Arizona Life Insurance Quotes
Arizona has one of the lowest mortality rates in the nation. According to the Kaiser Family Foundation, the death rate is 682 per 100,000 people. However, this low mortality rate doesn’t mean you should forget about obtaining life insurance. Having a good life insurance policy will help protect your loved ones from financial hardships if you pass away. Obtaining Arizona life insurance quotes will help you locate the best rates on the best policies.
Reasons to have Life Insurance
Life insurance should be a part of everyone’s financial portfolio. When searching for Arizona life insurance quotes, it is advisable to take into consideration the many reasons to have a good life insurance policy
- Income replacement. If both partners in your household earn an income, what will happen if one partner dies? You and your significant other may have planned for the future based on two incomes. Without this second income, the surviving partner may experience financial hardship. Life insurance can replace that second income.
- Mortgage protection. If you die, it may be difficult for your partner to pay the mortgage. Having life insurance will ensure that the mortgage will be paid and that your partner will always have a roof over their head.
- Funeral and burial expenses. Funeral and burial expenses now average close to $10,000 in the United States. It is often difficult for the surviving partner to pay for a proper funeral; life insurance will help pay these expenses.
- College Expenses. In the tragic event of a parent’s early death, life insurance benefits can be invested in a college fund to help pay the exorbitant cost of college.
How Much Life Insurance Do You Need?
When obtaining Arizona life insurance quotes, it is beneficial to know how much life insurance you need. The answer to that question depends on many factors: age, family situation, amount of savings, assets, and other personal information. One simple method is to figure out the amount of investment capital it would take to replace your income for 20 years. Other methods take into account the factors listed in the previous section: income replacement, mortgage protection, funeral and burial expenses, and college costs.
There are also many online calculators to help you determine the optimum amount of life insurance coverage. Using a few of these calculators will give you a general idea of the amount of insurance you should purchase.
Types of Life Insurance
When searching for Arizona life insurance quotes, it helps to know the different types of life insurance available.
- Term insurance. This is the most basic and usually the least expensive. The policy is written for a specified period of time and can be renewed when it expires.
- Whole life. This type of insurance offers permanent protection along with a savings component. Part of the paid premium accrues as cash value.
- Universal life. This is similar to whole life, but it is more flexible as premiums can be increased, decreased, or deferred. There is usually a guaranteed return on the cash value.
- Variable life. This type offers fixed premiums and control over the cash value portion. The cash value can be invested in stocks, bonds, money markets, or other investment vehicles.
- Universal variable life. This type allows you to control your investments and is generally a more aggressive type of policy. However, there are no guarantees except for the original face value of the death benefit.
Life insurance is an important component of any sound financial plan. When searching for the best Arizona life insurance quotes, it is essential to ask yourself some personal questions regarding your lifestyle and finances. Doing the proper due diligence on types of insurance, various insurance carriers, and how much insurance coverage you need, will help you look for the best policies and rates when researching Arizona life insurance quotes.
