Sixth Tip for Getting Life Insurance In Volusia County

Sixth Tip for Getting Life Insurance In Volusia County – Keep Your Current Policy. Before deciding to cancel or replace your existing life insurance policy, it’s essential to understand the potential benefits of keeping it and the implications of making a change. 

Here are several reasons why you might want to keep your current life insurance policy:

1. Age and health considerations

• Premiums based on your original health status: Your current policy’s premiums were likely based on your age and health at the time you purchased it. If your health has declined or you’ve aged since then, a new policy might come with significantly higher premiums, or you may not be able to obtain coverage under the same conditions.
• Potential insurability issues: If your health has deteriorated, you may even be considered uninsurable for a new policy. 

2. Established cash value (for permanent policies)

• Tax-deferred growth: Permanent policies like whole life insurance and universal life insurance accumulate cash value on a tax-deferred basis.
• Access to funds: This cash value can be a valuable resource during your lifetime, offering options like taking out loans or making withdrawals to address financial needs.
• Lower surrender charges: The longer you’ve held a permanent policy, the lower the surrender charges you might face if you decide to surrender it (cancel it to receive the cash value). 

Sixth Tip for Getting Life Insurance In Volusia County

3. Potential for grandfathered features or riders

• Policy features: Some older policies may have features or riders that are no longer available or are more expensive in newer policies, according to Abrams Insurance Solutions.
• Conversion options: Term life insurance policies may include a conversion clause that allows you to convert to a permanent policy without a new medical exam, which could be particularly beneficial if your health has changed. 

4. Avoiding surrender charges and potential tax consequences

• Surrender charges: Canceling a policy early, especially a permanent one, can result in surrender charges that reduce the amount of cash value you receive.
• Taxable gains: If the cash value you receive upon surrender exceeds the amount you’ve paid in premiums (your basis), the difference may be taxable as ordinary income. 

5. Stability and planning

• Consistent premiums: Many permanent life insurance policies offer level premiums, meaning the cost of coverage won’t increase over time.
• Estate planning: Life insurance can play a crucial role in estate planning, helping to cover estate taxes, provide for dependents, or equalize inheritances. 

In conclusion, keeping old policies allows you to review them and ensure that your current coverage adequately fills any gaps that may have existed in the past. Tax Considerations are also a great reasion to deteremine. Certain types of insurance may have tax implications, and retaining the policy could be necessary for record-keeping.

Therefore it’s crucial to evaluate your current life insurance policy carefully in light of your current and future needs, health status, and financial goals before considering any changes. Sixth Tip for Getting Life Insurance In Volusia County

So, before you buy an insurance policy, make sure you take the time to read the entire policy and understand all the terms and conditions. That way, you can be sure you’re getting the coverage you need at a price you can afford.  

We offer life insurance to families located in Deland, Debary, Orange City, Deltona, Port Orange, Lake Helen, Ormond Beach, and New Smyrna Beach. We are also able to protect families throughout all of Central Florida.

Thanks for reading Sixth Tip for Getting Life Insurance In Volusia County from your friends at Joyanna Insurance.

Please learn more about us by checking out our home page today! We proudly serve all of Central Florida for Life Insurance and other useful retirement products. Hopefully, we can assist you, too. Remember to follow us on Facebook!

Sixth Tip for Getting Life Insurance In Volusia County