Life Insurance in Oswego, Naperville, Plainfield, and St. Charles

A life insurance policy may help provide financial support with a lump sum payment upon the insured person’s death. It may be used as part of an investment plan or as a potential source of income during the policyholder’s lifetime.

Contact RKM Insurance Services to learn more about the types of life insurance that may be most appropriate for your situation.

Types of Life Insurance

There are two main types of life insurance with many subcategories, including the following:

• Term life insurance provides coverage during a set time (typically 5, 10, 15 or 20 years). When the term ends, the coverage terminates automatically. If the insured person dies while the policy is in force, beneficiaries can file a claim to receive the death benefit.
• Permanent life insurance provides coverage for the insured person’s entire lifetime. In addition to a death benefit, the policy owner’s account accumulates cash value over time. Depending on the terms of the policy, the policy owner may be able to borrow against the policy’s cash value. If the life insurance is no longer needed in the future, the policy owner may be able to surrender the policy for its cash value minus fees.

How Many Life Insurance Policies Can I Have?

While there is no limit to the number of life insurance policies one may own, insurers may restrict your ability to purchase more life insurance, depending on their policies.

If you want to purchase additional life insurance policies in the future, talk with your agent about adding a policy rider when you purchase life insurance. Depending on the type of policy you choose, you can add flexibility to your coverage by purchasing a rider, including the following:

• Guaranteed insurability riders provide the option to purchase more life insurance in the future without having to go through a medical exam or provide evidence of insurability.
• Term conversion riders allow the policy owner to convert a certain portion of a term life insurance coverage to permanent life insurance every few years without undergoing a medical exam.

Your agent can discuss options to help ensure your access to more life insurance coverage in the future.

How Much Life Insurance Do I Need?

There’s no standard answer to how much life insurance a person should purchase. The policy’s death benefit is customizable according to your needs, and life insurance premiums tend to rise with the death benefit amount.

When deciding how much life insurance may be appropriate for your current situation, consider the following:

• Whether you have outstanding joint debts that your cosigner would be 100% responsible for paying upon your death
• Whether you provide crucial financial support to anyone, such as children, parents or a partner that will experience hardship if you die while they require your help
• Whether your need for life insurance is temporary, such as when you have a jointly held mortgage or when you have young children living at home
• Whether anyone depends on you for services they would have to hire someone to handle upon your death, such as childcare and running a household

Where to Get Life Insurance

Contact RKM Insurance Services in St. Charles, Illinois, to get personalized quotes and learn more about your life insurance options.