Two basic types of life insurance

The first is term insurance, which covers you for a term of one or more years. It pays a death benefit only if you die in that term. Term insurance generally offers the largest insurance protection for your premium dollar. It generally does not build up cash value, and it may not be renewable at the end of the term or may cost considerably more to continue.

The second type is permanent life insurance, which goes by several names, such as universal life, variable universal life and whole life. Permanent insurance may provide long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. Because of the savings element, premiums tend to be higher.

A number of factors affect life insurance premiums. These include:

The age you purchase your policy. The older you are, the more expensive the premiums.

Your overall health. Life insurance companies typically ask you about your medical history, request access to medical records and even obtain blood and urine samples for testing.

Pre-existing and/or chronic health problems, such as diabetes, heart disease, cancer or sexually transmitted diseases may prevent you from getting life insurance or place you in a high-risk pool at greater cost.

Poor health habits, such as smoking and excessive drinking. Be aware that insurance companies may look back and consider these behaviors for the past five years.

Engaging in dangerous hobbies, such as skydiving, skiing or rock climbing

Your driving record, in terms of accidents, DWI/DUI citations, claims and tickets. The better your driving record, the better rates you’ll receive for your life insurance.

Your geographic area. Life insurance companies have access to regional data that document mortality rates and life expectancy, and they use that data to calculate the rates they offer.

Some of these factors are in your control. Others are a function of your genetics, occupation or location. Either way, it’s important for you to be educated on these issues so that you can make the best insurance decisions to fit your life.

For more information or if you need questions answered right away, please contact us at Yeager Insurance & Financial Services. We are proud to provide affordable insurance for our neighbors in West Virginia… including Hurrican and Milton.

Special Auto Insurance Considerations for Empty Nesters

There are benefits to growing older! At this life stage, you may be able to take advantage of several age-related discounts.

For example, as a mature driver (typically age 55 – 70), you may be eligible for discounts. After age 70, the incidence of serious accidents escalates significantly, so the discounts might cease.

Discounts may also be available for seniors who limit the amount of driving they do – for example, to less than 7,500 miles per year – or agree to only drive during daylight hours. When you retire or change jobs and work or stay closer to home – and, therefore, need to drive less – you should inform your insurance company. You may be able to get lower rates.

If you have worked for the same employer for many years, let your insurer know. Those who show stability in their employment may qualify for an auto premium discount.

If your children have turned 18, left home and are regularly not driving your vehicle, alert your insurance company, as your auto premiums may decrease.

Consider taking a senior driving refresher course, such as AARP’s 55Alive or a program run by the National Institute of Highway Safety or AAA. Participation in these programs may help you qualify for a discount.

Since your net worth may still be growing, or is at its highest at this stage of your life, consider whether it makes sense to purchase an “umbrella policy” to raise your auto liability coverage, for example to $1 million, in order to protect your assets.

If you are driving an older vehicle not worth much in current book value, consider dropping collision insurance. With older cars, the cost of collision coverage can exceed the value of the car.

For more information or if you need questions answered right away, please contact us at Yeager Insurance & Financial Services. We are proud to provide affordable insurance for our neighbors in West Virginia… including Teays Valley and Barboursville.