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Variable Life Insurance: When you Need Flexibility

Variable Life Insurance: When you Need Flexibility text overlaying image of a family covered by an umbrella Looking for the ideal life insurance policy? While you’re researching all of these options, you might want to consider one that’s often overlooked: variable life insurance. This is a type of whole life insurance policy with a cash value determined by the amount of premiums paid, the policy’s fees, and the success of your investments. If you are interested in this kind of life insurance policy. You need to first understand how the cash value works, how the death benefit is paid out, and how flexible these policies are.

What is Variable Life Insurance?

Variable life insurance is a whole life policy that protects you for the rest of your life. As long as you keep your premium payments up to date. Every variable life insurance policy is made up of 3 components: the death benefits, the premium, and the cash value. The premiums are your monthly payments you make to keep your policy active. The premium goes toward the cost of insurance and fees then the rest goes toward your policy’s cash value. The cash value is a tax-deferred savings account where you can invest in different mutual funds. You have the freedom to keep an eye on your money and decide what gets invested where.

If your cash value investments do well, you can use it to increase your death benefit. Or cash some of it out as you need it. It’s important to know that with investments there also comes the possibility that the investment won’t do well and you can lose money. When you die, the death benefit is the amount of money your beneficiaries get.

Cash Value

The cash value of a variable life insurance policy works differently than the cash value of a whole or indexed universal life policy. Each variable life insurance policy comes with a proposal that tells you all the ways you can invest the money. Cash value investment choices work just like mutual funds. In that the money would be put into a certain set of investments. Like a money market account, bonds, or an index fund. With variable life insurance policies the insurance company may also offer a fixed interest investment alternative. This option is less risky but it also means your potential rewards are lower as well.

Variable life insurance gives you more ways to make money than other cash value life insurance plans, like whole life insurance, because you can choose how to invest your money. With that being said, variable life insurance plans rarely have a promised return rate. Because the performance of your investment market directly affects your cash value. Meaning in a good year your account will earn a healthy return on investment. But in a bad year you’re risking losing money. Additionally, most insurance companies will put a limit on how much your investment can earn, so you can’t make as much as you would with an independent savings investment.

Death Benefit

Most of the time, variable life insurance death benefits are paid out in one of two ways:

Level death benefit – This means the death benefit will be equal to the face value when you buy the plan.
Face amount plus cash value – This structure costs more, but your beneficiaries will get the face value of your death benefit as well as whatever is in your cash value account.

Some policies do offer other types of benefit structures like paying out the face value plus all of the premiums paid. But the two listed are the most popular. The death benefit is basically a goal based on an assumption about how well the cash value will do, like a 4% annual rate of return. If this rate of return holds, the insurer assumes the cash value will equal the face value of the insurance you pass away. However, if the cash value doesn’t go well, it can actually reduce your benefit based on the terms of your policy. No matter how your death benefit is set up, you should always check the policy terms to make sure the death benefit is guaranteed. If it is, make sure the expected value and the guaranteed value.

Variable Universal Life Insurance

Variable universal life insurance works just like a regular variable life insurance policy. However it comes with extra flexibility. With variable universal policies you get the option to put your cash value towards your premium. Meaning if your investments do well and you have enough in your cash value account the policy will essentially pay for itself. When you pay your premium you can choose to pay more or less than the normal premium out of pocket. Giving these policies the nickname “flexible premium policies”. Even though most variable universal life insurance plans do have a minimum and maximum premium limit, you can pay any amount between the limits. So, you can:

Pay a portion – If your monthly payment is $500, you can choose to pay $250 out of pocket and use your cash value to pay the other half. Keep in mind that you can only do this if you have a certain amount saved in your cash value amount.
Pay nothing – When your cash value has enough money in it, you can put it entirely towards your premium payment.
Pay more – If you want to get to the pay nothing section quicker then early on you can put more than the premium amount in so the cash value and investments build up quickly. This is often the best choice if you have a large income and want to be able to stop paying fees in the future like when you retire.

Single Premium Variable Universal Life Insurance

We know the policy names are getting long, stick with us, we’ll explain. These plans let you buy coverage and add to the cash value of your policy in one payment. You buy coverage and make all of the minimum cash value contributions at the same time. It’s a hefty chunk of change. But in that single payment you’re fully funding your policy and automatically guaranteeing a large death benefit. Single-premium life insurance plans are also helpful because they let you pay for long-term care with policy loans or by adding a rider. Some single-premium life insurance policies let the policyholder withdraw money from the death benefit tax free to pay for living expenses.

Single-premium whole life and single-premium variable life are two of the most in-demand single-premium policies. How each program builds up a cash value is different. The first one has a set interest rate with no risk. The second option invests the cash value in carefully managed portfolios. Which comes with the risks and possible rewards of active investing.

Variable Life Insurance VS. Whole Life

Both variable and whole life insurance covers you for your whole life. But whole life insurance is less risky and pays out less. Whole life insurance has the following:

Fixed premiums – You pay the same premium every month.
Level death benefit – The death benefit will not lose value, it is guaranteed and remains the same.
Guaranteed returns – Your cash value will keep going up. And when the insurance matures, it will usually be guaranteed to be equal to the death benefit.
Fixed growth potential – There is no room for your investment returns to be higher.

Variable life insurance plans can make the cash value grow much faster. And in some cases, the cash value can even be used to pay the premiums. These plans have more flexible premiums than whole life insurance policies.

Variable Life Insurance VS. Term Life

If you have monetary obligations that aren’t likely to go away in the next 20 to 30 years. Term life insurance is likely a better choice than variable life insurance because it costs a lot less. For example, if you want to make sure your family can stay in your home if you die and you have a 15-year debt, term life insurance would be a better choice. In the same way, if you think you can save enough money over the next 20 years to take care of any future financial responsibilities, you should just buy term insurance as a backup. You would have to pay more for variable life insurance if you wanted a death payment for the rest of your life.

Working With EZ

Even though this type of policy has some risks. It is the best way to invest in life insurance for the long run. Variable life insurance is a good choice for people who want a permanent life insurance policy that lets them build up cash value. Or people who want control over their investment options and the freedom to choose where to put their money. However, it is only for people who have enough money to pay the premiums for the rest of their lives. Even though there are more risks with this type of insurance, it could be worth it if you can afford it.

However, if you want cheaper coverage with more of a guarantee. You might be better off with a term life insurance policy because the premiums are cheaper. And you can convert it into a permanent life insurance policy. Working with an agent who specializes in life insurance is the best way to find the right policy for you and your needs. Everyone has their own needs, goals, and ways they can spend their money. At EZ.Insure, we know that you and your family want the best security. But we also know you have to stay within your means.

So, we will do everything we can to find you the best policy at the best price. We want to make it as easy as possible for you to do so and the best part is that everything we do is free! EZ will help you with everything. From answering all of your questions to helping you choose a policy and finish the registration process. We will also help you after your plan has been implemented. To get started, just type your zip code into the bar below or give us a call at 877-670-3560.

Survivorship Life Insurance – What You Should Know

When it comes to life insurance, married people have two choices, individual policies or joint policies. Most couples buy separate policies for each person. But for some couples it makes more sense to get a single policy that covers both people. Choosing to buy a policy together you can buy a joint policy or a survivorship policy. A joint policy is known as a first-to-die policy. Meaning that though both people are covered the benefits are paid out when one of them passes.

Survivorship policies are called second-to-die insurance, meaning that benefits aren’t paid until both members pass away. Most couples don’t choose survivorship policies because it takes longer for the death benefit to pay out. However, survivorship policies are useful for estate planning and a source of money for children or grandchildren who may always depend on their parents. Below we’ll go into detail about how survivorship policies work so you can decide if one is right for you.

How Survivorship Life Insurance Works

A survivorship life insurance policy can either be a term or permanent policy. A term policy covers you for a certain number of years before you have to renew it. A permanent policy, on the other hand, covers you for the rest of your life as long as you pay the premiums. Most policies for survivorship life insurance are permanent. Most people buy survivorship coverage with permanent whole life or universal life insurance instead of term life insurance.

The reason is simple: most couples who buy a survivorship policy don’t want protection for a short time. Survivorship policies don’t pay out until both people who are covered die. So, when the first person covered by the policy dies, the second person must keep paying the premiums to keep the policy going. When both policyholders die, the death benefit is paid to whoever the policyholders named as their beneficiary. Permanent life insurance builds up cash value that can be used if necessary.

Reasons To Have A Survivorship Policy

Estate Planning

Typically couples with a high networth often buy survivorship life insurance so that their children will pay less in estate taxes once they pass away. When the first spouse dies, the other spouse will not have to pay taxes. However, if their combined assets are worth more than the federal exemption level, beneficiaries have to pay federal estate taxes once the second spouse dies. There are currently 12 states plus the District of Columbia that have even lower estate tax thresholds. And 6 states have inheritance taxes. If both spouses die at the same time, a survivorship policy can help pay estate taxes and other costs immediately. It can also help make sure that the beneficiaries get an equal share of the assets. Especially if the assets, such as a family business, are hard to sell.

Business Succession

Survivorship policies don’t necessarily have to be a married couple, it can be any two people, even business partners. When both business partners pass away, a survivorship policy can give the money needed to transfer the business to its new owner. If there is more than one new owner, the death benefit can be split amongst each of the business partners to make sure there is enough money to take over the business.

Caring For Permanent Dependents

If you have a child with special needs or another person who will always depend on you. A survivorship life insurance policy will make sure that you leave enough money for them to be taken care of for the rest of their lives. The money from the policy could be put into a special needs trust. So, that if both parents die, the child will still have some money.

Coverage With Medical Issues

When one spouse can’t afford individual life insurance because of a medical condition, but the other is in good health, a survivorship policy can be a cheaper way to get coverage.

More Affordable

Most of the time, buying a permanent life insurance policy can cost five to fifteen times as much as buying a term life insurance policy. But permanent survivorship life insurance policies can sometimes be cheaper in the long run than buying two separate policies.

You Need Cash Value

Survivorship policies can be set up so that the cash value of the policy helps the spouse who is left behind. Even though the death benefit won’t be paid out until both of the policyholders have died. Some permanent policies can build up a cash value that can be used while one of the spouses is still alive. If the policy builds up enough cash value, the surviving spouse can take out a loan from it to pay for funeral costs or policy premiums while the policy is still in force.

Policy Costs

In general, it costs more to buy two separate $1,000,000 policies than to buy a single $1,000,000 survivorship policy. It’s easy to see why. With two separate permanent policies, insurance companies have to plan for a total payout of $2,000,000. However, when two people are covered by a single life insurance policy, the total payout is only half as much. Individual life expectancy is also longer than joint life expectancy, since one insured person usually dies after the other. This means that second-to-die policies may be cheaper than first-to-die policies. But the actual cost of a life insurance policy can vary a lot depending on many things. Such as age, health, lifestyle, type of insurance, and the insurance company. Riders are extra features that can be added to a policy to make it fit the needs of the policyholder. Here are some examples:

Estate Preservation Riders – These are used for tax planning purposes when extra death benefits may be needed in the first few years of the policy.
Level Term Rider – Provides extra coverage for each insured person up to age 95. The rider, which each insured person must apply for on their own, can usually be changed to a whole-life policy if it is done before a certain age.
Monthly Deduction for Death and Disability Waiver – This benefit, which only applies to one of the insureds. Can help make sure the policy stays active by waiving premiums if the couple’s income drops because of death or disability.

Survivorship Pros and Cons

A survivorship life insurance policy can help you and your spouse take care of your family after you’re gone. However, this type of life insurance has some drawbacks. Before you buy a life insurance policy, you should think about the pros and cons to see if it’s the right choice for your family.

Pros

When deciding on a survivorship policy, most couples think about how much it will cost. Whether it’s first-to-die or second-to-die. The premiums on a joint policy are likely to be more affordable than the premiums on two separate policies. First-to-die policies cost more money than second-to-die policies. The ability to make your inheritance equal is another benefit of a survivorship policy. Forbes says that if you have more than one beneficiary, you can set up the policy through a trust that will divide your death benefit equally among all of your dependents.

Lastly, the process of getting a survivor policy is less strict than getting other types of life insurance. This means that if you or your spouse have health problems that might keep you from getting a traditional life insurance policy, you may still be able to get coverage through a survivorship policy.

Cons

Most couples think about how much it will cost when they choose a survivorship policy. Whether it’s first-to-die or second-to-die, the premiums on a joint policy are likely to be cheaper than the premiums on two separate policies. Policies that pay out more when the first person dies are called “first-to-die” policies. A benefit of a survivorship policy is that you can make sure that everyone gets the same amount of your inheritance. Forbes says that if you have more than one beneficiary, you can set up a trust that will divide your death benefit equally among all of your dependents.

Lastly, it’s easier to get a survivor policy than it is to get other types of life insurance. This means that even if you or your spouse have health problems that might keep you from getting a traditional life insurance policy, you may still be able to get coverage through a survivorship policy.

Life Insurance With EZ

Not sure what kind of policy you need or where to start? You have to compare plans to find the best one for your needs because there are so many different kinds of life insurance. You could use online tools or talk to an agent. Everyone has their own needs, priorities, and ways they can spend their money. At EZ.Insure, we know that you and your family want the best coverage. But we also know you have to stay within your budget.

So, we will do everything we can to find you the best policy at the best price. And we want to make it as easy as possible for you to do so! We’re here to help, and the best part is that everything we do is free. We will help you with everything, from answering all of your questions to helping you choose a policy and finish the enrollment process. We will also help you after your plan has started. To get started, just type your zip code into the bar below or give us a call at 877-670-3560.

What to Do with Life Insurance Money

what to do with life insurance money text overlaying image of a heart on a pile of money After the passing of a loved one, the proceeds from a life insurance policy can help remove a portion of your stress. Allowing you to focus on your emotional needs without worrying about money. However, a sudden large sum of money can also bring up some hard choices. Before deciding what to do with it, you should first look at your assets and plans thoroughly. Do an overview of your financial situation to help decide what makes sense for you.

Taking a little time to really consider everything will not only help you decide how to use the money. But also, how you should collect it. You can generally receive a death benefit payout in a lump sum. Or in regular installments, either monthly, quarterly, annually, semi-annually etc. Below we’ll take a look at some of your options for using the payout to give you an idea of what you should be considering while making your decision.

How Life Insurance Payouts Work

For many people, receiving a death benefit for the first time can be overwhelming, especially when you don’t know how the process works. Don’t worry, everything is fairly simple. First you have to notify the life insurance company that your loved one has passed away. Then provide appropriate documentation, such as a death certificate. Once the claims process starts, you will typically receive payment within two weeks or less. Depending on how you choose to collect the payout.

The only time this would take longer is if there was an issue surrounding your loved one’s passing. Such as they committed suicide or gave the insurance company false information on their application. Both of these instances would render the payout void, which means that you won’t receive payout at all. However, let’s assume everything goes smoothly. When you receive the cash, it is tax-free which is a great benefit to you. Now, how do you use this money? There are no rules here, you are free to do whatever you want with this money. Below we’ve detailed some ideas on how you can use your payout.

Pay Off Debt

If you’re buried in debt, like many Americans are, it may make sense to take the lump-sum option and pay off any high-interest credit card debt or student loans. This not only eliminates your debt but frees up your income for monthly expenses. Even if you were to invest the money, if you have credit card debt, it’s unlikely that investment will pay off more than the interest you’re being charged on credit card or student loan debts. Having that lump-sum in your pocket may sound nice. But think about the extra money in your account each paycheck that isn’t going towards trying to pay down a debt. Overall it’s a smarter financial move that will actually save you more money than if you were to just start spending the money.

Build An Emergency Fund

A life insurance payout is a great opportunity to start or add to an emergency fund. A portion of your life insurance benefit can be placed in an interest earning account. Such as a savings or money market account. This money can later be used to pay for any future emergencies that could cost you a lot of money. Savings accounts ensure that unexpected expenses such as medical emergencies, home repairs, or temporary unemployment won’t derail your savings plan. Or worse, put your family heavily into a debt. Most financial experts recommend that you should have at least 3 to 6 months’ worth of living expenses in your savings. And if you’re self-employed or have unstable income, you should be saving twice that.

Consider Buying An Annuity

It’s common for beneficiaries to need the life insurance payout to help cover their monthly living expenses. This is especially true for young families who are trying to replace the breadwinner’s income, or for seniors whose spouse passed away and they now no longer have a second income or social security check. In these situations, it may make sense to use your life insurance policy death benefit to buy an annuity. Which is a type of account that will pay out a set amount of money over time, like monthly or yearly, they can even be set to continue for your entire life.

Some life insurance plans will even offer an annuity as a payout option for the death benefit. There are several types of annuities all designed to help reach specific goals. Some annuities are designed to provide an immediate stable stream of guaranteed income. Others are designed to help you save for long-term plans like retirement. However, annuities are complicated, so, if this sounds like an option for you, make sure you read any and all materials that come with whichever plan you’re considering. It may also be helpful to speak to a financial expert to make sure there are no hiccups or misinformation.

Collect Installments

If the idea of receiving regular payments over time sounds appealing, but an annuity seems too complicated, there is a similar and simpler option. We mentioned earlier you have the option to receive your payout in installments from the life insurance company. Installment payments can provide a similar income guarantee without all the extra complexity. For example, the life insurance company may pay out 10% of the total death benefit every year over a 10 year period. The portion of the death benefit that is still in the account will typically continue to earn interest so it’ll also make more money over the years. However, keep in mind that while the death benefit itself may not be taxable, any interest you earn after opting for an installment payout may be taxable.

Invest

If you don’t have any pressing needs to use the money towards, like if your emergency fund is all set, bills are paid, debt is handled, it may be a good idea to take all or some of the payout and invest it. You can invest it in a combination of stocks and bonds for potential financial growth. If you’re not fully funding your 401K and IRA, for example, life insurance payouts can supplement your savings so you can pay more into your 401k. A 40-year-old who invests $100,000 in a taxable brokerage account and never invests again could accumulate $424,000 after 25 years, assuming a hypothetical annual return of 7%.

Build A College Fund

We all know, in today’s world, college is expensive with a capital E. Especially if you have more than one child. You can use a portion or all of the death benefit towards your children’s college fund with a 529 college savings account. Earnings on 529 accounts are tax-deferred, and withdrawals are tax-free as long as they are used for qualifying higher education expenses. An initial investment of $50,000 in a 539 college savings plan could potentially double within 12 years, assuming an annual growth rate of 6%. Considering death benefits can be very large. This may be a great way to make sure your kid’s education is taken care of.

A Combination

For some people, if the death benefit is big enough, a combined approach could be a great option. You won’t have to choose one approach and go all in. For example you could use a portion of the death benefit to buy an annuity that creates a guaranteed monthly income stream for 12-15 years. At the same time you can take another portion of the payout and invest it in the stock market to let it start making you money.

Theoretically, this strategy would allow you to cover your immediate living expenses. While allowing the invested portion enough time to generate potential returns. If your portfolio generates a reasonable amount over the next 12-15 years then it could potentially generate income for another decade. Keep in mind though, that any option with investments means you have to accept a certain level of risk. There’s no guarantee the investments will do well.

Life Insurance Made EZ

Losing a loved one is difficult, and you may not know what to do with the money you will receive while you are in mourning. However, this money will provide you with the assurance that you can continue to provide for your family. Working with an agent who specializes in life insurance is the best way to find the right policy for you and your specific needs if you are looking for a policy for yourself and are unsure which policy is best.

Below is a list of the best life insurance companies in the country; each offers hassle-free service and the most affordable rates. Always check multiple sites to ensure that you have negotiating power and are aware of the benefits of each company. Ensure that a difficult time is not exacerbated by a financial burden by comparing life insurance rates today. You can always call us at 877-670-3560 if you have more questions or wish to speak with an agent directly.

What Is Graded Benefit Whole Life Insurance?

There are a whole lot of life insurance policies out there to look into. In fact, there are multiple types of whole life insurance alone, one of them being graded benefit whole life insurance. This type of policy can be good in certain circumstances. To determine if your circumstance is a good fit for graded benefit whole life insurance, you need to review the pros and cons before deciding if it is right for you and your family.

What Is Graded Benefit Whole Life Insurance?

doctor's office exam room — *Graded benefit whole life insurance does not require a medical exam.*

Graded benefit whole life insurance is a type of policy that will only be paid out in the first 2 to 3 years if the policyholder dies accidentally. These policies don’t require a medical exam or traditional underwriting. And because of this, life insurance companies that offer these policies take a significant risk when providing them. That means these types of policies will generally have higher premiums compared to other types of life insurance policies.

There is a waiting period with graded benefit whole life, typically 2 years, but you won’t lose your money if you pass away during this period. In fact, if you do pass during your waiting period, your premiums will be refunded plus interest ( typically around 10 to 20%) depending on the company.

The 2 Types Of Graded Benefit Whole Life Insurance

There are two different types of graded benefit whole life insurance policies:

Simplified issue– With this type of policy, you will have to answer medical questions to qualify. Because of this, this type of policy will usually have a higher benefit amount.
Guaranteed issue– You will not have to answer any health questions with this type of policy, and you cannot be denied or turned down due to your health. This policy will have a lower benefit amount and is typically more expensive than a simplified issue policy.

Graded Benefit Whole Life and Your Health

Different companies and policies will require different information. If you opt to get a plan that requires answers to health questions, such as a simplified issue policy, it is better to be prepared with what types of questions you can expect. You can expect to answer the following questions (although questions might vary from insurance company to insurance company):

Have you been diagnosed with or received treatment for HIV, AIDS, or AIDS Related Complex?
Have you been diagnosed with a terminal illness?
Do you have a disability that requires the use of a wheelchair?
Are you confined to a nursing home or other facility?
Have you received a diagnosis of heart disease, kidney disease, cancer, diabetes, or another serious illness in the last 24 months?
Have you had a stroke?
Do you have Alzheimer’s or any other cognitive impairments?

Is It Right For You?

Graded benefit whole life insurance is usually purchased by people with serious health problems who might get denied through traditional life insurance. If you have health conditions and are worried you will get denied life insurance, know that you do have the option of a graded benefit whole life insurance policy! Not only will you be accepted no matter what health conditions you may have, but it will provide your family with a substantial amount of financial security when you pass. Having health issues should not stop anyone from protecting their family with a life insurance policy.

If you’re not sure which policy is best for you, your best bet is to compare policies from different companies. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Life Insurance Can Protect Your Small Business

As a small business owner, you’ve worked very hard to build your business, and you want to make sure that you can keep it going for a long time, even after you are gone. You might be wondering what will happen to your business after you pass away, and how your loss will affect your family and employees. In most cases, a business will either go out of business or will be taken over by a partner when the owner passes, but in the worst-case scenario, your family could have to take on the debt carried by your business. If you don’t want any of these things to happen, life insurance is a great way to not only protect your small business but your family, as well.

What Might Happen to Your Small Business

Oftentimes business owners think that their spouse or other family members will take over the business when they are gone, but that’s very unlikely to happen. When you pass away, your family might not want to take over the company, or might not be capable of running it.

If a family member isn’t the right option, you might want to rely on a key employee to take over the business. But they might require a salary commensurate with the added demands of the job, and the funds that will be needed to keep everything going might be more than the business can handle.

In addition, there is the possibility that a competitor will try to take over your business, take away customers, or purchase equipment and inventory cheaply from your business.

Life Insurance Options For Your Business

All of the above instances will not end in a positive way for your family or business. This is why life insurance is a very important way to protect your assets and your family. You can consider:

Key person insurance – With this policy, when a key person like yourself dies, the insurance can help make up for lost sales or earnings and cover the cost of finding and training a replacement.
Buy-sell agreement funded with life insurance – This allows remaining business owners to buy the company interests of the deceased owner at a previously agreed-upon price. This will ensure that your surviving family members will be fairly and properly compensated for their share of the business.
Individual life insurance – You can also purchase a life insurance policy individually to provide your family with additional money to pay off any personal debts, and help with living expenses and future needs.

There are many great affordable life insurance options to choose from, which is why comparing plans is important.

Need Help?

Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Do Credit Scores Affect Life Insurance Premiums?

When you apply for a life insurance policy, in most cases the insurer will dive into your background, looking at things like your driving record, your medical records, and even your hobbies. They do this to determine how much of a risk you will be for them to insure you. But how in-depth do they get? For example, will they look at your credit score, and will they consider it when setting your rate? The short answer is yes, your credit history does affect your life insurance premiums. Read on to find out just how it does.

Will Insurers Check Your Credit Score?

Some insurance companies review credit scores in order to determine if you are likely to repay a loan, while others do not. This is why it is important to compare policies from different companies. Remember, though, even if an insurer does check your credit score, it will just be a tiny part of what they will consider when deciding if they should insure you and how much you should pay.

Will Your Credit Score Affect Your Premiums?

Your credit score can indeed affect the price of your life insurance policy. Your insurer wants to know your credit attributes and how financially responsible you are, and wants to make sure that you will be able to pay your monthly premiums and won’t lapse on your policy. They will look for:

Bankruptcy
Carrying large credit card balances
High percentage of credit card use
Late or missing debt payments

green check mark in a green circle — *You can still find a great affordable policy, even with bad credit!*

But don’t worry too much – you will generally only be denied a policy or have to pay a lot extra if you have filed for bankruptcy or something similar.

Can You Find a Great Policy?

Absolutely! Life insurance companies are more concerned about your health and your lifestyle than they are about your credit score. And there are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price.

The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.