Life Insurance
Life can be unpredictable. Thankfully, life insurance can act as a safeguard for your family’s financial future should an unforeseen event occur.
Choosing the right life insurance plan can be a complex task, but we’re here to make it easy. Founded in 1994, HCP National Insurance Services, Inc. (HCP) is one of the largest independent brokerages in the country, led and owned by a certified minority woman (WBENC & MBE). We help clients nationwide define and minimize their risks by implementing the right insurance products at affordable prices.
Ready to give yourself with peace of mind, and protect your family’s financial future with life insurance?
HCP National can provide you with an instant quote for life insurance. No medical exams or blood tests required. Coverage starts from $7/month.
What is Life Insurance?
Life insurance is a contract between an individual and an insurance company, where the individual pays regular premiums in return for a lump sum payment, known as a death benefit, to the designated beneficiaries upon the insured’s death.
Essentially, life insurance is a way to replace the income of the person who passes away. It ensures that the family members left behind can continue to pay for their living expenses. It’s a critical piece of estate planning, providing financial security and peace of mind.
How Does Life Insurance Work?
Life insurance is made up of four different components:
- The Insured: This is the person whose life is covered by the life insurance policy. Usually, this is the person who takes out the policy and pays the premium; though it's also possible for the policyholder to be someone other than the insured.
- The Beneficiary: This is the person(s), institution(s), or entity(ies) that receive the death benefit (or lump sum payment) from the life insurance company when the insured person passes away. The insured can name one person (or many) as their beneficiaries.
- The Premium: This is the money paid (usually monthly or annually) to keep the life insurance policy active. Paying the premium ensures that the insurance company will pay out the death benefit to the beneficiaries. If premiums aren't paid, then the policy will not be active.
- The Death Benefit: This is the lump sum of money that is paid out to the beneficiaries if the insured person passes away. Typically, death benefits aren't subject to income tax.
How to Purchase Life Insurance Coverage
You can get a quote for life insurance and choose the policy that’s right for you 100% online, within minutes.
With HCP National & Ethos, you may:
- Get coverage up to $2M without taking a medical exam. Simply answer a few questions about your goals and health.
- Get free wills & estate plans. (Eligibility varies.)
- Get approved near-instantly, if you are a qualified applicant.
- Review flexible options to suit your life insurance budget and requirements.
- Get a 30-day money-back guarantee.
Ready to get started? HCP National can help you find comprehensive and affordable coverage to suit your needs.
What is the Difference Between Term and Permanent Life Insurance?
Term and Permanent life insurance are two distinct types of life insurance policies. Each has its unique features and benefits.
Term Life Insurance
Just as its name suggests, term life insurance provides coverage for a specific term or amount of time. You can choose the length of your term. Usually, term policies last for 10, 20, or 30 years.
If the policyholder passes away during this term, the death benefit is paid out to the beneficiaries.
However, if the term ends while the policyholder is still alive, the coverage ceases, and no death benefit is paid out. Usually, have the option to renew.
This type of insurance is very straightforward, and often less expensive than permanent life insurance.
Permanent Life Insurance
On the other hand, permanent life insurance provides life-long coverage, as long as the premiums are paid. This guarantees the eventual death benefit payout to the beneficiaries when the insured person dies.
Permanent life insurance premiums can cost 5 to 10 times more than term life insurance.
Most permanent life insurance policies include a cash value component that grows over time, as premiums are paid, with a guaranteed minimum rate of return.
Usually, the policyholder can borrow against this cash value, or even withdraw it during their lifetime. Of course, they can also leave the cash value in the policy, to maintain or increase the death benefit over time.
Get a Quote for Life Insurance Now
Founded in 1994, HCP National Insurance Services, Inc. (HCP) is one of the largest independent brokerages in the country, led and owned by a certified minority woman (WBENC & MBE).
Buying life insurance is an important decision. We’re here to help you provide financial security to your family with life insurance.
Have questions? Contact us to discuss your options.
Ready to get your life insurance quote and policy online, instantly? No medical exams or blood tests are required. Premiums start from $7/month.
Life Insurance: FAQs
Life insurance may not cost as much as you think! Since life insurance premiums vary, based on the insured’s desired coverage amount and term length, as well as their age, health status, and tobacco use, the only way to find out is to request an instant quote. The sooner you purchase a life insurance policy, the sooner you can lock in the lowest possible premium.
Even if you have an employer-sponsored life insurance policy, you may need more coverage. Some say it’s wise to have a life insurance policy worth ten times your annual salary. Consider purchasing an individual term life insurance policy to supplement your employer-sponsored life insurance policy.
An easy way to decide how much life insurance you need is to multiply your annual salary by 10. You could also add up all of your long-term financial obligations and then subtract all of your assets; then take out a policy for the difference.
Term life insurance provides coverage for a specific period, or term, usually between 10 to 30 years. If the insured person passes away during the term, the death benefit is paid out to the beneficiaries. However, if the insured person outlives the term, no benefits are paid.
Permanent or whole life insurance, on the other hand, provides coverage for the insured’s entire lifetime. It also includes a cash-value component, which grows over time and can be borrowed against or used to pay premiums. While whole life insurance premiums are generally much higher than term life premiums, as long as premiums are paid, the policy does not expire, providing a guaranteed death benefit to the beneficiaries.
Life insurance can help provide your family or loved ones with financial security after you pass away, as long as the policy is still active. When you pass away, your beneficiaries will receive a death benefit from the life insurance company. Typically, the death benefit is used for funeral arrangements, mortgage payments, debts, tuition, and other everyday expenses. However, it is up to the beneficiaries to decide how they will use the payout. The death benefit is usually made as a lump-sum payment and is exempt from taxation.
NOTE: THE ABOVE IS A GENERAL DISCUSSION ABOUT HOW LIFE INSURANCE MAY WORK. YOUR INSURANCE POLICY, AND ALL ADDENDA, ARE THE ONLY AUTHORITY OF HOW YOUR COVERAGE WORKS. DO NOT RELY ON THIS ARTICLE AS AN EXPLANATION OF YOUR COVERAGE. HAVE YOUR ATTORNEY REVIEW YOUR ENTIRE POLICY WITH YOU TO DETERMINE WHAT IS AND ISN’T COVERED
