Life
When a person dies, there are many expenses that will need to be paid.  These expenses may include such items as funeral costs, burial expenses, current bills, and estate taxes.  In addition, there may be financial needs the insured would have met if they had remained alive.  These expenses could include family living expenses, mortgage payments, long-term debt, and college costs for children.  A life insurance policy’s primary function is to provide, upon death of the insured, an amount sufficient to pay for any or all of the preceding costs and expenses.  Which expenses or costs are to be provided for, and how much money will be needed is entirely up to the insured.

Contact us today for more information about Individual Life Insurance by calling Chris Rose at 931-684-3323 or email him at crose@hbcowan.com.
Frequently Asked Questions
 
How much life insurance should I have?
There are many and varied needs for funds upon the death of an individual, and all must be taken into account to arrive at a proper amount of insurance.  For simplicity, some authorities recommend a good rule of thumb to be five times your annual income.  Your agent can talk with you about your needs and goals, and illustrate how each item translates into a given amount of funds needed at the time of death.  He can also share how to account for other sources of income.
 
Does it matter how I die as to how much my beneficiaries will collect?
During the first two years of the policy period, there may be conditions (fraud, misstatement of age, suicide) that can affect the death benefit paid by the policy. Your agent can discuss these with you. After two years, the full policy death benefit is payable, regardless of the cause of death. (Some policies may also pay extra benefits in certain conditions, such as the insured dies in an accident.)
 
Will my beneficiaries receive the benefit in one lump sum, or will it be distributed over a period of years?
That is entirely up to you, or you can leave the decision to your beneficiaries. Both options are available.
 
Are there different types of life insurance I should consider?
Although there are many types of life insurance policies, nearly all are variations of two basic types - term and permanent. (A third type, known as "universal" life, is a combination of term, permanent, and various investment options. Its complexity is beyond the scope of this overview, but if you are interested, your agent can discuss if universal is a good fit for your life insurance needs and goals.)

Term insurance is exclusively death coverage.  The policies are written for a specific length of time (the “term” referred to in the name).  Common terms are one year, five year, and ten year, although longer terms may be available.  If the insured dies during the term of the policy, the death benefit is paid to the beneficiaries.  If at the end of the term the insured is still alive, the coverage ends.

Unlike term insurance, a “permanent” insurance policy (often referred to as “whole life” never terminates as long as the premiums are paid.  It also builds cash values in the policy that can provide valuable “living” benefits in addition to the death benefit.
2007 All Rights Reserved H. B. COWAN & COMPANY
710 North Brittain St. * Shelbyville, TN 37162
Phone 931-684-3323 * Fax 931-684-0907
www.HBCowan.com