Protect the income your family counts on
Life insurance is simple in concept. You pay a premium, and if you die while the policy is active, the people you name get paid. That money can pay off a mortgage or replace years of income your family was counting on.
The hard part is choosing the right type and the right amount. Dobson Health Insurance Group compares life insurance policies from multiple carriers so you get coverage that fits your budget and actually covers what your family would need.
Why the policy through work usually isn't enough
Many employers offer free group life insurance, often one or two times your salary. It's a nice perk, but it has two problems.
It rarely replaces enough
One or two times your salary covers a couple of years of income at most.
It ends when you leave
That tends to happen when you're older and more expensive to insure. A personal policy stays with you no matter where you work.
Term, permanent, and final expense life insurance
Each type solves a different problem. Most families need only one.
Term life insurance
Term life covers you for a set number of years, usually 10, 20, or 30. If you die during the term, your beneficiaries get the death benefit. If you outlive it, the policy simply ends.
Whole and universal life
Permanent life insurance lasts your whole life as long as you pay the premiums. It also builds cash value over time, which you can borrow against.
Final expense insurance
A small whole life policy, usually somewhere between $5,000 and $50,000. It's meant to cover funeral costs and final bills so your family doesn't have to.
Term life insurance
Term is the least expensive way to buy a large amount of coverage. That's why it's the right fit for most families with young kids or a mortgage.
The idea is to match the length of the term to how long people will depend on your income. A 35 year old with a newborn and a new 30 year mortgage might pick a 30 year term.
Ask about conversion. Many term policies let you convert to permanent coverage later without a new medical exam. Ask about that before you buy. It can matter a lot if your health changes.
Whole life and universal life insurance
Whole life
Whole life has a fixed premium and a guaranteed death benefit. The cash value grows at a guaranteed rate. You pay for those guarantees, though. Whole life costs several times more than term for the same death benefit.
Universal life
Universal life gives you more room to adjust your premium and death benefit over time. Indexed universal life ties cash value growth to a stock market index, with a floor that protects you from market losses.
Permanent coverage makes sense in specific situations. Estate planning is one. Another is a child with special needs who will need support for life. Business owners also use it to fund buy and sell agreements between partners.
Final expense insurance
Final expense insurance is a small whole life policy, usually somewhere between $5,000 and $50,000. It's meant to cover funeral costs and final bills so your family doesn't have to.
Many final expense policies ask only a handful of health questions and never require an exam. That makes them a common choice for older adults and for people who have trouble qualifying for other coverage.
No medical exam on many policies
How much life insurance do you need?
A common rule of thumb is 10 to 12 times your yearly income. That's a starting point. A better way is to add up what your family would actually face without you.
Then subtract your savings and any life insurance you already have. What's left is roughly the coverage you need. We walk through this math with every client, and it usually takes about ten minutes.
Add up what your family would face
- Debts you'd want paid off, including the mortgage
- The number of years of income your family would need replaced
- Future costs like your kids' college
- Funeral and final expenses
What affects the price of life insurance?
Age and health
These drive most of the cost. The younger you are when you buy, the lower the rate you lock in for the full term.
Tobacco use
Tobacco can double or even triple a premium. Risky jobs and hobbies can raise it too, like flying small planes or scuba diving.
Exam or no exam
Some policies require a medical exam with bloodwork. Others approve you from health questions and database checks, sometimes within a few days. If you're healthy, a policy with an exam often costs less.
How we help you choose
We're independent, so we can quote several carriers side by side. That matters more with life insurance than people realize. Every carrier underwrites health differently. One company might charge you more for well controlled blood pressure, while another offers its best rate.
Knowing which carrier will look at your health history most favorably is where a good broker earns their keep. You get the policy and the price. We do the shopping.
Frequently asked questions
Is a life insurance payout taxable?
In most cases, beneficiaries don't pay federal income tax on a life insurance death benefit. Very large estates can face estate tax, so talk to a tax professional if that applies to you.
What happens if I stop paying my premium?
Most policies give you a grace period, typically about a month. After that, a term policy lapses and the coverage ends. A permanent policy may be able to use its cash value to keep coverage going for a while.
Can a life insurance claim be denied?
Yes, if the application had false or missing information. In most states, the insurer can review the application during the first two years of the policy. That's why we help you answer every health question accurately up front.
Can I cancel if I change my mind?
Yes. Every state gives you a free look period after the policy is delivered, often 10 to 30 days depending on the state. Cancel within it and you get your premium back.
Do I need life insurance if I'm single with no kids?
Maybe not much. If no one depends on your income, a small policy for final expenses may be enough. Buying a term policy while you're young and healthy does lock in a low rate if you expect to have a family later.
Want to know what coverage would cost you?
Call Dobson Health Insurance Group or request a free quote. We'll compare carriers and show you real prices, not estimates.
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