Illinois Life Insurance
Illinois life insurance is not there to protect you as the policy holder. It is there to protect the your family when you are no longer around to do so. On the surface, it seems a little odd to take out an insurance policy in your name when you won’t ever benefit from it. Of course, that peace of mind of knowing that your family’s financial needs will be met is a main reason that many people seek out an Illinois life insurance policy in the first place. Read on to get some good facts that will help you evaluate the numerous life insurance plans available to residents of Illinois.
Illinois Life Insurance Coverage
Life insurance provides financial security upon the death of the policy holder to cover expenses such as:
- Mortgage payments
- Car payments
- Funeral expenses
- College funds for children
- Child care
- Estate taxes
- Lawyer fees
- Outstanding debt
- Lost income
- Money to support the family until they can provide for themselves
Not only can the death of a family member be devastating emotionally and mentally, if that person was the main source of income for the family, it can be financially devastating. Bill collectors don’t stop calling just because your family is grieving.
That is an added stressor at one of the most difficult times in the life of a family. They say money’s not important. Yet it impacts everything that is.
Types Of Illinois Life Insurance
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Illinois Term Life Insurance – Term life insurance is available for 10, 20 or 30 years and is ideal for the new family just starting out. Your insurance needs change over time and this is the place to start. Many times you can get a conversion policy to change this over to a whole life insurance policy later. Check with your agent to see if that is an option.
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Illinois Whole Life Insurance – This is part life insurance, part savings account. It has both a pay out value and a cash value that gives you a cash amount available on surrendering of the policy. You can also take out loans against the account if the need arises.
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Illinois Universal Life Insurance – Very much like the whole life insurance plan only more flexile. It allows you to change when your payments are made.
Illinois Life Insurance FAQ
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How do I find a reputable life insurance company? Contact the Illinois Department of Insurance or visit the A.M. Best website. Look up the company that you are interested in doing business with.
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What about returning part of my premium when a new policy is purchased? This is known as “rebating” and is illegal in the state of Illinois. The insurance company may not return any part of your premium as an incentive to do further business with them.
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What if the life insurance company that I am doing business with goes under? In the state of Illinois life insurance companies are members of the Illinois Life and Health Insurance Guaranty Association. This gives you some guarantee under law of $300,000 for a single policy upon death and $100,000 for net cash surrender.
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Can I designate whoever I want as my beneficiary? Only to a point. Your beneficiary has to have some financial interest in your death such as your next of kin. That sounds kind of cold, but the purpose of life insurance is to prevent excessive financial hardship on your family.
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Does my spouse also need life insurance? If your spouse contributes a portion to the family’s income, then the answer is yes. You will want to be able to replace that income in the event of his or her death where there isn’t that financial stress put on the family.
Even if your spouse doesn’t work, having a life insurance policy can help cover services that your spouse provides such as child care or home maintenance. These are areas that you may suddenly find yourself having to find coverage for if your spouse is no longer able to perform these activities. Remember, everyone contributes to the smooth functioning of a family. We don’t necessarily consider what the price tag would be if it had to pay for those services until we have to.
Illinois Life Insurance Companies
- Illinois Mutual Life
- American Family Life
- Mutual of Omaha
- Nationwide
- New York Life
- AIG
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