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!