7 Life Insurance Terms You Need to Know June 1, 2023 You probably already know that life insurance is a way to protect your loved ones financially if something happens to you. But do you know all the terms that go along with it? Don’t worry, we’re here for you. Keep reading as we break down seven life insurance terms that you should know about while considering your options. Term life insurance Term life insurance provides coverage for a specific period of time, usually 10-30 years or the number of years until you reach age 65. If you pass away during the term, your beneficiary will receive the death benefit. This option is perfect if you’re just starting out, raising your family or building your business. Whole life insurance Whole Life provides coverage for–you guessed it–your whole life, as long as you pay the premiums. It also accumulates a cash value over time, which can be borrowed against or used to pay premiums. This type of policy is typically more expensive, but it offers more long-term financial protection. Universal life insurance Universal Life insurance is similar to Whole Life, but offers more flexibility. You can adjust elements of the policy, such as premium payments and death benefits, as needed. This type of policy is often used as an investment vehicle, as the cash value can grow over time. Universal Life is a good option if you want to have life insurance and save for retirement at the same time. Now that we’ve talked about the different types of life insurance, let’s dive into some more general terms. Beneficiary A beneficiary is the person (or people) who will receive the death benefit from your life insurance policy if you pass away. It’s important to designate a beneficiary so that your loved ones know who to contact and how to receive the funds. Lump sum When it comes to payout options, a lump sum is usually the default for most life insurance policies. This means that your beneficiary will receive the entire death benefit in one large payment. While this can be helpful for those who need the money immediately, it may not be the best option for everyone. Talk to your local OKFB agent to discuss payout options. Retained asset account A retained asset account is like a checking account for your beneficiary. Instead of receiving a lump sum payment, the insurance company holds onto the payout in an interest-accruing account. Your loved ones can then write checks from the account as needed. This option can be helpful if your beneficiary isn’t quite sure how to manage a large sum of money. Pre-death benefits Did you know that some life insurance policies allow you to access the death benefit while you’re still alive? Pre-death benefits, also known as accelerated death benefits, can help you pay for medical expenses or other costs associated with a terminal, chronic or critical illness. While it may not be the most lighthearted topic, understanding these terms can help you make informed decisions about your financial future. We’re Here to Help Whether you’re shopping for life insurance or want to update your policies, we have agents who can help. If you have questions or concerns that you want to discuss, connect with your local OKFB agent today. If you have any insurance-specific questions, we would love to help you find the coverage that best meets your home, auto, commercial and life insurance needs. Don’t forget to follow us on social! This kind of information and more is just a click away. You can find us on Facebook, Instagram and LinkedIn.
3 Things to Consider Before Getting Married June 1, 2023 Congratulations, lovebirds! You’ve found the one and are ready to embark on a new journey together as newlyweds. Marriage brings many changes, including combining your lives and everything that comes with them. While moving in together and honeymooning may be exciting, it’s important not to overlook the practicalities of managing your assets as a couple. Here are three things to consider as newlyweds, or even before you tie the knot. Auto Insurance If you don’t already own or share a car together, you might have different auto policies from different insurance companies. However, as a married couple, it’s typically best to combine your policies into one. Why? Because you’ll get the convenience of having one bill to pay, and you might qualify for discounts as a result, since a policy with more than one vehicle is often cheaper than separate policies. It’s a win-win situation! Home or Renter’s Insurance If you’re moving in together or buying a new home, it’s time to talk insurance. Make sure your home or renter’s policy covers both of you and your new shared assets. This can include your electronics, furniture and any other personal belongings. Don’t worry, our OKFB agents can help you assess your coverage needs and make sure you’re protected in the event of a loss. Need another reason to combine home policies? Getting married typically tends to lower your premiums, though savings will depend on your specific policy. Life Insurance It’s not the most romantic conversation, but it’s important to discuss life insurance. If something were to happen to one of you, it’s crucial to ensure the other has financial protection. A life insurance policy can provide financial support for funeral expenses, debt and income replacement. Plus, the younger and healthier you are when you purchase life insurance, the less expensive the policy will be. Consider getting a policy for your new or soon-to-be spouse. We offer three types of Life Insurance policies: Term Life, Whole Life and Universal Life. Talk to your local OKFB agent to see which option is best for you and your family. Combining your policies and considering life insurance for your new or soon-to-be spouse are key to discuss as a newlyweds or before getting married. These are practical steps that can help you save money, protect your assets and ensure that you and your partner are financially secure in the long run. When it comes to insurance, you can trust OKFB Insurance to be your partner every step of the way. We’re Here to Help Whether you’re a long-time policyholder or just starting to look for insurance options, we have team members who can help. If you have questions or concerns that you want to discuss, connect with your local OKFB agent today. If you have any insurance-specific questions, we would love to help you find the coverage that best meets your home, auto, commercial and life insurance needs. Don’t forget to follow us on social! This kind of information and more is just a click away. You can find us on Facebook, Instagram and LinkedIn.
Top Insurance Questions Answered by Insurance Agents – Part 3 April 11, 2022 Insurance can be confusing and that’s why some of our agents took the time to answer a few of the most frequently asked questions. If you have any other questions or need additional clarification, please do not hesitate to reach out and contact your local OKFB agent today! What is Insurance? Insurance is a contract between you and a provider. You pay your premiums (typically monthly or annually) and an insurance company agrees to pay for your covered losses. It can help protect you from the financial consequences of unexpected events, such as car accidents, fires, or theft. What Does Homeowners Insurance Cover? Homeowners Insurance can help protect your home and possessions from damage or loss due to covered perils. This can include fire, windstorm, hail, water damage and theft. It also offers personal liability coverage. It can also help financially protect you if you are sued for causing property damage or someone is severely injured at your home. What Does It Not Cover? Every home policy is unique to each individual, location, cost of a home, and past credit history. To cover other aspects, you may need extended coverage. Have an open conversation with your agent about which parts of your policy may need to be expanded (i.e. by-laws, earthquakes, floods, etc.). However, typical wear and tear is not covered and should be maintained over time. What Does Auto Insurance Cover? Auto coverage can help financially protect you if you are in covered accident. It may cover damage to a car, as well as potential medical expenses and property damage incurred by you or other people involved in the accident. Does a Small Business Need Insurance? A business that is run through your home by one or two people might not need workers’ compensation insurance, but it could need more coverage than your average homeowner’s policy. Make sure to double-check your home liability and property policy to see whether you are financially covered. Be sure to stay in touch with your OKFB agent about your business coverage needs. What is the Difference Between Term Life and Whole Life Insurance? Term life insurance provides coverage for a specific period of time, such as 20 years. Whole life insurance provides coverage for your entire life. Term life typically has lower premiums than whole life, but it does not build cash value. Whole life typically has higher premiums than term life policies, but it builds cash value over time. We hope you found these questions and answers helpful! If you have any other questions, please do not hesitate to connect with us. We would be happy to help you find the coverage that best meets your home, auto, commercial, and life insurance needs. Don’t forget to follow us on social media! This kind of information and more is just a click away. You can find us on Facebook, Instagram, and LinkedIn.
4 Tips for End-of-Life Planning January 31, 2022 Whether you practice healthy eating habits or exercise daily, it’s important to do end-of-life planning to help ensure that you receive the care needed and can allocate assets to your loved ones. Unsure of where to begin? Here are our top four tips to consider when creating an end-of-life plan: Gather Important Documents A good first step is to gather all your important documents and paperwork. For example: Social Security card Birth certificate Power of attorney Bills and bank statements Insurance policies Note that when you’re not accessing these documents, it could be good to ensure they are stored in a safe place, like a fireproof safe or safety deposit box. Remember to let your executor or a family member know where and how to access these documents in case of an emergency. Determine End-of-Life Care Two of the most crucial aspects of end-of-life planning is determining what care you plan to receive and identifying who will be helping you along the way. For instance, if you’re unable to make decisions for yourself, the person you identify in an advance directive can choose the course of treatment you receive. Creating an advance directive is one way to ensure your family knows what your wishes are. A health care provider can help with this process and can answer any questions you may have. Consult an Estate Lawyer End-of-life planning can be an overwhelming process, and important decisions could be overlooked. Consider consulting an estate lawyer as they can help with the following documents: Living Will Last Will and Testament Living Trust Letter of Intent Financial Power of Attorney Health Care Power of Attorney Letter of Competency Organ Donor Card Do Not Resuscitate Order HIPAA Release Ensuring these documents are prepared can provide peace of mind and may even reduce stress for your family during a difficult time. Decide on a Life Insurance Policy If you haven’t already, consider purchasing a life insurance policy and designate your beneficiaries. Life Insurance policies could help your family continue to pay bills and other expenses after you pass. Oklahoma Farm Bureau Insurance offers three types of Life Insurance policies: Term Life Whole Life Universal Life Term Life Term Life policies can protect your family or business for a set amount of time, or a set “term.” Once the determined term ends, so does the coverage. Learn more about Term Life Insurance. Whole Life Whole life policies insures an individual for their entire life. It offers financial protection for your loved ones and gives them access to an accumulated cash value that was determined with your insurance provider. Learn more about Whole Life Insurance. Universal Life Life is full of unknowns, so you may prefer a plan with some flexibility. Universal Life is similar to a Whole Life insurance policy, but it allows you to adjust elements in your policy along the way, like premium payments and death benefits. End-of-life planning is all about ensuring that your loved ones are protected. If you want to make changes to your existing policy, or are thinking about purchasing a plan, contact your local OKFB agent to discuss your options. Our life insurance calculator is also a great tool to help you understand the amount of coverage that’s right for you.
