Types of Life Insurance

Life insurance is often misunderstood because there are so many types of coverage. You might have heard of the various types of life insurance, but there are basically two primary types. Here at the Michael Taylor Agency, we want to help our Columbia, SC family understand its options. 

Term Life Insurance

Term life insurance is life insurance coverage that is active for a set period of time, such as 10 years or 30 years. Generally, term life insurance has fixed premiums and a fixed payout upon the insured’s death. Those who choose term life insurance often do so to have coverage during an important period. 

For instance, they might have it for 30 years until their mortgage will be paid off. This helps their family in case tragedy strikes while they are still making house payments. Term life is also a more affordable option for many families.

Permanent Life Insurance

Permanent life insurance is insurance coverage for your whole life, as long as you pay your premiums every month. Permanent life insurance policies are attractive to individuals because they build cash value. Some also offer flexible payments and flexible death benefits. There are two popular types of permanent life insurance: whole life and universal life.

They are similar but have some distinct differences. Both provide lifelong protection and build cash value. The main difference is in how that cash value is built. With whole life, the value is built with low risk and it is guaranteed. A universal life policy’s cash value is built in a more high-risk fashion and is not guaranteed- it depends on the performance of the market.

Both permanent life and term life offers the policyholder some great benefits. If you are in the Columbia, SC area and are looking to obtain new or update your current life insurance policy, stop by or give the Michael Taylor Agency a call today. We can help you find the coverage you need for the life you love!

 

How a Cash Value Life Insurance Policy Can Help You Prepare for Retirement

At Michael Taylor Agency of Columbia, SC, we want our insurance products to help you live a better life from your youth through retirement. We want you to be able to provide for your family in your death.

You have many investment options available to you. This blog explains how a permanent life insurance policy with a cash value component helps you prepare for and pay for retirement.

You might not have thought of life insurance as a way to save for retirement, but you can use it that way when you choose a policy with a cash-value component. You probably think of term life or whole life, but with an indexed universal life policy, you can provide for your family with a death benefit and save money in a cash-value account, tax-free. That savings let you have a nest egg into which you can dip into for purchasing cars or paying for a medical emergency. 

Indexed Universal Life Insurance Defined

Universal life refers to a permanent life insurance policy with a saving account component. Your monthly premiums go into a cash-value account as well as paying for the insurance death benefit. 

The indexed part refers to the stock market index. The cash value savings or investment account works with the index which determines the amount of money the account earns. Your investments are typically protected with a floor. That means your account balance cannot drop below a certain minimum even if the stock market does badly. You can exceed the current interest rate by using this method, so you earn more on your investment without risk. 

You typically get a flexible premium option that lets you pay on a fixed amount on a schedule. You can request to adjust the premiums or the death benefits. 

Call Michael Taylor Agency of Columbia, SC today to learn more about how you can save for retirement and insure your family at the same time. We can help you build the nest egg you desire.

Is there a specific age limit to get a life insurance policy?

You have probably heard of the phrase that “the younger you are, the healthier you are and the less expensive your life insurance is.” Purchasing life insurance early enough ensures that those you leave behind upon your demise are financially shielded, and other expenses like your end of life expenses and burial are handled.

Is there a limit?

Life insurance is age-banded. This means that with every passing year, the policy gets more expensive. At Michael Taylor Agency, we advise our insurance holders to buy life insurance early, as the optimal age for purchasing life insurance is generally cheaper right after birth. In truth, age is a determining factor. Premiums are more expensive for older people than for young people. However, those who wish to buy life insurance at a later age are allowed to do so up to the age of 90 years.

Do you have dependents?

The most influential reason for purchasing life insurance is the number of people who depend on you financially. If you are still working and have children or a spouse who depends on your income, then it makes sense buying insurance at a later age.

Do you have assets?

Your car, home, business, and other assets around Rock Hill or Columbia, SC will need to be taken care of once you are gone. If your assets are on loans and debts, life insurance can help assure your family that they are financially protected and not burdened by large sums of payments in the future.

If you are looking to buy life insurance, you may need to contact your insurance provider to know the age limit, which ranges from a maximum of 75 to 90 years. Reach us at Michael Taylor Agency serving in Columbia, SC for more information and policy inquiries. 

Types of Car Insurance Coverage

It is useful to know the types of coverage when you’re looking for auto insurance. With the right coverage, you’ll know whether you’re covered for specific incidents that may occur. There are many types that include basic coverage, which may be required by the state that you’re in. In Columbia, SC, you must have a certain amount of liability insurance, uninsured motorist, and underinsured motorist coverage. Michael Taylor Agency can help you with that.

Basic and Secondary Insurance Types

  • Liability insurance – protects you by covering damages and injuries from an accident that is deemed to be your fault.

  • Comprehensive coverage – is insurance for your vehicle if it becomes damaged as a result of anything other than a car accident, such as vandalism, fire, or theft.

  • Collision coverage – is enabled when you collide with another vehicle or object.

  • Uninsured and underinsured motorists – is coverage that sometimes used together. It can cover damages to your vehicle if the other driver leaves the scene or is not fully covered.

  • Personal Injury Protection – covers medical expenses. Depending on your policy limits, you could have complete medical coverage of an injured individual.

Miscellaneous Insurance Types

  • Rental reimbursement insurance – covers the cost of a rental if you need a vehicle while yours is being repaired after an accident.

  • Classic car insurance – is for vintage vehicles and specific older model cars.

  • Gap insurance – offers insurance coverage that protects you over your auto insurance limits.

Although you do not necessarily have to purchase the maximum amount of car insurance, it is a good idea to have some coverage in case of an accident. If you are found responsible for an accident, you could pay hundreds of thousands of dollars in medical bills and vehicle repairs. In Columbia, SC, Michael Taylor Agency can help you secure auto insurance for your vehicle.

Columbia SC: Who Should Be Your Life Insurance Beneficiary?

The Michael Taylor Agency in Columbia, SC gets a lot of questions about life insurance policies. One of the most confusing things is who should be a beneficiary or should you have more than one beneficiary? The first thing that we always ask is: who is affected the most by your financial responsibilities when you are gone?

The biggest thing to consider is your loss of income when you pass away. This doesn’t mean that a retired person wouldn’t want coverage either. Many times, monies may be owed. You may have a dependent, spouse, partner, relatives, charities or loved ones that would benefit from wealth after you are gone. 

Considerations for Life Insurance Beneficiaries

Do you have any loans such as mortgages, car loans, or mutual property owned? You may need to consider the financial impact of these loans on the people that you leave behind. 

Another scenario to consider is mixed families. Do you have step-children and children that depend on you? Are you a single parent with an ex-spouse or partner? Do these people need money in order to make ends meet if you were gone?

Mythbusters of Life Insurance 

Oftentimes, we run across clients that think that they don’t qualify for life insurance. 

  1. Life insurance is too expensive. We will teach you how to invest in life insurance that is extremely affordable. Don’t be fooled into thinking that because you are older that you can’t get life insurance. You can. Of course, the younger you are when you make this investment, the better.
  2. I can’t have life insurance because I am disabled. Rest assured that coverage is still available even if you are disabled. You are not guaranteed that your rates will increase. We will find you the best rate possible when you go to The Michael Taylor Agency. 

If you have any questions about getting a reliable life insurance policy for your lifestyle, call The Michael Taylor Agency at 803-736-6969 or visit our office in Columbia, SC. 

 

3 Tips for Buying Home Insurance in South Carolina

Owning a home is a dream come true for most people. It’s something you can call your own, something you can make your own. With a home insurance policy in Columbia, SC, you can have peace of mind knowing that this important asset is protected. If you’re looking for a new home insurance policy or want to switch from an existing one, the team at Michael Taylor Agency has a few tips to help you get started.

1. Compare Several Insurance Quotes

To start, work with an insurance agent to compare several home insurance quotes. Coverage and prices vary so be sure to go over all the fine detail and ask the agent any questions you may have, as this is a very important step in the process.

2. Bundle Your Insurance Policies under one Company

After choosing a home insurance policy, consider bundling it with your other insurance policies under one company. Insurance companies will save you money on your premiums when you bundle everything with them. This is one of the easiest ways to save money on a new home insurance policy in Columbia, SC.

3. Work with a Reputable Insurance Agent

To make sure you get the right home insurance policy at a price you can afford, work with a trusted and reputable insurance agent. We will help you find and compare quotes, bundle policies, and save you money. We are also there to answer all of your questions before, during, and after you purchase a home insurance policy.

To learn more about acquiring a home insurance policy, contact the team at Michael Taylor Agency today. We can be reached at 803-736-6969.

Ideal Age to Get Life Insurance

You hear commercials for life insurance for people who are 55 or older. However, you might not want to wait until you’re older. Although there isn’t a specific age when you should obtain a policy, you should take into consideration certain factors to determine the right time. At Michael Taylor Agency, serving Columbia, SC, and the surrounding region, we help people get life insurance when it’s right for them. 

Student Loan Debt

You may want to get life insurance if you’re in your 20s and have student loan debt, in particular, private student loans. Loans from the government are automatically dismissed when you pass, but private student loans aren’t always forgiven. If you have a type of loan that doesn’t go away when you pass, your mother, father, or whoever cosigned or is your next of kin will get stuck with your debt. 

You’re Married 

Married people should consider their spouse when deciding when to get life insurance. Would you really want to leave your wife or husband with your final expenses and debt and without your income? Ultimately, once you get married, you should get life insurance to protect your loved one. 

You Have Kids 

You don’t want your kid to get stuck with your final expenses and any debt you have. Plus, you want to make sure your kids are taken care of if anything should happen to you. While you might be young, you never know what could happen. Cancer or a car accident could take your life prematurely, and you could leave your child behind without any funds. Your partner could have the burden of taking care of your kids without your income.  

Get a quote for life insurance, no matter your age, by calling Michael Taylor Agency, serving Columbia, SC, and the surrounding region, at 803-849-8500.

Tips to Help You When Picking Your First Auto Insurance Policy

At Michael Taylor Agency, serving the Columbia, SC area, we understand that buying your first auto insurance policy can be both exciting and overwhelming. We want to do as much as we can to ensure the experience is a positive one and one that you can walk away from feeling comfortable and confident. Here are a few tips that you should follow as you go about picking your first auto insurance policy. 

Learn Auto Insurance Terms

Prior to searching for an auto insurance policy, take the time to research common auto insurance terms that are used that you may not fully understand. Terms such as comprehensive coverage, collision insurance, deductible and policy limits are all important terms that you need to understand before selecting an auto insurance policy. Educating yourself on the meaning of these terms can help ensure you understand what you are and are not getting when you select an auto insurance policy. 

Decide How Much Insurance You Need

Another important tip is to decide how much insurance you need. It is beneficial to most people to purchase more than the state minimum for auto insurance. A great insurance agent can sit down with you and help you determine how much insurance you need. But there are calculators online that can also help you decide. 

Compare Prices and Reputation

Lastly, take the time to get quotes for auto insurance and then compare prices and the reputation of companies providing you with these quotes. Cheaper is not always better, but comparing price and reputation will guide you to a reputable and fairly-priced company. 

When you are ready to buy your first auto insurance policy in the greater Columbia, SC area, let Michael Taylor Agency help you. Give us a call now to schedule an appointment with us and let us help guide you toward your ideal auto insurance policy. 

Life Insurance Options for Smokers

A growing number of Columbia, SC residents want life insurance but feel limited because they smoke cigarettes, cigars, or pipes daily. We at Michael Taylor Agency can help you overcome this problem and provide you with the excellent life insurance policy that you deserve. 

Smokers Will Struggle to Find Life Insurance 

While a smoking habit doesn’t necessarily mean you won’t get life insurance, it can make the situation a challenge. For example, you may find that companies increase your payments or limit your coverage to certain kinds of diseases. This situation is understandable, as smoking decreases your lifespan, but is very frustrating indeed. And smokers shouldn’t hide their habit, as your doctor will tell your providers. 

Limitations Aren’t Just for Smoking 

If you don’t smoke cigarettes, cigars, or pipes but do chew, vape, or use snuff, you may still find your coverage limited. Simply put, your body is still exposed to nicotine, which can damage various elements of your health. However, your limitations and increased costs will likely be less severe because smoking is much more dangerous and unhealthy. 

Marijuana Use May Affect Coverage 

The legalization of recreational marijuana in many states could have a profound effect on many insurance rates. Simply put, marijuana smoking is a problematic health issue that many providers may punish you for doing. Some providers may even deny you coverage also though smoking marijuana is legal in your state. Or they may allow coverage if your marijuana use is medicinal. 

Let Us Help You 

If you are struggling to quit smoking but need great life insurance in Columbia, SC, please contact us at Michael Taylor Agency to learn more about how we can help. We’ll figure out a life insurance policy that meets your needs and will fight as hard as possible to limit your excess costs. 

Types of insurance a retiree might need

Every working individual in Columbia, SC will one day leave the working world behind and settle in retirement mode. One of the things that will change significantly is your financial needs. You will no longer be dependable on that monthly salary you were getting while working but instead living off those retirement savings, you have saved diligently over the years.

Aside from your retirement savings, the types of insurance policies you have also played a critical role in your financial matters. That is why at Michael Taylor Agency, we recommend retirees to have these types of insurance.

Medical insurance

Healthcare cost is increasingly going high in Columbia. Therefore, it’s prudent that aging retirees purchase medical insurance that will help cover costly medical bills for major illnesses that comes with advanced age. Most seniors at or beyond the age of 65 are eligible for Medicare. Seniors who are still working at this age may also get benefits through their job.

Life insurance

While the critical purpose of life insurance is to replace lost income, a retiree may want to keep this coverage if they owe someone, have dependents or spouse who may benefit from the wealth that will be left behind once they’re no more.

Annuities

An annuity simply protects one from running out of finances. It is a particular type of retirement insurance where you hand over a huge sum of money to an insurance company like Michael Taylor Agency in exchange for future payments. How the payments are calculated entirely depends on the type of annuity you choose. 

Annuities are typically the best for retirees who want to remain stress-free and secure about their source of income. For quotes and policy discussion visit us at Michael Taylor Agency in Columbia, SC today.