Life Insurance

Life Insurance for Terre Haute and Wabash Valley Families

Crapo Insurance Agency helps individuals and families in Terre Haute and the Wabash Valley understand their life insurance options and determine an amount of coverage appropriate for their circumstances.

Life insurance needs are personal. Your family, income, debts, future plans, and existing financial resources can all affect the type and amount of protection you may want to consider.

What Can Life Insurance Help Protect?

The primary purpose of life insurance is to provide a death benefit to the beneficiaries you designate when the insured person dies while the policy is in force and its requirements have been met.

Depending on your circumstances, life insurance proceeds may help your family address needs such as:

• ongoing household expenses
• mortgage or rent payments
• outstanding debts
• final expenses
• child care
• education expenses
• replacing lost income
• maintaining financial stability during a period of adjustment

The Indiana Department of Insurance recommends considering both immediate expenses following a death and longer-term financial needs when evaluating how much life insurance may be appropriate.

How Much Life Insurance Do You Need?

There is no single amount of life insurance that is right for everyone.

A useful starting point is to consider who relies on you financially and what expenses they would face if you were no longer there to provide income or support.

Questions to consider can include:

• How much income does your household depend on you to provide?
• How much remains on your mortgage or other significant debts?
• Are children or other family members financially dependent on you?
• Would your family need help with college or child-care expenses?
• What savings and other financial resources would remain available?
• What immediate expenses could arise after your death?
• How many years of financial support would your family need?

Rather than choosing a policy amount based only on a general formula, we can help you discuss these considerations and understand the available coverage options.

Term Life Insurance

Term life insurance generally provides coverage for a specified period of time.

It can be useful when the need for protection is expected to last for a particular number of years—for example, while children are growing up, while a mortgage remains outstanding, or during the years when a family depends heavily on a person's income.

Term insurance generally begins with lower premiums than permanent insurance and may allow someone to purchase a larger death benefit for a given premium during the initial term.

The policy does not generally build cash value, and coverage may end or become more expensive when the term expires, depending on the policy.

Permanent Life Insurance

Permanent life insurance is designed to provide longer-term protection as long as the requirements of the policy are met.

Unlike most term insurance, permanent policies may accumulate cash value over time. Depending on the type of policy, that cash value may offer additional options while the insured is living.

Permanent coverage generally costs more than term coverage, particularly in the early years, so it is important to understand the differences before choosing a policy.

The right choice depends on your objectives, budget, age, health, and how long you expect to need the coverage.

Choosing Between Term and Permanent Coverage

Term and permanent life insurance serve different needs.

Someone primarily concerned with replacing income during working years or protecting a family while children are young may have different priorities from someone seeking coverage intended to remain in force for life.

When comparing the two, consider:

• how long you need protection
• the amount of coverage needed
• the premium you can comfortably maintain
• whether cash-value features are important to you
• your long-term financial objectives
• your age and health when applying

We can help explain the differences so you can make a more informed decision.

Factors That Can Affect Life Insurance Cost

Life insurance pricing is based on a number of factors that can vary by applicant and insurance company.

The Indiana Department of Insurance identifies factors such as age, health and medical history, tobacco use and other health habits, driving history, certain activities or hobbies, and other underwriting considerations as factors that can affect premiums.

Because companies may evaluate applicants differently, comparing available options can be helpful.

Coverage, eligibility, underwriting requirements, and premiums depend on the individual applicant and the insurance company.

When Should You Review Your Life Insurance?

Life insurance needs can change substantially over time.

Consider reviewing your coverage after major life events such as:

• marriage
• birth or adoption of a child
• buying a home
• taking on significant new debt
• changes in household income
• divorce
• children becoming financially independent
• retirement
• death of a spouse or beneficiary
• significant changes in your financial situation

The Indiana Department of Insurance recommends reviewing life insurance periodically and updating it when major life circumstances change.

Keep Your Beneficiaries Current

Your beneficiary designation determines who is intended to receive the policy's death benefit.

Major changes in your family or personal circumstances may make it appropriate to review those designations. Keeping beneficiary information current can help ensure the policy continues to reflect your intentions.

If you are uncertain about beneficiary arrangements involving trusts, estates, minors, taxes, or other complex situations, appropriate legal or tax advice may also be necessary.

Life Insurance Is About Financial Protection

It can be difficult to think about what would happen to your family after your death, but planning ahead can help reduce some of the financial uncertainty they could otherwise face.

The loss of a loved one should not also create an unexpected loss of essential financial support.

Our role is to help you understand the available life insurance choices and consider how much protection may be appropriate for the people who depend on you.

Talk With a Local Independent Agent

If you are considering life insurance in Terre Haute or the surrounding Wabash Valley, Crapo Insurance Agency can help you review your needs and understand available coverage options.