Life Insurance

Protects against financial hardship after the death of the insured by paying out a lump sum to beneficiaries upon the insured’s death.

Types of Life Insurance?

Term: This is the simplest and generally the cheapest form. You buy coverage for a specific period of time. It can usually be renewed, but premiums will increase based on age and health factors. There is no cash value.
All other types of life insurance are permanent, but there are several varieties. They all include a savings element that builds cash value, in addition to the death benefit. Once that cash value accumulates, it is accessible to the policyholder. The following are some of the common types of permanent life insurance.

Whole Life: You purchase this policy to cover your entire life, as long as you keep paying premiums. Premiums remain constant throughout the policy, and the company invests a portion of your premium that becomes the cash value. These are more expensive than term policies in the early years, but they even out because the premium does not increase.

Universal Life: This policy is similar to whole life, but has the potential for higher earnings on the savings component. It is more flexible in terms of changing premiums and face value throughout the policy. There is usually a guaranteed return on the cash value. Disadvantages include higher fees and the possibility of increasing premiums.

Variable Life: A variable life policy generally has fixed premiums, and you have control over the investment decisions for the cash value portion. However, this is riskier because there is not guarantee for the cash value.

How Much to Buy?

Lampkin, Knowles & Company Ltd offers life insurance but it’s hard to know how much to buy. Many people decide based on an income replacement calculation, between 5 and 10 times the amount of your current income.

Think about your personal circumstances: Is yours the sole income in your household? Are there other expenses, such as college tuition, that may arise in the future? Don’t forget to include potential medical costs, and funeral costs. Above everything, you want to be sure your family does not get stuck with bills, debts or expenses that they cannot afford.

Disability Insurance

Protects the insured against disability by awarding a disability benefit as a partial replacement of income lost due to illness or injury. Besides the short term coverage which is offered through the National Insurance scheme, you may also want to consider Long Term income replacement for permanent disabilities that last beyond 26 weeks.

Health Insurance

Health insurance helps to protect you from the high costs of health care. It works by spreading the cost of care among large groups of people—so insurance paid by one person helps pay for the care of others. In addition to spreading financial risk, health insurance has another important function: improving access to health care services.

Obtaining an individual policy can be expensive. Before purchasing, it is important to ask a qualified and licensed broker to shop around for the best plan that matchers your needs and budget. In general, a low premium means higher out-of-pocket costs when you need care; a high premium means lower out-of-pocket costs. You’ll also want to make sure you are covered in case of a major medical accident and also for preventive care.

The world of health insurance has many terms that can be confusing. Understanding your costs and benefits—and estimating the price of a visit to the doctor—becomes much easier once you are able to make sense of the terminology.

Provider: The clinic, hospital, doctor, laboratory, health care practitioner or pharmacy that provides medical services.

Insurer or carrier: The insurance company providing coverage

Policyholder: The individual or entity that has entered into a contractual relationship with the insurance company

Insured: The person with the health insurance coverage

Copayment: A copayment, or copay, is a fixed amount you pay for a covered health care service, usually when you get the service. The amount can vary by the type of covered health care service.

Deductible: The amount you owe for health care services each year before the insurance company begins to pay.

Coinsurance: Your share of the costs of a covered health care service calculated as a percent of the allowed amount for the service.

Out of Pocket Limit (OOP): An OOPM is the most you should have to pay for your health care during a year, excluding the monthly premium. It protects you from very high medical expenses.

After you reach the annual OOPM, your health insurance or plan begins to pay 100 percent of the allowed amount for covered health care services or items for the rest of the year.

Some plans do not count all your out-of-pocket expenses towards your OOPM (for example, some plans do not count your deductible).

Lampkin, Knowles & Company Ltd can provide you with several insurance options suitable for your unique needs
Contact Lampkin, Knowles & Company Ltd. today to learn more about signing up.