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 can help provide financial protection for the people or organizations you designate as beneficiaries after your death. A life insurance policy is a contract between the policy owner and an insurance company. In exchange for required premium payments and subject to the policy’s terms, the insurer pays an applicable death benefit to the designated beneficiary following the insured person’s covered death.

Life insurance is generally available in two broad categories: term life insurance and permanent life insurance. Term life insurance provides coverage for a specified period, provided the policy remains in force. Permanent life insurance is designed to provide longer-term or lifetime coverage as long as applicable policy requirements are met. Whole life and universal life are common types of permanent life insurance, and certain insurers may offer additional permanent life products.

The features, costs, benefits, and requirements of a life insurance policy vary depending on the type of coverage you select and the insurer. Some policies provide coverage for a defined term, while others are designed to remain in force for life and may include a cash value component. Policy availability, premiums, benefits, and other features can also depend on factors such as age, health, coverage amount, and underwriting requirements.

Choosing the right life insurance policy starts with understanding what you want the coverage to accomplish. Your needs may include helping replace lost income, paying a mortgage or other debts, covering final expenses, supporting children’s future expenses, or leaving financial support for loved ones. Learn more about
whether you need life insurance in North Carolina
and the factors to consider when evaluating your coverage 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 the insured outlives the term and the policy ends without being renewed or converted, a standard term life policy generally does not pay a death benefit. Policy features vary, however, and some products may include renewal, conversion, return-of-premium, or other options.

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 is a form of permanent life insurance designed to provide coverage for the insured’s lifetime, as long as required premiums are paid and the policy remains in force. Unlike term insurance, whole life does not expire after a set number of years and generally includes both a death benefit and a cash value component.

The cash value can accumulate over time according to the policy’s terms, providing an additional feature beyond the death benefit. Premiums are generally level, but costs, guarantees, cash value growth, and other features vary by policy and insurer.

With whole life insurance, you make required premium payments to keep the policy in force. Following the insured’s covered death, the policy pays the applicable death benefit to the designated beneficiaries. Because the coverage is designed to last for life rather than a specific term, whole life premiums are generally higher than those for comparable term coverage.

As the policy’s cash value grows, the policy owner may be able to access it through loans or withdrawals. However, loans and withdrawals can reduce the policy’s cash value and death benefit, may accrue interest, and can affect the policy if not properly managed.

Whole life insurance may be appropriate for people seeking permanent protection, a death benefit for their beneficiaries, and the potential to accumulate cash value. For more information about whole life insurance options in Raleigh-Durham, North Carolina, speak with a Barber Insurance Agency representative about available policies and coverage options.

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.

  • 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: he person or entity designated to receive applicable life insurance proceeds following the insured person’s death, subject to the policy and beneficiary designation.

  • Death Benefit / Face Value: The amount payable to eligible beneficiaries following the insured person’s covered death, according to the terms of the life insurance policy. Settlement and payment options may vary by insurer and policy.

  • Cash Value Account: A value that may accumulate within certain permanent life insurance policies. How cash value grows depends on the type of policy, and accessing it through loans or withdrawals may affect the policy’s value or death benefit.

  • Riders: Optional provisions that can modify or add benefits, features, or coverage to a life insurance policy. Available riders, eligibility, and costs vary by insurer and policy.

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Person filling out life insurance application.

The Secrets of Life Insurance Unlocked

How it Works

Life insurance policies generally involve premium payments and a death benefit. The policy owner agrees to pay required premiums, and the insurance company provides coverage according to the contract. If the insured dies while qualifying coverage is in force, the insurer pays the applicable death benefit to the designated beneficiary, subject to the policy’s terms. Eligibility and premiums can be influenced by factors such as age, health, medical history, lifestyle, coverage amount, policy type, and underwriting requirements.

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: A form of permanent life insurance that allows cash value to be allocated among available investment options. Policy values can fluctuate with investment performance, so variable life generally involves greater investment risk than traditional whole life insurance.

  • Universal Assurance: A form of permanent life insurance that may offer flexibility in premium payments and death benefits within policy requirements. Universal life policies may also accumulate cash value. Costs, guarantees, interest-crediting methods, and the amount required to keep coverage in force vary by policy.

  • Final Expense Assurance: Life insurance generally designed with a smaller death benefit that beneficiaries may use for funeral, burial, cremation, medical, or other final expenses. Whether final expense insurance is appropriate depends on the individual’s needs, budget, existing coverage, and available alternatives.

  • Simplified & Guaranteed Policies: These are different approaches to obtaining life insurance with reduced or limited medical underwriting. Simplified issue policies may use health questions and other underwriting information without requiring a traditional medical exam. Guaranteed issue policies generally do not use traditional medical underwriting but may have eligibility restrictions, lower benefit limits, higher relative costs, or graded death benefits and waiting periods.

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. As an independent insurance agency, we can help clients compare available life insurance options from the carriers we represent and evaluate coverage based on their needs and budget.

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

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