Life Insurance:
Is it for you?

September is an extra-special month for us here at Combined Insurance because it’s both Hispanic Heritage month and Life Insurance Awareness Month.  We have a diverse group of employees working every day to ensure our customers receive the best products to fit their needs along with excellent customer service, both in English and Spanish.  To help us celebrate, learn more about life insurance, whether or not it’s right for you, and if you have enough.

·       Contact our agents for a personalized consultation for yourself or your workforce

What is life insurance?

Life insurance is a way for your family to ensure that in the event of the death of a loved one, you are guaranteed a sum of money to be given to your family.

Almost anyone can take out a life insurance policy, but it is especially important for families who have young children.

Without income, your family could be put in the position of not being able to pay their mortgage or cover tuition costs. A life insurance policy can help take away the financial stress after suffering a devastating loss. Additionally, if the stay-at-home parent in your family passes away, the added expense of childcare could be financially difficult without a life insurance pay out.

Who needs life insurance?

If you have dependents, life insurance likely makes sense for you. Securing a policy gives peace of mind that coverage is there to assist your family members after you’re gone. It also allows you to guarantee your insurability, as long as you continue to pay your premiums. Starting young means you may pay a lower rate, but you’ll also pay more premiums over time.

Hispanic families have unique concerns and needs

We understand that the Hispanic population in the United States is a diverse group converging from many different countries and backgrounds, but according to the Insurance Information Institute Hispanic Initiatives^[1], the Hispanic community also has a lot in common and usually share similar values and a language.

Another similarity in the otherwise diverse Hispanic population is according to Hispanic Market Advisors, 93% of the Hispanic population believes that life insurance is important, yet 49% of the people who participated in their survey said they did not have enough life insurance coverage. 44% of adult Hispanics have no life insurance compared to only 37% of the non-Hispanic population^[2].

A study conducted by LIMRA (Life Insurance and Market Research Association) uncovered the unique characteristics and needs of Hispanic families and related the findings to the role of life insurance in their lives. It found that compared to the general population:

·       More Hispanics are middle income. Middle income families are more secure when they have a solid financial plan in place in case of the untimely death of the bread winner(s).

·       More Hispanics list family as their paramount concern. Purchasing life insurance shows family members that their well-being is of utmost importance to the individual who is covered.

·       More Hispanics worry about dying suddenly and providing for their families. Purchasing life insurance could help ease this worry.

·       Hispanics care more about company reputation. Below are some tips on how to choose a company.

·       More Hispanics want professional advice^[3].. Combined Insurance agents personally meet with their customers and take the time to make sure all questions are answered. To schedule a meeting with an English or Spanish-speaking Combined agent, visit Find an Agent.

Choosing a company

The first step in recognizing a quality insurance plan is proper education around the benefits and coverage the plan provides. Also, look for a company with credibility in the industry that:

·       Has an A+ Financial Rating

·       Is a BBB Accredited organization

·       Has longevity in the insurance industry

·       Makes insurance easy to understand

Types of life insurance

There are two main types of life insurance, term and whole life or permanent.

Term life is the simplest and most common, paying a benefit should the death of policyholder occur during the term of the policy. Terms can range from one to 30 years and rarely include other benefit provisions.

Level term policies have the same death benefit at any point during the term, while decreasing term policies decrease, usually annually, over the life of the term.

Whole life or permanent insurance lasts your entire life, no matter how long you live. The cost per $1000 of benefit amount increases as the policyholder ages. In order to offset later in life costs, younger policyholders overpay premium amounts early in their policies. Overpaid funds must be refundable should the policy be cancelled before it’s used. 

Whole or ordinary life insurance involves a death benefit with a savings account filled with dividends the company pays to you.

Universal or adjustable life insurance offers possible flexibility in terms of the amount of the death benefit and the option to alter monthly payments based on how much money has accrued in your related savings account. This flexibility can be helpful if your financial situation changes, but caution must be exercised. If the savings account overages are used, the associated policy could lapse.

Variable life insurance combines a death benefit with a savings account that can be invested in stocks, bonds and mutual funds. Interest-earning potential may increase the value of your policy more quickly, but is tied to the health of investments. The associated death benefit may decrease if investment performance is poor.

Variable-universal life insurance offers the investment risks and rewards of variable life combined with the ability to change premium amounts of universal life.

Deciding on life insurance plans

Each situation is different, and it is important that you consider your individual needs and the needs of your family once you are gone. Your agent can help you choose the right plan if you do decide that life insurance is right for you. Keep in mind Combined Insurance offers plans that:

·       Are flexible and can be tailored to the needs of an individual or family

·       Provide for benefit payments to be made directly to the policy beneficiary

Individualized help in English or Spanish

Combined Insurance embraces and enables its bilingual professionals to assist customers with their insurance needs. We offer training in Spanish or English and marketing and sales material are available in both languages in many states. Many agents can give product presentations in either language, ensuring they can properly serve Spanish-speaking customers.

Our website can easily go from English to Spanish with a click, and when customers call  customer service, they can request a Spanish-speaking representative.

Combined Insurance is truly committed to offering supplemental insurance to anyone who needs it, whether as an individual or through the workplace. To find an agent near you, visit our Find an Agent page.

[1] https://www.iii.org/sites/default/files/docs/pdf/hispanicsandinsurance111108.pdf

[2] https://www.hispanicmarketadvisors.com/articles/hispanic-and-latino-health-and-life-insurance-buying-patterns/

[3] healthyhispanicliving.com/insurance_security/behaviorial_tendencies/top_10_facts_about_the_hispanic_market_and_life_insurance. Accessed 14 Sept. 2017