Types of Life Insurance in Ohio

Types of Life Insurance in Ohio

For some people, the importance of getting life insurance is not very clear. The lack of information in the matter is one of the main factors.

This article is meant to give information about the different types of life insurance in Ohio, and also, the factors you must take into consideration before getting one.

There are many types of life insurance in Ohio. All of them offer different things, and after asking you the necessary questions, the insurance company will let you know what kind of life insurance works better for you. However, that decision is solely up to you.

Life insurance companies have a great effect on Ohio’s economy. An interesting fact is that in 2017, insurance companies made about $33.1 billion out of Premiums.

Factors to consider before getting life insurance

The following list shows the factors that you must take into account before completing the policy procedures. Think carefully about each one. The company will very likely ask you about them and much more, so it is important to completely transparent.

Honesty is highly valued by insurance companies, and those who are willing to share details of their lives with them often get better deals. 

These factors include:

  • Marital Status
  • The existence or expectancy of a child
  • Ownership of a house
  • Retirement age
  • Marital Status

Marital status is of great importance. For example, your spouse may rely on you economically, and your death might affect them greatly.

To avoid putting them into a financial situation hard to deal with, getting life insurance is a great option. To this year, in Ohio, there are about 4.35 million adults who are currently married.

The situation changes drastically if there is no one depending on you economically. Life insurance should not be needed at this moment, but as time passes by, you should start thinking about getting one depending on the long-term plans you have. 

  • Children

Having children has a great impact on your life. Your main responsibility as a parent is to provide them and to make sure they are growing up healthy.

Having a child does not necessarily mean that you are married; there are single fathers and mothers out there. However, if you are planning on having children or already have one, getting life insurance may be a good idea.

As they rely on you economically, if something should happen to you, there must be a way for them to keep dealing with their expenses until they become able to survive on their own.

If you are currently expecting a child, then this is a great moment to start getting life insurance in Ohio.

In this State, the minimum living wage is $8.55 (the total rate you should be making per hour at work) for families in general and with any number of children. 

During these years, a substantial policy is the best option to aim for. There is a lot that this kind of policy can cover, including the on-going expenses that come with the arrival of a child, which include education, food, clothing, etc.

Household expenses are also part of this list, and they all should be considered so when you pass away, your family is still able to live under the standard of living.

  • Your house

The first days after buying a new house can be a little hard. You’re getting used to a new neighbourhood, and are trying to get in touch with the community.

This is not the only thing you have to deal with; your mailbox will probably be filled with letters requesting you to make solicitude for mortgage life insurance.

The documents these mails include are not a life insurance policy. To get one you should get in touch with a company.

By providing your personal information, the only thing that you can expect is phone calls from several companies asking you to come to the place for more information regarding mortgage life insurance.

While there is a high chance of getting a nice deal through this, it is better if you do research first. Later in the post, we will explain what a mortgage life insurance is.

  • Retirement

Let’s suppose you requested term life insurance during your 30s, for a timeframe of 30 years. Your policy will be probably run out when you finally reach retirement age. Getting life insurance when you are older will cost you a great sum, due to the risks that come with old age.

A higher chance of mortality, the probability of having on-going conditions that could put you at risk, and more, are factors that insurance companies considerate before they tell you if you are a ‘risky customer’ or not.

The monthly fee you’ll be paying will be extremely high, and that’s why it is recommended to get life insurance when you’re young, healthy and are not in need of one. 

Remember, retirement is possible at any time once you reach 62, but the benefits you get by it will be reduced. 

Retirement has to be planned with ease. If everything has gone well in your life, life insurance might not be needed when you pass away.

The needs of a surviving spouse will very likely be covered with the use of your retirement accounts, and by this time, mortgages are probably a thing of the past. There is no need to worry about children as well (if you had them) because, at this time, they have lives of their own and can survive by themselves.

Bottom Line

Now that the factors that you should consider before getting life insurance in Ohio are clear, it is time to see what kind of insurance the companies are offering in this state.

Keep in mind that the previous factors are just one of the many that companies take into consideration, and you should be aware of the risk factors that affect buying life insurance in Ohio.

The main types of life insurance in Ohio

There are certain types that companies usually offer to customers. After analyzing every risk factor and conditions surrounding you, the company will tell you what are the best options for you.

The following list will let you know what kind of deal you are getting, but remember that every contract is different depending on the company you decide to work with.

The types we are going to explain include: 

  • Basic life insurance
  • Universal life insurance
  • Whole life insurance
  • Term life insurance 
  • Simplified issue life insurance
  • Guaranteed issue life insurance
  • Final expense insurance

Basic life insurance

The process of getting life insurance in Ohio is automatic when you are an extended employee of the State. This means that either you work full-time or part-time, you will be eligible for basic life insurance once you have worked continuously for more than 12 months.

For some, the benefits given by this life insurance plan is not enough. It is intended to give about one year worth of salary once the insured dies.  While this should be enough to take care of final expenses, sometimes, families have a lot more to cover once the main provider of the household passes away. 

The company that manages basic life insurance in Ohio is Securian Financial. When you get insured with this kind of policy, beneficiaries will be able to receive certain benefits, such as accidental death provision, and the insured can apply for accelerated death benefits. 

Universal life insurance

Universal life insurance in Ohio offers both the policyholder and the beneficiary great flexibility when it comes to death benefits.

This kind of life insurance is meant to last throughout your lifetime. When you finish filling the policy, a savings account will be opened, and through it, you can get cash value.

The premiums you’ll be paying are divided into two parts:  one goes for the insurance, and the other for the savings account.

Through the savings account, you’ll be able to retire a certain amount of cash.

You are able to choose the total amount you will be paying for the premiums, too. The funds on the savings account will grow depending on the annual interest rate.

There are many different types of life insurance, and there is the possibility that you come across a company that offers you variable universal life insurance.

Variable universal life insurance is meant for both insurance and investing, by starting a mutual fund account. Those funds will be managed by professionals, hence the cash value will be invested, and it will affect the total sum depending on the market’s current situation.

The cash value can either decrease or increase, but remember that this money is meant to help your family. 

Whole life insurance

It lasts for your whole life, meaning that it won’t expire. The policyholder will be informed of a minimum rate of return, from which the company will determine how much cash value you will be getting. As long as you pay for the premiums, everything will be okay.

Just as in universal life insurance, a certain amount will go to the insurance money and a different amount will go to the cash value.

You can’t get cash from it, though. Those who get whole life insurance have the perk that their cash value will be increasing through the years.

Simplified issue life insurance

Most life insurance plans require you to submit yourself for a medical exam during the evaluation of risk factors, which will determine the premiums rate. If you decide to go for a simplified issue life insurance, the medical exam part can be put aside. 

However, although it is ‘simplified’, you will be asked more questions than usual about your current health status. If you are sure that you are in good shape, then it is a good idea to go for a simplified issue life insurance.

Guaranteed issue life insurance

This makes things even simpler than the previous type. When getting a guaranteed issue life insurance, no questions about your current health status will be asked.

Hence, you will still be insured, but the premiums must be paid in time. Only basic personal information will be needed to get this life insurance in Ohio.

Guaranteed issue life insurance can work very well with old people since they are ‘risky customers’ for life insurance companies. However, keep in mind that if you are young, there are better deals for you out there.

Final expense insurance

Final expenses are a bit hard to manage once the main provider of the house passes away. One way to guarantee that your family will be able to pay for your funerary/crematory expenses is to get final expense insurance.

Anything related to your death will be totally covered by this type of policy. Companies usually have an age range from which people can request this kind of life insurance.

Cash value also applies to final expense insurance, and just as in previous types, it will increase over the years. It usually covers small amounts, but those funds should be enough to cover your funerary expenses. You will be paying more monthly fees and will be getting fewer benefits, though.

Conclusion

As you have read, there are several types of life insurance and they all cover different needs. You must think thoroughly about which one you are aiming for, but the company will also try to give you the best offer depending on the information you have shared with them.

Before starting to make a contract, already having the results of a medical exam will help to make things faster. 

Our advice is to be totally honest; therefore, you will get a good deal. Getting life insurance in Ohio is not a difficult task, but not everyone can afford one. If that is your case, there are many companies that offer deals that adjust to your budget.

All you have to do is research, and in no time you will be filing your life insurance policy. 

Life Insurance Ohio

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