Why Life Insurance Should be a Must for Most

Sadly, some people will die young. While many folks would rather not think about something as morbid as death, the simple fact is that you and your family must prepare for every contingency. If you or a loved one passes away, it will not only be an emotional burden but often a financial one as well. Fortunately, the right life insurance plans can mitigate risks. If you are considering life insurance plans, get in touch with AHI Group. We serve Olathe, KS and other communities and would be happy to explain various life insurance options to you.

The Financial Security Life Insurance Provides

Unfortunately, when someone passes away, a family will often lose many valuable resources. While the first consideration after death should be emotional and should focus on grieving, the simple fact is that death can leave a family in a dire financial situation. This will make it hard for the family to plan a funeral and to grieve.

That said, life insurance policies may provide financial assistance in the event of a death. To be clear, you’ll need to read the fine print of any insurance policy you’re considering, or you should work with an insurance agent. What is covered can vary from plan to plan. An insurance pro can help you select the right plan for your given situation.

The payout provided by insurance can greatly reduce stress for the surviving family members. The funds could be used to help pay for a funeral, cover mortgage payments, and fund child care. This will greatly reduce the stress for surviving family members, which in turn will help them focus on grieving and supporting loved ones.

Think you need to take out a life insurance plan?

Contact the AHI Group, which serves Olathe, KS and other communities.

Is life insurance a smart investment for millennials?

Within the landscape of personal finance, millennials may find themselves navigating a score of different options to secure their financial future. They’re a generation known for embracing change and redefining traditional norms – including their approach to investments. One topic that often sparks debate is the role of life insurance in a millennial’s financial portfolio.

A millennial is anyone born between 1981 and 1996. Millennials within this range may be approaching a variety of different milestones in life, but many, if they haven’t already, may be starting to think about their financial future. Life insurance is one of many options, but is it a smart investment?

Why buy life insurance as a millennial?

In 2024, a millennial is anyone ages 28 to 43. Within this age range, millennials may be getting married, having children, buying their first homes, starting businesses, etc. – all milestones worthy of life insurance protection. To put it simply, life insurance isn’t a purchase associated with a specific generation or a specific age. It’s a policy best purchased when the prospective policyholder has something worth protecting, or someone. Sometimes, this is an investment, like a home or business, but most of the time it’s a spouse or dependent(s).

We advise purchasing life insurance younger because life insurance is cheaper the younger you buy it, but in the end it’s something you should get when you need it, not just because you’ve reached a certain age. For example, purchasing life insurance to help pay off their mortgage for their family in the event of their unexpected passing is a no-brainer – and that can happen at 25, 30, 35, or even 40.

What reasons are there to purchase life insurance as a millennial?

The average age for purchasing a home in America in 2022 is 36, where the average age for purchasing a home in 2021 is 33. Millennials, being between 28 to 43, fall just in that range. Protecting your family from having to pay off your mortgage in your absence is just one reason why a millennial might buy life insurance, but it tends to be one of the more common incentives.

*Source from the National Association of Realtors (NAR).

Here’s some other reasons why a millennial might want to purchase life insurance:

  • To provide financial support for spouses, children, or other dependents.
  • To help cover financial obligations like loans, mortgages, or other debts.
  • To lock in lower premiums at a younger age.
  • To use as a tool for business continuation planning or to fund a buy-sell agreement.
  • To replace lost income, ensuring family members can maintain their standard of living.
  • To cover funeral and burial expenses for family members.
  • To provide liquidity in covering estate taxes or ensuring an inheritance for beneficiaries.
  • To ensure coverage before developing health issues at a later age.
  • For a sense of security – knowing loved ones are financially protected.

Like any individual in any age group, it’s essential for millennials to carefully assess their current needs or even work with an agent to determine if life insurance is a good choice for them.

What type of life insurance should a millennial buy?

It depends on the individual, really. There’s no clearcut answer, and with the range there is between the youngest and oldest millennials, it’s hard to say given that you could be at any one stage of life.

Some considerations for millennials buying life insurance include:

Current Financial Situation

  • Millennials with tight budgets may lean towards term life for cost-effectiveness.

Long-Term Goals

  • Consider whether lifelong coverage and a cash value component align with long-term financial goals.

Financial Responsibilities

  • Assess current and future financial obligations to determine the necessary coverage duration.

Investment Preferences

  • Decide whether the insurance policy should serve purely as protection or also as an investment/savings tool.

Flexibility Needs

  • Evaluate the need for flexibility in adjusting coverage based on life changes.

What’s the difference between term and permanent life insurance? In short, permanent life insurance offers lifelong coverage and usually features a cash value component, which accumulates with time. Permanent life insurance may be the better option for those who want to focus on estate planning and legacy, as well as a permanent solution for dependents who may need long-term care.

Term life insurance is better for the everyday millennial, or just someone who needs coverage over a set term (such as until kids are adults and financially independent, until mortgage or debts are paid off, and so on) and is often the more inexpensive option.

Financial Planning with AHI Group

As millennials, securing a robust financial future requires a nuanced understanding of the choices available. AHI Group’s expertise in providing comprehensive insurance solutions prompts an exploration into the distinctions between term and permanent life insurance. The focus here is on cost-effective alternatives that resonate with the budget-conscious approach of this generation. Additionally, delving into the integration of life insurance into a broader financial strategy is crucial. AHI Group’s insights into coverage, flexibility, and long-term planning can offer valuable perspectives tailored for millennials. Give us a call today to start the conversation.

Is Santa Clause Eligible for Life Insurance?

Life insurance is an excellent financial planning option that can be customized based on your present and future needs. One option, term life insurance, may be purchased to cover you for 10, 20, or even 30 years, where permanent life insurance is designed to cover the insured for their lifetime. Whichever you choose is dependent on your needs.

In the spirit of the holidays, let’s answer one frequently asked question about life insurance through a hypothetical. Many prospective policyholders often ponder the ideal age to purchase life insurance, while a specific group might be curious about the upper age limit for eligibility. To explore this topic, let’s pose the question: Is Santa Claus himself eligible for life insurance?

Would Santa Clause Be Eligible to Buy Life Insurance?

No. Why? Because he’s too old. If we’re going to consider Santa Clause’s real, historical age (yes – he was technically a real person!) then Santa Clause is roughly 1,740 years old. In most pictures, the jolly guy looks to be around 70, or even 80 at most. However, the true monk that would later inspire the Santa Clause fable was born in modern-day turkey in the year 280 A.D. Nimble for his age if he’s still travelling all over the world in one night to deliver presents to children!

Most life insurance policies (keyword here is most) will contain an “age 100 maturity date.” This means that when the insured person turns 100, their policy expires and coverage ends, even if they were still paying premiums up until that point. Most life policies will contain this maturing date, specifically those that were issued prior to 2004. Santa Clause, being well over the age 100 maturity date, might be ineligible for coverage. Of course, the keyword here is might. Not every policy is the same, and nowadays with people living longer than ever, many insurance companies have modified the maximum age for coverage from the ripe old age of 100 to an astonishing 121.

When Are You “Too Old” for Life Insurance?

Here’s an unsatisfying answer: it depends.

Every life insurance company is different. Every policy is different. Life insurance is interesting because as time goes on we start to live longer and are (generally) healthier, rules and regulations start to change. To ballpark it, most companies will not permit the purchasing of life insurance after age 65 or 70. This is usually specific to term life insurance, since some whole life insurers will allow coverage to be purchased up to age 85 or 90.

Coverage can be limited for some people when purchased after a certain age and some causes of death may be excluded from your policy. Odds are that since you’ve purchased life insurance at a later age, you’ve likely had some health issues or ailments pop up. For example, if you’d been a cancer survivor, death due to the reoccurrence of that cancer may not be covered by your policy.

Reasons Why a Senior Might Need Life Insurance

Life insurance is usually purchased at a younger age to secure coverage for some of the major milestones we experience in our 20s-40s. Most families purchase life insurance when they get married, have a new baby, buy their first home, are still paying off student debts, etc. In all of these instances, having insurance can help secure your family in the event of your sudden passing.

But why would someone purchase life insurance as a senior? Here’s some reasons:

  • To prevent outstanding debts from being passed on to family members
  • To help cover funeral expenses, medical bills, and education expenses for grandchildren
  • To support a spouse or partner as they continue to age
  • To provide a legacy for loved ones after you pass on

Life Insurance Options as a Senior

Although Santa Clause may not have much choice when it comes to life insurance options, given his age, there are still ways to get life insurance as a senior. Keep in mind that your premiums will likely be far higher than if you had purchased a policy much younger and you may be required to participate in a medical exam to determine your current health/eligibility for coverage.

In your 50s, you’re likely still eligible for some form of coverage through the majority of insurers. You’re likely eligible for most forms of whole life or permanent life insurance, and you may be eligible for term insurance through some providers (although as to which terms you can select will vary).

In your 60s, term life insurance options may be more limited. Odds are you’ll only be eligible for a 10-year term policy, but you can still choose from a variety of permanent life insurance options.

People in their 70s or about to turn 70 have even fewer options, but may be able to choose a 10-year term policy or a permanent plan to create an estate for your loved ones after you’ve passed on. Purchasing life insurance as a senior means you have fewer options and some causes of death may not be covered. However, if you’re looking for a way to protect your family and provide them some kind of payout in the event of your death, talk with an agent!

AHI Group is happy to discuss insurance options for seniors. Give us a call to discuss your current financial goals today. One of our agents will work with you to find you a fitting plan.

Riders You Can Add to Your Life Insurance

At AHI Group, we offer the residents of Olathe, KS life insurance that helps them provide for their families in the event of their death. Life insurance policies, like other types of insurance, offer riders or add-ons that let you customize the policy to your needs. Life insurance riders allow you to add additional utility to your policy. Some add to the premium, while others do not. Let’s explore the most common riders and what each does.

Life Insurance Add-Ons

Accidental Death Rider

The accidental death rider pays an additional amount to your beneficiary if you die in an accident. Some of these riders pay twice the face value of the policy, hence the name double indemnity policy.

Guaranteed Insurability Rider

Adding a guaranteed insurability rider lets you add coverage at a later date without a follow-up medical exam. This can come in handy as you age and have children since as your family grows, so should your amount of insurance. If you develop an illness that would otherwise preclude coverage, with this rider, it won’t keep you from adding to your policy.

Waiver of Premium Rider

A waiver of premium ensures that if you sustain a disabling injury or illness, you won’t have to keep paying premiums for your life insurance to remain active. The rider pays the premiums for you.

Long-Term Care (LTC) Rider

You have two choices when it comes to LTC – a rider on your life insurance or a standalone policy. The rider adds LTC coverage to your life insurance that accesses part of your death benefit as funds to pay for care in a residential facility.

Family Income Benefit Rider

This life insurance rider provides monthly income for your family when you die. Typically a rider added to the life insurance of the sole income earner in a household, this add-on protects your family’s ability to maintain their way of life and high living standards.

Accelerated Death Benefit Rider

An accelerated death benefit lets you access your death benefit while you live if you receive a diagnosis of a terminal illness. This rider can protect other family finances and fund your medical costs to fight the disease.

Child Term Rider

A child term rider adds term life coverage for your minor child to an existing parental life insurance policy. It pays a death benefit if your child dies during the term covered.

Protect Your Family with Life Insurance

Contact AHI Group serving Olathe, KS to ensure that you provide for your family in death. Let us help you provide your family with peace of mind.

4 Reasons Why You Need Life Insurance

Life insurance is one of the best ways to demonstrate how deeply you care for your loved ones. A common misconception is that life insurance is only necessary for wealthy families, but that isn’t true.

Here are four reasons why you need life insurance:

1. Life Insurance Can Enable Your Child to Go to College

Did you know that a whole life insurance policy can be cashed in when your child is ready to go to college? Even better, your whole life insurance policy benefits don’t need to be claimed as income on your child’s student loan application. Talk to your life insurance rep at AHI Group serving Olathe, KS to learn how it works.

2. Life Insurance Can Give You Cash When You Need it Most

Another reason to have a whole life insurance policy is its protection against life’s financial emergencies. You can borrow against your whole life policy without cashing it in—for any reason—including times when you have an emergency and need a life raft to get through a temporary financial setback.

3. Life Insurance Helps Your Family Survive

A term life insurance policy serves as an important resource for your family after your passing. With a policy like this in place, your family, their home, school and livelihood can all be safeguarded despite losing a primary source of income for the family.

4. Life Insurance is a Safety Net

After your passing, your family needs time to grieve. They may need to take time off work as they work through their emotions. The life insurance policy you provide gives your loved ones the safety net they will need as they cope with their loss, without having to fear lost wages.

Reach Out To Us

There are several life insurance options to consider. Contact AHI Group in Olathe, KS today to learn which kind of policy is right for your needs.

Is a whole life policy the right option for your family?

AHI Group is proud to serve the insurance needs of our friends and neighbors in the greater Olathe, KS area. Life insurance can provide useful protection for families to have in place. If you are wondering which type of policy is right for your situation, we are here to help. 

Are you considering a whole life policy for your family?

The main benefit of choosing a whole life policy to protect your family is the benefits that are available during your lifetime. Because this type of policy has a cash value in addition to its death benefit, it is often a top choice for families. This cash accumulation can help take care of many major life expenses for both you and your family.

If you are planning to pay for your children’s college education, or are looking for an effective way to boost your retirement savings, a whole life policy is an effective choice. Additionally, the funds associated with these types of policies can also be used for exciting purchases like a vacation home or to cover the wedding expenses for a family member.

Parents who want to protect their young families with a permanent policy can feel comfortable selecting a whole life policy. If you aren’t quite sure if this type of policy is right for your needs, it’s time to sit down with a local agent who can provide additional information. 

Call or stop by today to learn more!

If you are a resident in the greater Olathe, KS area, the team at AHI Group is here to help you with all of your insurance needs. Finding the right life insurance policy to protect your family doesn’t have to be an ordeal. Give us a call today and let us help!