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About BFF Enterprises
BFF Enterprises was founded on the principle of family protection. Providing the precious gift of life insurance to loved ones is one of the most important financial decisions anyone can make. And we're here to make sure it gets done the right way.
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Free Life Insurance Guide - Everything You Need To Know About Life Insurance
Purchasing Life Insurance is one of the most important financial decisions we will ever make. It is the gift we give our loved ones even after we pass, to make sure they are taken care of.
Essentially, what Life Insurance can do is provide family and loved ones with 3 very important things:
1. Enough finances to cover the costs of the memorial service, whether it be a funeral or cremation service.
2. Provide a detailed plan of final wishes of the deceased to avoid confusion.
3. Assist with arrangements and negotiations (restricted to certain Life Insurance Providers)
Let's talk about each individually.
1. Why you need life insurance?
Most of us need life insurance at some point in our lives. But don't buy a policy just because you heard it was a good idea. Life insurance is designed to provide your family with financial security in case you, your spouse, or a parent passes away.
Life insurance can help pay off your mortgage, help with college expenses, help fund your retirement, and help with estate planning. If you have loved ones who depend on your income for support, you should strongly consider getting life insurance.
Also, the younger you are, the less expensive life insurance will be, so even if you don't have an immediate need you may want to consider purchasing a "starter" policy for the future.
2. How much coverage should I buy?
You can use any number of planning tools to get an idea of the amount of coverage you'll need for your policy. The easiest way is to simply take your annual salary and multiply by eight.
Another way: Multiply your annual income by the number of years left before your retirement benefits kick in.
You can also add up the expenses you think your family will incur after your death, such as a mortgage, school bills, and car costs. Then take your ongoing yearly expenses and divide them by 0.07.
That translates to you needing a lump sum of money earning approximately 7% each year to pay those ongoing expenses. Add to that amount the money you'll need to cover one-time expenses at death, and you'll have a rough estimate of the amount of life insurance you need.
3. Finding the right life insurance policy.
Once you figure out how much coverage you'll need, you’ll need to find the best insurance policy. Your main options are term life, which may better fit your current budget, or whole life, for permanent coverage that also grows cash value.
Consider term life for:
✅ Death benefit protection without cash value accumulation.
✅ Life insurance on a limited budget.
✅ Ability to convert to long-term life insurance.
Consider whole life for:
✅ Long-term death benefit protection.
✅ Stable cash value accumulation.
✅ Potential to receive dividends.
4. Difference Between Term and Whole Life Insurance
Term Life Insurance:
✅ Coverage for temporary needs with options that allow you to prepare for the future.
✅ Length of coverage is a set period of time, usually 10 to 20 years.
✅ Pay premiums for as long as your coverage lasts. With many policies, premiums are locked in for a set period, and may be less expensive than whole life premiums during that period.
✅ Has no cash-value accumulation
✅ Death benefits can be transferred to beneficiaries tax free.
Whole Life Insurance:
✅ Guaranteed lifetime protection and access to cash value that's guaranteed to grow.
✅ Premiums are guaranteed never to increase, and there are options for how often and how long you pay—monthly, quarterly, or yearly.
✅ Guaranteed cash value growth that can be accessed when needed and may increase through dividends, when paid. These benefits accrue tax deferred, allowing you to maximize your savings.
How Much Does Life Insurance Cost?
The costs for Life Insurance vary depending on a few factors:
1. Age
2. Gender
3. Smoker or Non-Smoker
4. Health and Medications
5. Amount of Insurance
All of these factors will play a role in determining the cost for your Life Insurance.
However, the average we typically see is between $35-$150 per month, depending on how much life insurance you purchase.
With that said, you could also start with the bare minimum to at least lock in rates at your current age and health.
For example, let's say you're currently 55 years old. You know you need Life Insurance but you can't afford $75 per month for it right now but you will in the future.
You could get as much insurance as possible for $15 per month (required minimum) and then increase the amount of insurance later on when you're able to afford it.
Let's say you increase the amount 2 years later when you're 57 and you've also started taking medications for blood pressure or cholesterol.
Because you already locked in your rates and were approved at 55, the additional 2 years of age and the added medications will have ZERO impact on your rates!
Obviously you will pay more for the added amount of insurance. However, the rate for the increased amount of insurance is still based on when you qualified at 55, not 57 and the medications!
This is a great way to begin setting up your Life Insurance plan without breaking the bank if you're on a budget.
Either way though, at the end of the day, it's tough to put a price on the peace of mind knowing that your family is taken care of should anything happen.
Click the button below to request your free Custom Life Insurance Plan to start protecting your loved ones!
