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What Is Term Life Insurance?

One of the decisions you’ll have to make when shopping for life insurance is choosing between term life insurance and permanent life insurance. To make an informed decision, it’s important to understand both insurance types. This blog focuses on term life insurance with insights from the experts at Senn Insurance Agency serving O’Fallon, MO.

What Is Term Life Insurance?

Term life insurance provides coverage for a specific term or period. Young individuals often prefer term life insurance to ensure that their loved ones are protected financially if they were to pass away. It can help cover mortgage payments or other day-to-day expenses incurred after the insured’s death.

How Does Term Life Insurance Work?

A typical term life insurance policy mandates a medical exam before activation. The policy pays out a set amount if the insured dies during the term. Some policies decrease the payout each year, while others maintain a consistent payout throughout the term. Some term life insurance types can be extended without undergoing an additional medical check.

Who Needs Term Life Insurance?

Term life insurance is mostly suited for individuals who have dependents, like young children, and want to ensure their financial stability in case of their death. At Senn Insurance Agency serving O’Fallon, MO, we are always ready to help you decide if term life insurance fits your needs best. Reach out to us today.

How do I know which kind of life insurance is best, depending on my age?

No matter how old someone is, they could benefit from having a life insurance policy. There are different kinds of life insurance, though, and you may get better benefits from one or another based on your age. If you are looking for life insurance in O’Fallon, MO, Senn Insurance Agency can help you look at all your options.

The Younger, the Better

The younger you are, the smaller your premiums will be. The premium is the monthly payment to maintain your policy.

Term life insurance is popular among young people because of the lower premium prices. If you choose a term life policy, you will decide how long you want your policy to last and how much insurance you want.

Term life insurance usually lasts between 10 and 30 years and is the less expensive option. The only benefit is that there is a death benefit paid out if the person who holds the policy dies. Some people add a term life policy to a whole life policy during certain financial situations, such as buying a new home.

Whole Life Insurance

Whole life insurance lasts forever or as long as you keep paying your premium. Unlike term insurance, there is a cash component where the policyholder can borrow money against the policy.

Many people choose whole life insurance after the age of 30 because it provides long-term financial security. For instance, older people can carry a policy that will help provide for the children, pay off the mortgage, and pay burial expenses.

Your circumstances are unique, and what might be best for you wouldn’t work for someone else. If you live in O’Fallon, MO, Senn Insurance Agency can help you assess your current situation to make an informed decision. Call today.

Four common misconceptions about life insurance

At Senn Insurance Agency, we’re here to assist consumers in O’Fallon, MO with meeting their life insurance needs. 

Unfortunately, consumers sometimes have misconceptions about life insurance. Here are four of the most common misconceptions out there about life insurance. 

Life insurance is not affordable for most consumers.

It would be best if you didn’t make any assumptions about how expensive life insurance is. It would be best to get quotes on life insurance policies to be accurately informed about how much it will cost you and your family to get life insurance coverage. 

The life insurance coverage that you get through your employer is adequate.

Many employers offer life insurance coverage to employees. However, it’s important to know that the coverage offered by employers is not always adequate for a family’s needs.

It might be essential for you to invest in added coverage that goes beyond what your employer offers if you want to ensure your family is financially secure. 

You can’t get life insurance if you have a chronic health condition.

While it might be harder to get life insurance if you have health issues, it’s not impossible. If you’re worried about health issues, shop around, and you should be able to find a no-medical exam policy that meets your needs. 

You don’t have to worry about missing one life insurance premium payment. 

It’s essential for you to make every life insurance premium payment on time. If you miss a payment, your policy could lapse, and your family could be without coverage. 

If you need life insurance, you can get a quote on a policy from Senn Insurance Agency. We’re here to help consumers in O’Fallon, MO when it comes to meeting their life insurance coverage needs. 

Who should get a life insurance plan in Missouri?

Everyone in the O’Fallon, MO area should take their personal insurance needs seriously. One type of coverage that many overlook is life insurance. While someone may not consider their life insurance needs, it is a very important form of coverage everyone should consider getting. There are various scenarios when someone wants a full life insurance plan.

When Trying to Provide Financial Coverage

A situation when someone will want to have a life insurance plan will come when they are trying to provide financial coverage for those that they care about. One of the main benefits of having a life insurance policy is that you can build and customize it to provide your dependents with financial support if you pass away in an accident. Having life insurance will allow you to ensure your dependents have the financial assistance they need to maintain their current lifestyle. 

Alternative Investment

A whole life insurance is a good tool for those who want to save for the future and receive life insurance support. With a whole life insurance policy, some of the payments you make each month will go into an account that grows in the future with interest and can be liquidated. At the same time, you will receive life insurance support. 

It is very important for those in the O’Fallon, MO area always to have life insurance. If you are comparing policies for this type of coverage, it can be helpful to start the search by calling us at Senn Insurance Agency. When you call our Senn Insurance Agency team, you can receive beneficial guidance that will inform you about your options and help you select an ideal policy. 

Who Should Be My Beneficiary on My Life Insurance Policy?

Choosing a beneficiary is an essential step in purchasing a life insurance policy. Here at Senn Insurance Agency, serving O’Fallon, MO, and the surrounding areas, we intend to help walk you through these types of important insurance decisions. Keep reading to learn more. 

Understanding Beneficiaries 

When you purchase a life insurance policy, one of the most important decisions you’ll need to make is who to name as the beneficiary. The beneficiary is the person to which life insurance benefits will be paid in the event of your passing. You should carefully consider who you are naming in this role on the policy. 

Common Beneficiaries 

You have the right to name anyone you would like as a beneficiary. However, some common beneficiaries are often chosen. For instance, married people often choose their spouse to be their beneficiary. Most married people purchase a life insurance policy to provide financial assistance to their spouses should they die. Another common person to name would be a child or children. 

If you do not have a spouse or children, you will want to consider another option. 

Things to Consider When Choosing a Beneficiary 

If you are not choosing a spouse or a child, you will want to consider who would use the insurance benefits properly carefully. The beneficiary on a life insurance policy is often responsible for paying for your final expenses if you have not pre-paid for those already. If there are other things that you would wish for the money to be used for, you should make sure you choose someone who is trustworthy and will carry out your wishes as you have requested. 

If you want to learn more about life insurance, please get in touch with us at Senn Insurance Agency, serving O’Fallon, MO, and the surrounding areas. 


The differences between term and whole life insurance

Whole life insurance provides lifelong protection and accumulates cash value over time. It generally provides a guaranteed premium, death benefit, and cash value component that collects tax-deferred with potential dividends. On the other hand, term life insurance is often the most affordable way for individuals to get high levels of coverage for a specific period (typically 10, 20, or 30 years). Since we get asked a lot, here are a few more differences from the Senn Insurance Agency.

The primary difference between whole life insurance and term life insurance lies in their duration. At the same time, you can have a whole life policy in force your entire lifetime—so long as you continue to make payments—term policies are much shorter in duration. The primary purpose of term life insurance is financial protection. Therefore, if you die during your policy term, the insurance company pays a death benefit to your beneficiaries. After the term expires, coverage ends, and there is no death benefit payable.

Whole life policies are more expensive than term life policies because they offer more features, such as investment options for cash value accumulation and guaranteed renewability for life—meaning you can’t be denied a renewal even if your health has changed. 

On the other hand, term life insurance can be a great choice if you only need coverage for a specific period. The premiums are much lower compared to whole life because it does not have the cash value component or guaranteed renewability feature. Moreover, term life insurance is often seen as a way for individuals who don’t want or can’t afford the higher premium costs associated with whole life policies to get coverage that will provide financial security for their families.

For more information, give us at Senn Insurance Agency a call today. We serve the O’Fallon, MO area.

Why life insurance is important for single people

Residents in O’Fallon, MO and the surrounding area can rely on the team at Senn Insurance Agency for all of their insurance needs. We can help you determine if life insurance is something that can help your financial future. Contact our office today to learn more about life insurance’s many benefits. 

Single people can benefit from life insurance.

When people think of life insurance, they often think of it as a vehicle for young families to protect their children should a catastrophe occur. While this is an essential function that life insurance can serve, it is not the only one. Single people who don’t want to leave their loved ones with any financial burdens at the time of their deaths can also benefit from carrying a life insurance policy.

Even when the estate has plenty of resources to cover burial and end-of-life expenses, those funds aren’t typically accessible immediately following a death. With probate and estate settlement issues, it can take some time for funds to be disbursed according to a person’s will. This means that, in many cases, it comes down to relatives or loved ones to cover the cost of a funeral and other immediate expenses that occur at the time of a person’s death. 

Many single people opt to carry a term life policy to avoid leaving loved ones with a financial burden. This type of life insurance policy is an effective way to cover end-of-life expenses. 

Call or stop by today!

Senn Insurance Agency is here to serve the insurance needs of residents in O’Fallon, MO, and the surrounding area. If you have questions about life insurance, give us a call or come by our office today. 

How To Choose a Life Insurance Policy Beneficiary in Missouri

When you purchase a life insurance policy, you must name a beneficiary. The policyholder’s beneficiary will receive the death benefit payment if you die while the insurance is in force. Choosing a beneficiary may seem simple, but it’s essential to take some time to weigh your options.

Who Can Be a Beneficiary?

You can name just about anyone as your life insurance beneficiary. This can include your spouse, child, parents, siblings, or other relatives. You can also name a non-family member, such as a close friend or business partner. You must update your beneficiaries to reflect your marital status if divorced.

What Happens if I Don’t Name a Beneficiary?

The death benefit is paid to your estate if you do not designate a beneficiary. This can complicate things for your loved ones, as they must go through probate to receive the money. Probate is a lengthy and expensive legal process, so it’s best to avoid it if possible.

Your Senn Insurance Agency agent can explain how to name beneficiaries and the best way to structure your life insurance policy.

What Are The Different Beneficiary Types?

Three common types of beneficiaries are primary, contingent, and tertiary. The primary beneficiary is the first person (or people) who will receive the death benefit. The money will go to the contingent beneficiary if they die before you do.

The contingent beneficiary is the second person (or people) in line to receive the death benefit. The money will go to the tertiary beneficiary if they die before you do. The tertiary beneficiary is the third person (or people) in line to receive the death benefit.

Contact Senn Insurance Agency to help you choose the best life insurance policy for your needs in O’Fallon, MO. Our agents can help you understand the different beneficiaries and how to name them on your policy. We’re here to help you every step of the way.

What are the different types of life insurance?

Do you have questions about life insurance? The team at Senn Insurance Agency can help you explore your insurance options and determine which type of policy may be right for you and your family. We are proud to serve the insurance needs of the greater O’Fallon, MO community!

Different types of life insurance

There are four main types of life insurance that we would like to review today. If you would like to learn more, a local agent can answer all of your questions and help you find the right policy for your needs.

  1. Term Life – This is an excellent option for single people or those on a budget. It is essential to consider that the policies are for a defined period and expire after that term.
  2. Whole Life – One of the most popular types of permanent life insurance, a whole life policy has many benefits. You can set up such policies so that your premium will not vary throughout the policy’s life. It also builds a cash value, and your death benefit cannot change.  
  3. Variable Life – If you would like to utilize your life policy as a financial tool, several variable policies are tied to investment accounts. These policies carry a more significant amount of risk than a whole life policy.
  4. Universal Life – This is a less expensive policy type as no cash value builds over time. And your death benefit will not change.

Give us a call today!

Senn Insurance Agency is proud to work with the O’Fallon, MO area residents. If you have questions about life or any other type of insurance, give us a call or stop by our office today!

Why Young Adults Should Invest in a Life Insurance Policy

Most people don’t give much thought to purchasing a life insurance policy until they are older. However, young adults in O’Fallon, MO should consider investing in a policy while they are still young. This is true regardless of their individual situation. Here are several reasons why young adults (in their 20s) should get life insurance now from an insurer like Senn Insurance Agency.

Life Insurance Is Normally More Affordable

Individuals tend to be quoted the best life insurance rates the younger and healthier they are. In the event that you wind up developing a severe or chronic illness or condition before you’re able to secure a life insurance policy, the chances are good that you will pay more for the policy. Signing up for a policy while you’re young and ultimately in good health will allow you to lock in a lower premium.

Life Insurance Helps to Replace Lost Income

Whether you live with a spouse, share an apartment with a friend, or have children, there is probably someone who relies on you financially in one way or another. If something were to happen to you, they would be left without your income to pay the necessary bills and other regular costs. A life insurance policy can cover various expenses until they are able to adjust to their new lifestyle.

Life Insurance Protects Your Family Members

Whether you have children now or plan to have them in the foreseeable future, life insurance can aid in related expenses like medical care, college tuition, the like. It can even help your spouse set up their future retirement. Even in the event that you believe these life events are decades away, it is best to plan for them as early as possible for your peace of mind, their peace of mind, and in case the unthinkable occurs.

If you need help figuring out which type of life insurance policy is best for your individual situation, contact the professionals at Senn Insurance Agency, serving O’Fallon, MO.