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Protect the people who matter most. Davis Insurance Group helps families in Henderson, Kentucky find life insurance coverage that offers long-term security and peace of mind.
Life insurance is one of the most important steps you can take to support your loved ones — not just today, but for the future.
At Davis Insurance Group, we help individuals and families throughout Henderson, KY compare life insurance options from trusted providers.
Whether you’re planning for income protection, paying off a mortgage, covering final expenses, or securing your children’s future, we’ll help you choose a policy that fits your goals and budget.
We help you understand the differences between term and permanent life insurance options.
Your plan should match your life stage, family needs, and financial goals.
Life insurance provides lasting protection — so your family is supported no matter what.
Not sure what type of life insurance is right for you? Below are answers to common questions people in Henderson ask when exploring coverage.
The right amount depends on your income, debts, mortgage, family needs, and long-term goals. We help you choose coverage that fits your situation.
Term life covers you for a set period, while whole life provides permanent lifelong protection. Each has different benefits depending on your goals.
Many policies are more affordable than people expect, especially term life insurance. Rates depend on age, health, and coverage amount.
The best time is often when you’re younger and healthy — but life insurance is valuable at any stage, especially after marriage, children, or buying a home.
Yes. Many families use life insurance to cover burial costs, medical bills, or other end-of-life expenses.
Absolutely. Davis Insurance Group shops multiple carriers to help you find the best life insurance option for your needs in Henderson.
If you’re ready to explore life insurance in Henderson, KY, our team is here to help you protect your family’s future with confidence.
Request your free quote today and let Davis Insurance Group guide you toward the right coverage.
Term life insurance covers you for an amount of time (term) you choose such as 10, 15, or 20 years. You pay a set dollar amount (the premium) monthly, semi-annually, or annually throughout the duration of the policy term. In the event you should pass and no longer be there for those you love, the term policy pays your beneficiaries the face value or amount of your policy (coverage amount).
Term life insurance covers individuals for a specific amount of time, for a predetermined dollar amount. This coverage serves as a safety net for a period of years and can provide financial security to those you love if something happens to you. Term life insurance is available to those 18 years and older, US citizens, and permanent residents of the United States.
Your expenses and financial responsibilities change throughout your life and so will your coverage needs. Usually term life insurance is offered in 10-, 15-, or 20-year increments.
The amount of coverage you get should reflect how much money you'd like your beneficiaries to receive in the event something happens to you. You can start with your family's day-to-day needs—the entire amount of money it takes to run your household each month or by estimating how much your beneficiaries may need to pay off debts—loans, a mortgage, credit cards, etc. If you have a spouse/partner, it's also important to have coverage for both people, no matter how much each person earns. You might need to cover costs such as additional caretaking of children or time off to settle the estate.
Many condominium owners understand that they can’t deduct their insurance premiums from their taxes. However, there are certain exceptions to be aware of that allow you to potentially gain some tax benefit.
For instance, if you rent out the condo or operate a business from it, you can generally depreciate a portion of the premium you pay for your condo or landlord insurance policy. By taking advantage of these rules, condo owners have the opportunity to make their living spaces more cost effective and efficient in terms of taxation.
Whole life insurance offers coverage for the rest of your life and includes a cash value component that lets you tap into it while you’re alive.
Whole life insurance offers three kinds of guarantees:
Whole life insurance is more expensive than term life insurance because people with a whole life policy are guaranteed to have a death benefit when they die. Term life insurance, on the other hand, offers level rates for a specific period, such as 20 or 30 years. Term life policies are cheaper than whole life insurance because they offer only coverage, not cash value.
Whole life insurance works by first selecting the amount of coverage that best suits your needs. Once you have a policy, whole life insurance can remain in-force for your lifetime—as long as you continue to pay the premiums. Also, a cash value component will accrue over time.
Part of the premium payments for whole life insurance will accumulate in a cash value account, which grows over time and can be accessed with a policy loan, withdrawal or surrender of the policy.
Similar to a 401(k) or IRA, the money in the cash value account grows tax-free. However, if you take out cash value that includes investment gains, that portion will be taxable.
The accumulation of cash value is the major differentiator between whole life and term life insurance. While actual growth varies by policy, some take decades before the accumulated cash value exceeds the amount of premiums paid. This is because the entire premium does not go to the cash value—only a small portion. The rest goes to paying for the insurance itself and expense charges.
Most whole life policies have a guaranteed return rate at a low percentage, but it’s impossible to know how much your cash value will actually grow. That’s because most insurance companies that sell whole life also offer a “non-guaranteed” return rate of return based on dividends. You can choose to apply your dividends to cash value every year, but you can’t know how much that will amount to over time.
It may take decades for a policyholder’s cash value to exceed what’s paid in premiums.
You can tap into cash value with a withdrawal or a loan, or also by surrendering the policy. If you take a loan, it’s tax-free, and you can pay it back, with interest. There are no taxes as long as your withdrawal is less than the portion of your cash value that’s attributable to premiums you’ve paid. If your withdrawal is greater, you’ll owe taxes on the difference because those are investment gains.
Outstanding loans and withdrawals will both reduce the amount of death benefit paid out if you pass away. That’s not necessarily a bad thing. After all, one of the reasons to buy a whole life insurance policy is to get cash value, so why let the money sit there without ever using it?
You want to be sure that you know all the ramifications of accessing cash value prior to making any decisions.
When you buy a policy, you’ll choose a life insurance beneficiary to receive the death benefit. You don’t have to split the payout equally among beneficiaries. You can designate the percentage for each, such as 75% to Mary and 25% to John.
It’s also a good idea to designate one or more contingent beneficiaries. These folks are like your backup plan in case all the primary beneficiaries are deceased when you pass away.
Designating beneficiaries is an important task, as is keeping your designation up to date with your wishes. The life insurance company is contractually obligated to pay the beneficiaries named on the policy, regardless of what your will says. It’s wise to check once a year to verify your beneficiaries still reflect your wishes.
A major selling point of whole life insurance is that it will be in force until your death, as long as you’ve paid the required premiums.
But here’s a kicker: For most policies, the policy pays out only the death benefit, no matter how much cash value you’ve accumulated. At your death, the cash value reverts to the insurance company. And remember that outstanding loans and past withdrawals from cash value will reduce the payout to your beneficiaries.
Some policies allow you to purchase a rider that gives your beneficiaries both the death benefit and the accumulated cash value. This provision also means you’ll pay higher annual premiums, as the insurance company is on the hook for a larger payout.
Here are questions and alternatives to help you decide if whole life insurance is right for you.
Whole life insurance is a product that has some uses, but it’s not for everybody. The additional benefits offered by whole life can often be found by using your retirement and investment accounts for gains, in combination with a term life insurance policy.
Before purchasing any insurance policy, be sure to fully understand the options available, and the policies’ various provisions.
Universal life insurance is a type of permanent life insurance. Unlike term life insurance, which is meant for a specific period, such as 20 years, universal life insurance is in effect for the rest of your life (unless you stop making premium payments).
There are a few types of universal life insurance policies and it’s crucial to understand what you’re buying. Their costs and features are quite different.
Typically, guaranteed universal life has the lowest risk, while variable universal life has the most risk because the cash value is tied to stocks and bonds. On the flip side, you can potentially build more cash value with indexed universal life and variable universal life than guaranteed universal life.
If you’re considering a universal life insurance policy, think about how much risk you’re willing to take on. Don’t be sold on promises of big investment gains that might not come true. Be sure to examine the guaranteed portions on the policy illustration and not just the rosy projections.
Some forms of universal life insurance also offer a cash value component. You can take money out of cash value via a withdrawal or loan. When you die, the insurance company will reduce the death benefit payout to your beneficiaries by the amount of any withdrawals or outstanding loans. But for some buyers, accessing cash value is more important than a full payout to beneficiaries later on.
If you want life insurance coverage that lasts the duration of your life, you might consider a universal life insurance policy. For example, universal life insurance can fund a trust to take care of a special needs child or other dependents after you’re gone.
You might also consider a universal life insurance policy if you have big long-term savings goals and need both an investment vehicle and life insurance, but only after you’ve maximized other savings options such as retirement plans.
A guaranteed universal life (GUL) insurance policy offers a death benefit and premium payments that will not change over time.
You select an age at which the policy ends (such as age 90, 95, 100, 105, 110, or 121). Choosing a higher age will increase the premium.
Guaranteed universal life insurance generally has little or no cash value and is typically the cheapest kind of universal life insurance you can buy. You’re paying for the lifelong coverage, similar to a whole life policy.
GUL is sometimes called “no lapse guarantee universal life insurance.” This is to address recent problems in which traditional, non-guaranteed universal life insurance policies lapsed because the cash value couldn’t cover the policy’s expenses and the cost of insurance. Some policyholders who wanted to keep their insurance in force had to suddenly pay much larger premiums that they never expected.
These newer no-lapse policies promise to stay in force. But there’s a catch: If you make a late payment or miss one, the policy will likely terminate. Since there’s usually no cash value, there won’t be any money to take away. The insurance company will keep the premiums you paid.
Guaranteed universal insurance insurance can be a good choice for someone looking primarily for lifelong coverage and who cares less about the “investment” component of cash value. Unlike other types of universal life insurance, a GUL policy doesn’t offer flexibility with the premium payments or death benefit amount.
Financial situations can change over the years and you may find that you no longer want the GUL policy. There may be little cash value in a GUL policy, so there could be little money to take if you surrender the policy.
But some companies offer another way out: In some cases a return of premium rider can be added when you buy the policy. These riders give you the option to take a partial or full refund on the premiums you’ve paid, but only at certain points after you buy the policy.
Within a time window such as 60 days of specific years after the policy purchase, such as 15, 20 or 25 years, you can give up the policy and get some or all of your premiums back. The percentage returned to you can be based on the policy year, the policy face amount, and/or the age at which you bought the policy, depending on the company.
Here, too, if you’re interested in this option make sure it’s built into the GUL policy before you buy it.
Like universal life insurance, whole life insurance gives you coverage for the duration of your life. It also includes a cash value component.
The biggest difference between whole life insurance and universal life insurance is the cost: Whole life insurance is generally the most expensive way to buy permanent life insurance because of the guarantees within the policy: Premiums are guaranteed not to change, the death benefit is guaranteed and cash value has a minimum guaranteed rate of return.
Also, indexed and variable universal life can give you flexibility with payments and the death benefit amount after you buy the policy.
Whole life insurance, on the other hand, guarantees that your premiums, the cash value guaranteed rate of return and the death benefit won’t change. Whole life insurance is suitable for someone who likes predictability and is willing to pay for it.
In addition, many whole life insurance policies pay dividends. These are like annual bonuses paid by mutual insurance companies to customers, although not guaranteed. You can use dividends to pay premiums, add it to your cash value or simply take the money.
