Find the Best Life Insurance Quotes in Kansas City

How to choose life insurance in Kansas City

A life insurance policy provides a predetermined amount of money to your beneficiaries to help support them after your passing. Life insurance can also serve as an inheritance for your loved ones or act as a charitable contribution in your name.

Life insurance is often purchased by people in Kansas City who support other family members and want to ensure their family is provided for after the insured person has passed away.

Life insurance can help your family cover:

• Funeral and medical bills
• Debt and essential expenses (mortgage payments or college funds)
• Federal estate taxes (neither Missouri nor Kansas has a state estate tax)

There are two main types of life insurance available in Kansas City: term life and whole life. There are a variety of factors that determine which is best for you, including the length of the policy and the amount you’re able to pay in premiums.

Term life insurance

Term life insurance provides coverage for a length of time agreed on in the contract. It only protects your dependents if you die within your policy term; once the policy term ends, all premiums and benefits end. Most policies maintain the same payout and premium throughout the term.

With this insurance, you should add up your costs and choose a term that best fits your needs. For example, if you have two children who will be attending college, you’ll want to ensure your policy will last long enough to cover those costs.

Whole life insurance

Unlike term life insurance, whole life insurance has an investment component (tax-deferred cash value) that grows while your policy is in place. With this policy, you can borrow against the account or surrender it for payout.

These are often more expensive but guarantee a return on investment. Whole life insurance is usually a better idea for those who purchase life insurance early in life because of the length of time it takes to build a cash value and the potential for lower premiums.

Here’s a further breakdown:

Another option is universal life insurance—a type of whole life insurance that is more flexible and has lower premiums. With this policy, a portion of your monthly premium goes toward the death benefit, and the rest is invested. Universal life insurance can be riskier because the return on investment depends on the market.

To decide which plan is best for you, talk to a financial planner or an insurance agent who can assess your needs and help you with a strategic plan that will provide your family with financial security.

Because of the importance and high values of life insurance policies, it’s important to work with reputable companies. Large firms such as State Farm, MetLife and Prudential Financial are financially stable companies with an extensive array of life insurance options.

You should look at the company’s reviews and financial strength as well as the Missouri Department of Insurance’s Consumer Complaint Report before choosing a company. A.M. Best is one of the leading companies to rate financial strength—Northwestern Mutual, Guardian Life and MassMutual are just a few companies that maintain an A++ rating with A.M. Best.

The cost of life insurance in Kansas City

Insurance companies look at many factors when determining the price of a life insurance policy, including the insured person’s:

• Age
• Gender
• Health
• Personal/family medical history
• Occupation

The type of insurance, length of term and benefit amount will also impact the cost of your life insurance premiums.

While price can be a deciding factor, opting for less coverage at a lower cost may not best fit your needs. Life insurance is a long-term solution, not a short-term investment, so look at your overall financial situation to decide what coverage is right for you and your family. You can save money by determining how much coverage you need and then comparing offers from different life insurance companies.