleasant of conversations. However, it’s an undeniable facet of life, and the unfortunate truth is that it can sometimes occur unexpectedly and prematurely.
This is why Reup was established. we are astounded to realize the number of families without any financial safety net. As we delved deeper into the insurance industry, it became apparent that very few insurers were actively engaging with families on the significance of life insurance.
You might believe you’re too youthful, in excellent health, or simply too caught up in the whirlwind of life. But none of us can foresee what lies ahead. The sooner you take action, the more cost-effective it is likely to be. Delaying until the eleventh hour is not advisable.
Take the first step by clicking below to start.
