Should You Choose Whole Life or Term Life Insurance?

When you know that you need life insurance, figuring out what you need and how much of it can be complicated. One of the most significant decisions is about the type of life insurance. There are whole-life policies and term-life policies, and there are a lot of differences between them. Understanding how these policies differ before you make your choice is a good idea.

When you need to find a life insurance plan, call DJ Kauffman Agency in Hutchinson, KS. 

Whole Life Insurance 

Whole life gets its name from the amount of time that the policy lasts – for your whole life. It never expires. It can’t be canceled as long as you pay for your policy. This allows people to have their policies still when they become elderly. Term life doesn’t work this way. But with whole life, you never have to try to get another policy. You can keep this one as long as you like. These policies also come with a cash value that becomes available for you to borrow over time. Term life policies don’t have this benefit. However, whole life policies are more expensive. Many people can’t fit this type of policy into their budgets. 

Term Life Insurance 

As the name suggests, this type of life insurance is suitable for a certain term. During that term, the policy is in effect. However, the term ends, and this causes the policy to expire. No cash value builds up, either. However, this type of life insurance is highly affordable. It’s often the best type for a family that has a tight budget and needs life insurance in place. 

Get Your Life Insurance Policy

Call us at DJ Kauffman Agency in Hutchinson, KS, if you need a policy. 

Four rules to follow when you buy life insurance

Consumers in Hutchinson, KS need to realize that choosing a life insurance policy is a big decision. At DJ Kauffman Agency, we offer life insurance policy that can protect your finances.

You need to follow numerous rules to find the best life insurance policy for your family’s situation. Here are four rules to follow when you buy life insurance. 

Be honest about any health conditions you’ve been diagnosed with

Consumers should realize that claims on their life insurance policy could be denied if they weren’t honest when they initially applied for a policy. That’s why it’s so important for consumers to be honest about the health conditions they’re experiencing when they buy life insurance. 

Compare policy options among different life insurance providers

Policies from different life insurance providers can vary in terms of cost and coverage options. Consumers, therefore, need to do their research and explore policy options before choosing a provider to buy their life insurance coverage from. 

Know what the financial needs of your beneficiaries are

Doing the math is important for any consumer who is buying health insurance. Consumers need to calculate how much their beneficiaries will need to receive from their life insurance policy to maintain their lifestyle and avoid financial hardship if a claim needs to be filed. 

Reevaluate coverage periodically

It’s possible to update life insurance coverage in the future. Consumers need to reevaluate their life insurance coverage to ensure that it will still meet the needs of their beneficiaries. 

Are you in the market for life insurance in Hutchinson, KS? Call us at DJ Kauffman Agency to get a quote on a life insurance policy. 

Why should someone get life insurance in Kansas?

Anyone that lives in the Hutchinson, KS area will want to know that they are adequately supported and covered with insurance. As you are looking to properly protect yourself in the Hutchinson area, it would be a good idea also to have life insurance. There are many reasons to get this type of coverage when you live in this area. 

Provide Financial Protection for Dependents

A top reason that all people will want to get a life coverage plan is so they can offer protection for financial resources for any dependents. If you have individuals who rely on you for their financial resources, you will want to ensure they have support if you pass away. When you get a life insurance plan, you can customize it to meet your dependents’ needs to ensure they have this support and peace of mind. 

Investment Alternative

A life insurance plan can also be a great investment alternative. Investing in whole-life coverage can be an excellent addition to your plan when preparing for the future. With a whole life plan, a portion of your payment will go towards life coverage, and the balance will build up an account with interest. Over the years, this will add up and can be a great asset to close out and sell or pledge as loan collateral. 

If you want a life insurance policy and live in the Hutchinson, KS area, it would be a good idea to call our team with the DJ Kauffman Agency. There are always complexities that come with selecting this coverage, and our professionals at the DJ Kauffman Agency can help you build a plan that will meet your needs. 

Can I change a term life insurance policy to a whole life policy?

Unfortunately, you cannot commute a term life insurance policy into a whole life policy in Hutchinson, KS. This is because they are different insurance products. However, DJ Kauffman Agency can help you cancel your term life policy and start a new whole-life policy.

Term Life Insurance

Term life insurance policies only cover the policyholder for a fixed amount of time, often 10, 20, or 30 years. Your beneficiaries will receive a death benefit payout if you die during the policy term. The policy will expire without any death benefit payout if you survive the term.

You can also cancel the policy. If you don’t make your premium payments, the policy will be automatically canceled after a grace period. You can also end the policy by contacting your insurer.

Whole Life Insurance

A whole life insurance policy is permanent life insurance that covers you for your entire life. A whole life insurance policy continues for the rest of your life as long as you keep making premium payments. If you die while the policy is active, your beneficiaries will get a death benefit payout.

One of the major benefits of whole life insurance is that it offers lifetime coverage. If you’re looking for coverage that will last your entire life, then whole life insurance is the way to go. However, because it offers lifetime coverage, whole life insurance is much more expensive than term life insurance.

Contact DJ Kauffman Agency Today

If you’re located in Hutchinson, KS, the team at DJ Kauffman Agency would be happy to help you make the change from a term life policy to a new whole life insurance policy. Contact us today to get started!

How Much Life Insurance Do I Need?

Talking about life insurance may feel morbid because the death penalty is only paid out if the policyholder dies. It is one of the most effective and best ways to ensure that you provide for your loved ones should the worst happen. Although there are many life insurance options, the two most popular are term life and whole life insurance. As the name implies, term life insurance is only valid for a specific period – usually 10, 20, or 30 years. If you die within the active period of the policy, your beneficiaries will receive the death benefit that you select when the policy is first opened. Conversely, whole life insurance is valid from the day it is processed to when you die – assuming that the premium continues to be paid. Although whole life insurance is the most expensive of the two options, it does include a cash value component that grows with time and can serve as a lifeline in times of financial need through a loan if necessary.

When deciding how much life insurance to purchase, you’ll want to consider your total assets. Start by adding your obligations such as a mortgage, student loans, and credit card loans together, and then include future needs like funding a child’s college education. You’ll want to be sure that you purchase enough life insurance to cover all your outstanding debts and anything that you are saving for in the future. 

For help in knowing how much life insurance to purchase, give DJ Kauffman Agency in Hutchinson, KS a call. We’ll help determine the appropriate amount of life insurance needed while also helping you choose between term and whole life. Give us a call today to learn more information. 

Common Myths About Life Insurance

Life insurance is a complex subject, and many people do not want to discuss it. It is also a very controversial type of insurance: almost everyone has an opinion about who does and does not need it, what types of life insurance policies are the best, and how much to buy. Here is a list of a few most common myths about life insurance with an explanation of why these myths have nothing in common with reality. 

Common Myths About Life Insurance

  • Only breadwinners need life insurance. A stay-at-home partner may not have an income, but they keep the household running, including meal preparation, cleaning, transportation, taking care of kids, and other things. With that partner gone, life will definitely get much more challenging and more expensive. 
  • Life insurance is expensive and for wealthy people only. Many people mistakenly believe that life insurance costs a lot of money. However, the truth is that most life insurance policies are quite affordable. The average price of life insurance today is about $16 a month. 
  • Single people without dependents do not need life insurance. If you want to leave a legacy, support yourself during retirement, or protect yourself if you are disabled or injured, you should consider buying a life insurance policy. Moreover, it is important to remember that a dependent is not always a child  – a dependent is also an elderly parent or a relative with special needs.

DJ Kauffman Agency Serving Clients in Hutchinson, KS – An Insurance Agency You Can Trust

If you live in Hutchinson, KS or any other nearby town, and you are thinking of getting a life insurance policy, DJ Kauffman Agency is ready to help you choose a policy addressing your personal needs and preferences. For more information about insurance options available, feel free to visit the company’s website or call. 

Converting Term to Whole Life

If you are a term life insurance holder in Hutchinson, KS, and you don’t want to keep this policy, you can easily convert it to whole life insurance without difficulties. According to DJ Kauffman Agency, it is even easier to convert your life insurance policy than to buy a new one. Here are some of the stages you have to follow when converting from term to whole life insurance policy. 

Check Whether Conversion is an Option

The first step is checking whether your term insurance gives you an option to convert to whole life insurance. Generally, most insurance companies offer this option, but some remain silent on the whole conversion process. It is always necessary to understand the options available for you before starting the process.

Check the Conversion Period

Another important detail that you need to check is whether you are still within the conversion period. There is a tendency for some insurance companies to input an expiry date where you cannot convert your policy. However, most companies leave it open for you to choose and decide whether you want to convert at any given date.

Check Conversion Costs

Generally, when you move from term life insurance to whole life insurance, you are changing from one insurance product to another. Every product has different costs. So, you need to analyze the conversion costs. Insurance companies may want to benefit from the whole conversion process by adding unnecessary costs. However, some organizations can leave it open and cheap for you because you will remain a customer. 

DJ Kauffman Agency has been helping life insurance customers in Hutchinson, KS, to convert term life insurance to whole life insurance within a day. As a leading life insurance company, we believe in giving our customers flexible options to enhance their satisfaction.

How much life insurance is enough

Life insurance is not something that most people know a lot about. It is rarely discussed, and certainly, it isn’t taught in school. If you ask ten people how much life insurance is enough, you would likely get ten different answers. One thing for sure, life insurance is not one size fits all. When it comes to how much life insurance is enough, having the help of a knowledgeable insurance agent makes the process much less intimidating. For residents of Hutchinson, KS, the DJ Kauffman Agency Inc. has the answers you are looking for. As independent agents, we can offer you products from some of the top carriers in the business. 

Experts suggest that you should have between seven and ten years of income in life insurance. If you are single without dependents, this may be more than you need, and if you have five children and a spouse, this may not be enough. So, how do you decide how much life insurance is enough? Firstly, you need to ask yourself some questions. 

  • Do I have anyone who is dependant on my income? This can be a spouse, aging parents, children, or anyone else who needs you to provide for them. How long will they be dependent? Do you have young children, and do you want to provide for their college education? 
  • Do you have debt? A mortgage, car payment, credit card debt, anything that might have to be paid by your survivors? 
  • Have you taken care of your final expenses? 
  • Do you want to leave a legacy to your children or grandchildren? 

The answer to these questions will help you determine how much life insurance is enough. When you are ready to discuss your life insurance needs, the team at DJ Kauffman Agency Inc. in Hutchinson, KS will be there for you. Give us a call or stop by and let us explain the life insurance options available and give you a free quote. 

The Basics of Life Insurance

Life insurance is a financial tool that can provide security for your family. Many new parents may be concerned about what will happen to their spouse and children if a parent dies. Life insurance provides that much-needed safety net. It can be used in many ways including paying off remaining debts and funeral expenses. Our team at DJ Kauffman Agency Inc. works with individuals and families throughout the Hutchinson, KS area to serve their insurance needs.

Life Insurance Options

Life insurance policies are available in two primary types: term life and whole life. Both types offer advantages in certain life situations. An important consideration is the impact of inflation and the estate taxes that will be incurred. This will affect the type and amount of coverage that you choose. Term life policies are active for a defined period of time. However, they can be renewed. While the premiums are lower than whole life insurance, the premium increases every time it is renewed. It’s important to note that term life policies do not build cash value. 

Whole life insurance policies stay active during the life of the policyholder. They do carry a higher premium but they also develop cash value. When needed, the policyholder can borrow against it.

There are many benefits to a good life insurance policy. Your children’s future education is assured. It can also be used to pay off a mortgage, as well as, final expenses. Some earmark certain funds for charitable purposes they support.

At DJ Kauffman Agency Inc. in Hutchinson, KS, our agents can talk with you about the advantages of different life insurance plans. They are ready to get you started on the path to protecting your family. Selecting a plan and policy amount requires some thought. Call us to get started today!