Trusted Life Insurance in Raleigh-Durham, North Carolina

Providing for Those You Love, After You Are Gone

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Getting Started with the Basics of Life Insurance

What is it?

Life insurance in Raleigh, North Carolina, acts as a security blanket for your loved ones in the event of your death. It is a legally bound contract between the policyholder (you) and a qualified insurance provider, such as Barber Insurance Agency. It promises to pay a specific amount– specified in the policy– to your named beneficiary after your death in return for monthly payments.

Two main policy categories pay out life assurance: term and whole life policies. The specifics of your account will vary based on your chosen type of policy. For example, some policies expire while others are permanent. The important thing is that you find the best approach for your loved one’s needs.

Term VS Whole

The policy you choose determines what you pay, for how long, and the size of your death benefit.

Term Life Insurance

Term insurance is only valid for a specific amount of time. Suppose you pass during the allotted time frame. In that case, your beneficiary will receive a payout equal to the amount laid out in your contract. Knowing that your family is taken care of can provide peace of mind. The catch, however, is that the policy can run out while you’re still alive. If this happens, no money is paid or returned to the policyholder.

Term agreements are the most straightforward. They may last any number of years, depending on your assurance needs. In this contract, you agree to make monthly payments to an insurance agency for a set amount of time. In return, the agency promises to assure your beneficiary a set amount of money if your life expires. As a result, these policies have smaller premiums and are suitable for essential protection.

Most of these plans have options to extend or convert your policy to permanent assurance if you are approaching the end of your term. These accounts are an excellent way for someone to begin their policy journey before having a lot of extra income.

For more information on ways to customize term life insurance plans in Raleigh-Durham, North Carolina, speak with a Barber Insurance representative. Our pros can handle any life insurance question you have.

Whole Life Insurance

Whole life insurance policies are part of the family of permanent policies; however, they are the most common. You may also hear them called traditional policies. They guarantee your family’s security after you are gone. They also provide coverage that spans your lifetime, and you do not have to renew. They have a death benefit according to your premium but also include a savings account. This account builds cash value by depositing a piece of your premium into it and gathering interest.

Glossary of Terms

Understanding the Language of Insurance Policies

The number of different assurance plans makes finding the right one confusing. Of course, having an agency you can trust will help. Still, understanding the words they use will make a massive difference.

The definitions listed below are a few primary expressions used in most life insurance policies. Consulting these definitions will help you understand the differences and find the right plan.

  • Premium: A premium refers to one or more payments promised to an insurance company in return for life assurance. Depending on your policy, part or all of the payment goes towards the death benefit.

  • Policyholder VS Insured Person: Confusing these definitions is easy to do. By nature, they are very similar and typically refer to the same person. However, it is not always that simple. The insured person refers to the individual covered under the insurance policy. The policyholder, on the other hand, is the person who owns the account and is paying the premium.
  • Beneficiary: The beneficiary is the person who receives assurance once the payout process triggers. It is typically a family member, but it can be anyone of your choosing.

  • Death Benefit / Face Value: Death benefit refers to the amount of coverage paid out to the beneficiary. The company typically pays it in one of two ways; either it is distributed by month, acting as a source of income, or in one lump sum. How the beneficiary receives death benefits depends on how the account specifics.

  • Cash Value Account: Cash value accounts are only included with permanent policies and refer to additional funds accrued through fixed interest rates and premium payments. Most cash-value accounts act like savings but can also act as investment accounts.

  • Riders: Riders referred to several optional add-ons that can increase a policy’s value, flexibility, and features. They are commonly added to term policies. Many different riders exist. Check with your Raliegh-Durhman, NC, Barber Insurance agency to determine your options.

The Secrets of Life Insurance Unlocked

How it Works

Assurance policies must include a minimum of two things: a premium and a death benefit. Policyholders agree to pay the premium in return for a guarantee that the agency will pay a specific dollar amount to the beneficiary. The insured must qualify for coverage by meeting certain health and age requirements. Likewise, policy premiums rely on the likelihood of the customer needing assurance. That means age, health, medical history, and lifestyle are used to determine what policies an individual qualifies for and their premium cost.

Several factors determine the premium of an insurance plan: 

  • Age
  • Gender
  • Health
  • Tobacco Use
  • Driving Record
  • Family History
  • Lifestyle (Hobbies and Occupation)

Many of them are outside of your control, but there are also steps you can take to lower the cost before or during your coverage. Speaking with a barber insurance agent may be your best option for determining your monthly payment.

The most critical factors are health and age. Ensuring a policy before you need it is always the best option. However, during the agreement, you can request a health reevaluation if you have made positive improvements. It will not increase your premium but could bring it down.

Life insurance is for the benefit of the people you love. It is an assurance of care for once you’re gone. Therefore, anyone with dependents should have a policy. Families who cannot afford funeral expenses or young adults wanting to lock in on a low premium are also good candidates.

The truth is that most of us care about at least one person. The purpose of life insurance is to ease the burden of your death financially so that those you love can focus on what matters: moving forward and honoring your memory.

The most important question to ask yourself before purchasing a policy is why you are doing it. Often it can take care of burial expenses or debt left after death. Parents may also want to lock in lower rates for their children while they are still young and healthy.

Other Kinds of Life Insurance Policies

Pinpointing Your Specific Needs

Many different life insurance plans exist and can meet the needs of many situations. Below are just a few types of insurance agreements offered by Barber Insurance Agency. For additional policies, be sure to reach out to your local agent.

  • Variable Assurance: The permanent assurance of a death benefit that includes an investment savings account. This type of savings builds up more quickly but comes with more risk.

  • Universal Assurance: this is another type of permanent account. However, it is more affordable because you can choose your premium rate. There is less money being put into the cash savings account every month. Still, it is an excellent option for people wanting to start on their nest egg early.

  • Final Expense Assurance: this is the best insurance policy for older adults without an assurance plan. It provides coverage for the funeral, burial/cremation costs, and medical care. These premiums are high but an excellent option for families that cannot afford the cost of funerals.

  • Simplified & Guaranteed Policies: These are two different types of policies that may make obtaining life insurance easier. Neither requires a medical exam for approval but guarantees coverage as long as the premiums are paid.

Experienced, Knowledgeable, and Helpful

Trusted Life Insurance from Barber Insurance Agents in Raleigh, NC

Barber Insurance Agency is here to ease the burden of Life Insurance in Raleigh-Durham, North Carolina. We believe that the people you love should never have to pay for your death but continue enjoying your life. Searching for assurance policies is, by nature, a very anxiety-provoking process. No one likes thinking about their demise or its toll on their loved ones.

Allow Barber Insurance to relieve your burden. Our customer-first attitude has made us known for being experienced, knowledgeable, and helpful in Raleigh, North Carolina. In addition, as an independent agency, we can offer the best pricing and coverage.

Give us a call today and speak with an experienced agent. We will show you how being covered truly feels.

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