Life Insurance in Colorado
Providing life insurance to residents in Colorado and beyond. Get in touch today!
What Is Life Insurance?
Life insurance is a financial tool designed to protect loved ones in the event of your passing. It ensures that your family members or beneficiaries receive a sum of money upon your death. This sum of money is known as a death benefit. Death benefits can help cover expenses such as:
- Funeral expenses
- Outstanding debts
- Mortgage payments
- Ongoing financial support to your dependents
Life insurance policies typically come in two main types. The two types are term life insurance and permanent life insurance. Term life insurance offers coverage for a specified period. This period usually ranges from 10 to 30 years. Permanent life insurance, such as whole life or universal life, provides coverage for your entire life as long as premiums are paid.
Who is Life Insurance For?
Life insurance is for anyone who has loved ones who depend on them financially. Some people who may benefit include:
- Young professionals
- Parents
- Business owners
- Individuals nearing retirement
Life insurance can play a vital role in protecting your family’s financial future. This coverage may be able to help families maintain their standard of living after the loss of a primary income earner.
How Much Does Life Insurance Cost?
The cost of life insurance is determined based on various factors. These include:
- Age
- Gender
- Health Status
- Occupation
- Lifestyle Habits
The type and amount of coverage chosen can also determine cost.
Generally, younger and healthier individuals pay less. Older or less healthy individuals may pay more. Additionally, those with riskier occupations or hobbies may face higher costs. This is due to increased chances of accidents or premature death.
Insurance companies assess these factors to determine an individual’s level of risk. The cost of coverage is then calculated accordingly. Therefore, providing the correct personal information is important when applying for insurance.
Working with an independent insurance agency can give you an accurate idea of how much life insurance will cost. These agencies can compare quotes from multiple insurance providers and compare their offerings.
What Do Life Insurance Policies Cover?
Life insurance policies typically cover death benefits. Death benefits are paid out to your designated beneficiaries upon your death. These funds can be used for various purposes, including:
- Funeral and burial expenses
- Outstanding debts, such as mortgage payments, loans, and credit card balances
- Daily living expenses for your surviving family members
- Education expenses for children
- Estate taxes and other financial obligations
Some life insurance policies may also offer additional benefits. Benefits may include:
- Cash value accumulation
- Living benefits
- Option to borrow against the policy’s cash value
How Much Life Insurance Do Individuals Need?
The amount of life insurance you need depends on your financial situation and goals. Factors to consider when determining your coverage amount include:
- Your current income and future earning potential
- Outstanding debts, including mortgages, loans, and credit card debt
- Your family’s financial needs, including daily living expenses, childcare, and education costs
- Any existing savings, investments, or retirement accounts
A common rule of thumb is to have enough life insurance coverage to replace your income for a specified period, such as 5 to 10 years. This rule is to ensure your family can maintain their standard of living in your absence. However, it’s important to review your finances to determine how much coverage you need for your situation. A financial advisor or independent insurance agent may be able to help.
Is Life Insurance Taxable?
In most cases, life insurance death benefits are not subject to federal income tax. This means that the money your beneficiaries receive from your life insurance policy is typically tax-free. However, there are some exceptions where life insurance proceeds may be subject to taxation. Proceeds may be taxed in situations where:
- the policy has lapsed
- the death benefits exceed a certain amount
Additionally, if you choose to surrender or sell a permanent life insurance policy for its cash value, any gains may be subject to taxation.
Client Testimonials
Avanti Insurance Services is the best! Susan O’Kelley and her team are knowledgeable, friendly and very helpful with all your insurance needs. I have been working with this office for many years and it feels like a family to me. Please give them a try for all your insurance needs, you will not be disappointed!
I have had my insurance at Avanti for many years and have always had excellent service and quick response to my calls. My agent, Susan O’Kelley, has always found the best coverage and the lowest rates for my insurance needs. I know because I called at least 6 other companies. Give them a call.
Susan is great and very thorough. She helped us with Medicare choices and we have our home and auto insurance with her agency. I would highly recommend her!
We’ve had an initial phone conversation with Susan and an Initial Zoom meeting. We’ve learned a lot about the insurance we’re seeking, and how various health insurance policies. Susan is quite knowledgeable and able to easily share her information and knowledge with others. We are quite pleased with how our meetings with Susan have gone.
We’ve used Avanti insurance for the past few years to insure our business – we appreciate the kind communication from every representative and the time, care, and consideration they take with our needs!
Susan and her staff have always been so helpful with all my business needs. Thanks so much!
How Can Colorado Residents Get Life Insurance?
Whether you’re looking for term life insurance or permanent life insurance, we’re here to help protect your family and their future. Our team of experienced insurance professionals is available to answer any questions you may have.
If you’re a Colorado resident in need of life insurance coverage, Avanti Health First is here to help. Contact our team or start your online life insurance quote to get the coverage that’s right for you.
Insurance Calculators
Avanti Health First has created these calculators to help estimate the amount of coverage you need for life, disability income and long-term care insurance. Click on any of the options below to start the process!
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For questions or concerns, please contact us!
Office
1823 Ford Street, Suite 104
Golden, CO 80401
Phone: 303-278-2278
Email: hello@avantihealthfirst.com