Oklahoma Life Insurance FAQs
Mike knows a lot about insurance right here in Oklahoma. With years of experience, he can help you find the best coverage, at the right price, for your situation!
How much life insurance do I need?
At Lynnae Insurance Agency, we typically recommend clients to have at least 10 times your annual salary. Why? In most cases, life insurance is best used to replace income. If you make $60,000 a year and you pass away tomorrow, we want to make sure your income, which your family depends on, doesn’t stop.
At $60,000 a year salary with the recommended $600,000 policy your spouse will be able to invest the lump sum (which is tax-free!) and live off the interest. Throught history, the stock market has averaged 10% rate of return, which would give your spouse $60,000 a year for living expenses – thus replacing your salary.
What is the best type of policy for me?
Ask three different people this question, and you will likely get three different answers because it truly depends on what benefits are most important to you. If it is important that you have inexpensive coverage for a given amount of time, then Term insurance may be your best bet. If you would like a policy with a little more flexibility and have the opportunity for your life insurance premiums to earn a rate of return, then Universal Life may be the best option. If your main concern is keeping a policy for the rest of your life and have the opportunity for a tax free investment, then Whole Life is could be the best choice for you. As you can see, it all depends on what you feel is most important.
What is the difference between Whole Life and Term Life
The difference is based on the length of time the policy is in force. A Whole Life insurance policy does just what it says – it will last your whole life, where a Term Life Insurance policy lasts a given term – as in 10, 20, or 30 years. Whole life insurance also has an investment component to it as well which could allow you to recoup some of the higher premiums associated with Whole Life Insurance.
What is the process to set up a policy?
Setting up a new policy starts with filling in and signing a simple application. From there, a quick physical will be conducted (at the time and location most convenient to you), and your medical records will be reviewed. Once this is complete, your application will finish the underwriting process and a policy is issued.