Life insurance is a financial vehicle that is used as a tool for helping both families and businesses to survive the hardships of losing a breadwinner, a key executive, or other important individual. In this same manner, life insurance should also be considered by those who are in the religious community as a way to help safeguard and protect their ministries, as well as their own families and loved ones.
In fact, life insurance can serve a number of different purposes, both pre- and post-mortem. What many people do not realize is that, in addition to offering death benefit protection, certain types of policies also offer savings and investment features that can help in providing cash and income options for retirement.
How to Use Life Insurance During Life
Life insurance for ministers can be used during life in a variety of ways. Permanent life insurance policies that build up cash value over time can allow you to save on a tax deferred basis. This means that there are no taxes due on the growth that takes place inside of the account until the time of withdrawal. This can allow the funds to increase exponentially over time.
It also means that in the future, funds may be withdrawn to help in supplementing retirement income, or for other purposes such as to help in paying for a child’s college education or to pay off a home mortgage.
Protecting Those You Love – Even When You’re Gone
Certainly, life insurance can also be used for its death benefit purposes as well. As a pastor, you’ve likely come to know and love those that you serve – and you would want them to continue within your ministry, even after you’re gone.
The funds from a life insurance policy could be used for helping your congregation to remain strong financially in a number of ways. For example, these funds could help in lessening the financial impact that your passing would have on church offerings, while at the same time, ensuring that expenses can continue being paid.
It may also take time and money to locate a suitable replacement. This, too, could be covered financially by the funds that are received from a good solid life insurance policy, making the overall transition easier in an already difficult time.
In addition, while the policy’s funds can go towards helping to keep the church running smoothly, your family may also suffer a significant financial hardship without your income. Here, too, is where life insurance proceeds can help.
The loss of a breadwinner is always difficult. With this in mind, life insurance proceeds can easily be allocated to your family so that your spouse and children can go on paying their everyday living expenses, without the need to drastically change their lifestyle.
Types of Life Insurance Available
There are many types of life insurance for ministers to choose from. These include both term and permanent, as well as the numerous variations of policies that exist within these categories.
With term life insurance, policyholders are covered for a set number of years – or term. Should the insured pass away while the policy is in force, the beneficiary (or beneficiaries) will receive the stated amount of death benefit in the policy. Term life is considered to be the most basic type of life insurance that is available on the market today. It is also typically the most affordable.
Permanent life insurance provides both a death benefit component along with a cash value or savings component. Here, a portion of the insured’s premium goes towards funding the death benefit, while another portion goes toward the savings aspect.
While the premiums on permanent life insurance are typically higher than for a comparable amount of term life coverage, over time these plans can build up a significant amount of savings for the policy holder.
When purchasing either type of life insurance coverage, the underwriters will typically need to review information about you in order to determine whether you qualify. This information generally includes details regarding your:
- Height and weight
- Smoking status / tobacco usage
- Alcohol usage
- Marital status
- Health condition
- Family health history
- Occupation and income
- Any other life insurance in force
All of these factors are going to play an important role in deciding how much you’re going to pay for your life insurance. There are several factors that you can’t change, like your age or your family history, but there are some that you can. Things like your health and smoking are both two things that you can improve to get lowest insurance rates and improve your chances of getting approved for coverage.
Starting a healthy diet and getting regular exercise can do great things for your life insurance policy. It can help you lower your blood pressure and heart rate, both of which will translate into lower monthly premiums.
Smoking is one of the worst things that you can do for your life insurance plan. Smokers pay an average of twice what non-smokers pay. With some companies, they could be as much as three times more. If you’re looking to get the lowest rates, kick the cigarettes.
If you’re concerned about qualifying for life insurance with health conditions, there are companies who offer life insurance policies without a medical exam. So don’t let anything stop you from getting the coverage you deserve.
How to Purchase Life Insurance for Ministers
When purchasing life insurance, it is best to be able to directly compare the policies and premiums that are available to you. This way, you can get a much better idea of the very best option for you.
We can help you in determining your options, as we work with many of the top rated life insurance companies in the marketplace today. You can start comparing premium quotes by using the form on this page. We can bring all of the lowest rates for your specific circumstances. You can look at the cost and benefits of dozens of different policies all at once.
Unlike traditional insurance agents, our agents are independent, which means that we represent dozens of highly rated companies across the nation. That means we can help save you both time and money on your insurance plan. We can bring all of the lowest quotes directly to you. Don’t waste your time calling different companies and answer the same questions.
If you have any additional questions regarding what type of life insurance coverage is best for you, as well as how to determine life insurance premium quotes, please feel free to call us, toll-free, at 888-229-7522 and we will be happy to help.
We know that finding the right life insurance policy can be a long and difficult process, but we are here to help. We can help connect you with the perfect policy for you and your family. Everyone is different, which means we all have different needs for life insurance.