life insurance help Archives - Page 19 of 22

Questions To Ask Before Buying Life insurance

When it comes to life insurance, there are two things that you can be sure of: you need it in order to ensure your family’s financial stability in the future, and you have a lot of decisions to make when choosing a policy. It takes a lot of thought – and it should: it’s a big, important commitment. So if you’re unsure how to narrow down your choices, and how to decide which policy is right for you, you should first ask yourself the following questions; having the answers in your mind can make the process of comparing life insurance policies and buying the right plan much easier.

How Much Coverage Do I Want?

suitcase full of money stacks — *Before buying life insurance, you will need to determine how much money will be enough for your family when you are gone.*

When determining how much coverage you will need, you have to ask yourself who depends on you and what kinds of debts you have. Typically, the death benefit on your policy should equal up to 10 times your current annual income, but it is important that you take the time to write down all of your current financial obligations, such as your mortgage, childcare expenses, car payments, and any other future obligations. Will you want to leave an inheritance when you pass away? Help your children pay for college? Buy a house? All of these things will need to be taken into account when choosing your benefit amount, and the best way to calculate your life insurance needs is to get help from a trained agent who can help you determine how much coverage you will need.

How Long Should I Have Coverage For?

Once you choose the amount of coverage you need, you will have two basic types of life insurance coverage options to choose from: term and permanent.

The difference between the two is that a term life insurance policy will cover you for a specific amount of time (typically 10, 20, or 30 years), while a permanent life insurance policy will cover you for your whole life. The advantage to term life insurance? It’s cheaper, and can be a great, affordable option if you want to provide income for your family to cover short-term debts and needs. For example, do you have a 30-year mortgage that your spouse would have difficulty paying off if you die? Then a 30-year term life insurance policy is perfect to cover those 30 years until the mortgage is paid off.

If you are unsure if a term life insurance plan will provide enough coverage, look into a permanent life insurance policy, which would allow your family to live comfortably, even after your debts are paid. These policies have a cash value growth potential and can replace income, assist with your retirement planning, and more. Comparing all of your different options will give you a better understanding of which policy is better for you and your family, and how much you can afford.

How Healthy Am I?

african american woman stretching touching her foot with one hand and the other hand backwards in the air — *Ask yourself how healthy you are to get a better understanding of how much premiums will be; the healthier you are, the cheaper it will be.*

This question is important in determining which type of policy is better for you. Life insurance rates are based on multiple factors, and your health history is one of them: the healthier you are, the cheaper your premiums will be, and vice versa. But even if you do have health conditions, there is no need to worry! With a guaranteed issue life insurance policy, such as simplified issue life insurance, you will not be turned down because of your health; you will not have to answer medical questions, or undergo a medical exam.

Will Premiums Change Over Time?

This depends on which kind of coverage you go with. With term life insurance, your premiums start out lower than with permanent coverage and stay at a fixed rate for the term, but if you choose to extend your policy, your rates will go up. With whole life insurance, as long as you don’t let your policy lapse, your premiums are guaranteed not to increase for the rest of your life. If you choose to go with a universal life insurance policy, your premiums will increase with age, but if you have accumulated cash value, this can cover the increases. These are all things you will have to consider and compare when researching life insurance policies.

What Happens If I Don’t Die During A Policy’s Term?

If you opt to get a term life insurance policy, there is a good chance that you will survive the specific term, and if you do not pass away during the term, no one receives the death benefit. You do have the option to keep your policy and convert it into a whole life insurance policy, but you need to be aware that your rates could go up, especially if you develop health conditions. This is why it is important to consider from the start if a term life insurance policy is your best option, or if a permanent life insurance policy is better for your circumstances.

Choosing the right life insurance policy is necessary in order to ensure that your family gets the benefits they need. It might seem complicated and frustrating to find the right one, but it can be done, with some help. 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.

Before Getting Married, Discuss Finances & Life Insurance!

Congrats on your engagement! You’re probably busy planning and making arrangements for the big day, but during this fun (and stressful!) time, don’t forget that there is something very important you need to discuss before getting married and sharing your life together: finances. Before making the commitment to forever, you should be clear about what debts and assets you have; once you’ve done this, there’s one more very important thing to talk about, and that’s life insurance. We get it, it’s not the most romantic subject to talk about before tying the knot, but you definitely need to discuss how much life insurance you’ll need to ensure your family’s future financial stability. To make things easier, consider the following so you can figure out what kind of life insurance you’ll both need.

Debts You’re Bringing To The Marriage

illustration of a woman holding a large bag with a money symbol on her shoulders — *Before getting married, it is important to discuss any debts, and other finances you have with your fiancé.*

You’d probably agree that being open and honest with your partner is very important, right? Well, that includes being open with your soon-to-be spouse about any key financial information; in fact, roughly 42% of couples say transparency about finances is key to a healthy relationship. This is especially true when it comes to any debts that you will be bringing into the marriage, including credit card debt, student loans, or car payments.

If you both have an understanding of what debt you’ll be taking on before getting into the marriage, you’ll be better equipped to come up with a plan to tackle that debt; you’ll also know how much life insurance coverage you’ll both need to keep you financially protected in the future. Remember, if one of you were to pass away, the other could be responsible for some of those debts, so take them into consideration when choosing your policy. You will want to make sure that in the event of your passing, you can still help cover these debts and provide enough for other expenses.

Are You Planning On Having Children?

Do you want to have children someday? Does your partner? If the answer is yes, a lot of other questions will follow, like: Will you be buying a house one day as your family grows? Would you be able to continue taking care of your children on your own if your spouse passed away? Do you plan on helping your children with college expenses? You will need to discuss these questions and figure out how much life insurance coverage will be enough to cover any or all of the scenarios raised above.

Evaluate Your Disability Insurance

blue and white disability sign — *If your job does not cover disability in case you get injured and unable to work, you can get a disability rider with life insurance.*

In the event that you or your spouse got hurt or disabled, would the disability insurance offered through your job cover your bills? Odds are it would not; in fact, more than half of working Americans could barely afford their bills past the first month of being unable to work. You will both want to be financially protected if the unexpected happens and you are no longer able to provide an income; life insurance disability riders can help you or your spouse keep paying the bills by covering any lost income.

What Kind Of Life Insurance Policy Should You Get?

You have options when choosing a life insurance policy/policies to cover your new family. One thing to consider is whether you plan on having your own life insurance policies or a joint life insurance policy; joint life insurance policies cover both of you, and are generally less expensive than purchasing two policies. If you decide on a joint policy, you have two options: a first-to-die policy, which provides benefits to your spouse after one of you dies, and a second-to-die policy, which pays out benefits to your family after you both have passed. Be aware that after the first-to-die policy’s benefits are paid out, the policy terminates, meaning the surviving spouse would have to get additional coverage if they want to provide benefits for the rest of your family after they pass.

Individual life insurance policies might be a better fit if you want guaranteed protection for each individual; you might also be able to get higher payout benefits when getting your own life insurance policies. The best way to determine which is the best route is to go over your finances and compare plans. You might find that a term life policy is better for your needs, while your spouse might decide on a permanent life policy. Whatever you both choose, it is important to have life insurance for the unexpected, so that neither of you is left struggling.

Talking about your finances before getting married might not seem fun when you are in love and enjoying the good times, but it is necessary, and avoiding the subject will be detrimental to your relationship in the long run. You need to know how much debt you each have and what your future plans are for taking on more debt, so you can figure out exactly how much life insurance coverage you’ll need to protect your family now and in the future. After having the talk, the next step is determining which life insurance policy will best fit your finances and needs; the best way to do this 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.

Why Stay-At-Home Parents Need Life Insurance Too

As a stay-at-home parent, you don’t always get the recognition you deserve, even though you’ve got one of the toughest jobs around. Not only are you raising children, which is not easy, but you are often the one keeping up with the finances of the household, doing the many loads of laundry, running errands all day to make sure the fridge is stocked, getting your children to and from practice, and on and on. Considering all of this, it doesn’t make sense for only the breadwinner of the household to have life insurance; they might bring home the bacon, but there is so much more that a stay-at-home parent does that contributes to the household. How would your family get by if you were gone?

Don’t sell yourself short or just how much you contribute everyday within your household. In the event of your passing, your spouse or partner will have to take on more roles than before, which can cost them more than expected. They will be grieving your loss, but you can make the process a little easier by continuing to contribute to the household with a life insurance policy. It can help:

Keep The Household Running

illustration of a person carrying a bucket with cleaning supplies and a mop — *You not only clean the house, but you do laundry, cook, shop and finances, which your partner will have to take over when you are gone.*

You do not get enough credit for all the work that you do around the house, which, on top of taking care of the kids, is a full-time job. If you were to pass, your spouse would need help with the laundry, house cleaning, shopping, cooking, and childcare, since they would most likely be unable to keep up with all of that while working a full-time job. Outsourcing all of this can all be very expensive; in fact, consider this: if you were to pay stay-at-home parents for all the work they do, their annual salary would be roughly $160,000! You contribute a lot more than you think! A life insurance policy will help your spouse cover all of these new expenses and roles, ensuring that they have help even when you’re gone.

Daycare Costs

Since you are a stay-at-home parent, you are the primary caregiver for your children, if you passed, your spouse would have no choice but to put the children in daycare when they return to work. Daycare costs a little over $11,000 a year per child, which is an expense that your spouse might not be financially ready for. You want your children and partner to be able to continue their daily routines and grow, even when you’re gone. Having a life insurance policy ensures your partner can provide top notch child care for your children while also keeping their career on track.

Provide for Your Children When You’re Gone

Are you planning on helping your kids financially when they go to college? Or would you like to help them put some money down for a new house one day? Are you planning on getting a job and making a steady income once they are in school full-time? No one knows what the future holds, but with a life insurance policy, you would still be able to provide all of this financial support, even if you were no longer around.

the word debt with a green eraser getting rid of the word. — *Life insurance can help pay off some of your debts that you share with your spouse.*

Pay Off Debts

If you have any loans that your partner co-signed, they will have to shoulder the burden of paying it back. Having life insurance would take the stress off them and provide them with help paying back any of your debts.

Cover Funeral Expenses

Funerals are not cheap. Most people do not have extra money tucked away for an unexpected expense like this, but you can provide that for your family when the time comes. With a final expense life insurance policy, you can make sure your family has money for funeral costs as well as any other expenses, such as medical bills, and more.

Give Loved Ones Peace Of Mind

A life insurance policy will not only give your family tax-free benefits in the event of your passing, but it will also make an incredibly difficult time much easier on your partner and family. Your family losing a parent and partner is tough; they will be grieving, and worrying about future bills and expenses is the last thing they need while finding a way to cope.

What Kind Of Life Insurance To Get?

When choosing a life insurance policy for your family, it all comes down to your needs and what will work best for them. Do you want a life insurance policy that has cash value you can withdraw and use during your lifetime? Then a permanent or whole life insurance policy is a great option. Do you want life insurance that will remain in effect for your whole life or just for a certain amount of time? If you want a policy that will remain in effect just while you’re paying off your mortgage, for example, a term life insurance policy is perfect. The possibilities are endless, but the best way to determine which is best for you and your family is by comparing plans from multiple companies in your area.

Being a stay-at-home parent is a wonderful – and tough – job. And just because you don’t bring home any actual income, doesn’t mean that the work you do doesn’t play a large role in supporting your household financially. That means that your job is just as important as that of the breadwinner of the family, and so it’s just as important that you have life insurance. When deciding on a policy, consider using online tools to see what’s available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. 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.

What Is A Life Insurance Disability Rider?

Needing to take time off of work for injury or disability is more common than you might think. In fact, around 30% of Americans are forced to take some kind of disability leave during their working life, which can be a huge financial strain on their family. But did you know that your life insurance policy can also protect your family and finances in the event that you become disabled and are unable to work? Standard life insurance policies don’t cover disability, but many people are unaware that you can add what is known as a disability rider to a policy. One of these riders will give you added peace of mind, but there are few things that you should know about them.

What Is A Rider?

A standard life insurance policy will not cover all eventualities, but there is a way to extend your policy or to make your terms and conditions more flexible: you can add what is known as a rider to your policy. These optional additions cost extra, but give you benefits that fill the gaps of standard life insurance, and include things like extra coverage for accidental death or coverage for your income so your family doesn’t have to struggle in the event of your death.

What Is A Disability Rider?

blue handicapped sign — *Disability riders can help provide extra income when you are no longer able to work.*

An injury or disability can mean an extended period of time during which you are unable to work, as well as worries about how to take care of your family and finances. In order to protect you and your family in the event that this happens to you, you can choose to purchase a disability rider along with your life insurance policy. There are multiple types that you can choose from, or you can purchase multiple riders and combine them. Some of the most common ones include:

Disability income rider – Essentially, this type of rider allows your life insurance policy to also function as disability insurance: you will be provided with a monthly stipend in the event that you can no longer work. Many insurance companies will pay out 1% of the coverage amount of the insurance policy to help replace your income.
Waiver of Premium rider – Having this type of rider means you will not have to pay your life insurance premiums after you’ve been disabled and unable to work for 6 months (some insurance companies will also reimburse you for payments made during that 6-month period). With this rider, you’ll be able to focus on your healthcare expenses, and won’t have to worry about losing your life insurance coverage.
Presumptive total disability– If you have one of these riders, your insurance company will immediately pay out your full benefits if you lose sight in both eyes, your hearing, your speech, or the use of at least two limbs, whether you are working or not. With this rider, there is no period of time that you have to be disabled before you begin receiving your benefits.

If you want to add a disability rider to a life insurance policy, you should know:

You cannot purchase a disability rider if you are over the age of 65.
You cannot purchase a disability rider if you have pre-existing conditions.
There is a waiting period of up to 6 months before the waiver kicks in.

Do You Need A Disability Rider?

If you are deciding whether a disability rider is right for you, you should consider what kind of job you have, and how much you and your family rely on your income. For example, if you have a high-risk job where there is a higher likelihood of injury, a disability rider will be very beneficial to you, and will give you peace of mind knowing that you’ll be prepared in the face of the unexpected. In addition, one of these riders could be perfect for you if you are the sole breadwinner of your family.

When looking into a disability rider, you’ll find that they differ between life insurance companies: some insurance companies have different definitions of disability, as well as different coverage options for these riders. Before purchasing a life insurance policy with a disability rider, you should compare plans from different companies to find the one that suits you and your family’s needs best. To do this, consider using online tools, or speaking with an agent. We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. 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.

Retiring? Don’t Cancel Your Life Insurance Policy!

You’ve worked your whole life to save money to use for your retirement, and to take care of your loved ones. Now that your retirement is finally approaching, you might be wondering: is it enough? In addition to your savings, do you have a pension or retirement benefits through your former employer, or will you be relying on Social Security – and will it be enough to support your spouse if you are no longer able to? What about if you or your spouse needs long-term care? And will there be any money left for your children or grandchildren? If you’re unsure whether you’ll have enough money for all of these scenarios, a life insurance policy could be the answer. So, if you already have one, don’t cancel it now; if you don’t, you can still find an affordable policy – having one is just as important now as it was when your family was young, and here’s why!

Provides Additional Income

If you are one of the lucky ones who will be getting monthly retirement benefits from your employer, you might think that both you and your spouse will be able to live on that money for the rest of your lives, whoever passes away first. But that is not necessarily the case: depending on the type of monthly payout that you chose, your spouse might not continue receiving your retirement income after you die. If you picked the option of a monthly payout based on your life expectancy instead of a “joint and survivor” benefit option, your benefits will only last for as long as you are alive – and most people do not choose the “joint and survivor” option, because it usually means a smaller monthly payout. Life insurance can replace that monthly income, which will help your spouse with the expenses that they relied on your income for.

Covers Debts

Some of your debts do not disappear when you die, especially if your spouse is a co-signer of the debt. If you’re still paying off your house, car, college tuition, or credit card bills, a life insurance policy will ensure that these debts get paid without your spouse or family struggling. A policy will also ensure that your family can afford your funeral expenses, which will cost, on average, $10,000.

Leave A Legacy

Hopefully you’ve got a great pension or retirement plan that is allowing you and your spouse to pay the bills, and still have money to travel and enjoy your retirement. But what about your children and grandchildren after you pass away? With a life insurance policy, you can leave a legacy for your family when you pass.

Cover Your Long-Term Care

older man pushing an older woman in a wheelchair — *Life insurance can help cover your long-term care, if you add specific riders to your policy.*

Life expectancy is rising, and living longer means you or your spouse might end up needing assistance or long-term care at some point in the future. If you have retirement benefits, they can help pay for your long-term care needs, but what about those for your spouse? There are life insurance riders that you can add onto a policy to help both of you with long-term care in your retirement years. Some of these riders include:

Long-term care rider – Helps with expenses including nursing fees and assisted living costs.
Accelerated death benefit rider – Pays out a portion of your death benefit while you are alive if you are being treated for a terminal illness.
Critical illness benefit rider – Provides early access to benefits for treatment of certain illnesses.

Supplementing your retirement benefits with life insurance will help you and your spouse have peace of mind knowing you’ll be covered if you need extra care.

Other Advantages Of Life Insurance

Aside from helping your spouse and loved ones when you are gone, there are other advantages to supplementing your retirement benefits with a life insurance policy. With certain policies you can:

Build up cash value on a tax-deferred basis
Pay for premiums with your cash value
Borrow money from the cash value tax-deferred
Receive tax benefits for estates and trusts for your family

What Kind Of Policy Should You Get?

There are many life insurance policies to choose from; choosing the right one for you depends on your situation, how much coverage you want, and your budget. Some policies to look into include:

A permanent life insurance policy, such as whole life insurance, which offers coverage that will last your whole life, and will accumulate cash over time.
A term life insurance policy, which is cheaper than permanent life insurance, but only covers you for a specific amount of time (10, 20, 30 years). It can be converted into a permanent life insurance policy when the policy ends, but you might have to pay more for the policy if you renew it.
Guaranteed universal life insurance, which is a hybrid of term and permanent life insurance.
Joint life insurance, which will provide your spouse with a death benefit if you choose a first-to-die policy, or your family if you choose a second-to-die policy.
Final expense life insurance, which will provide benefits for the cost of a funeral and any debts you leave behind. The death benefit amount can be anywhere from $5,000 to $25,000.

These are just some of the different types of life insurance policies you can choose from; you should be aware of all of your options before making a decision. The best way to choose a plan that will most benefit you and your family is by working with an agent and comparing plans. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Your retirement benefits will only go so far; by supplementing them with a life insurance policy, you can make sure that you will continue to provide for your loved ones even when you are gone, or that your long-term care needs are met. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Understanding Your Life Insurance Policy

After you’ve made the decision to purchase a life insurance policy to protect your family’s financial future, the next step is actually making sure you understand everything that’s in the policy you’re planning to buy. To do this, you should sit down and read through it so you are clear on your benefits, your obligations, and the ins and outs of how the policy works. Life insurance can be quite complex, and even if your insurance agent explained your chosen policy to you thoroughly, you should still read it thoroughly to make sure everything in it is correct, and that it is the right policy for you. Below are some tips that will make it easier to review and understand your life insurance policy.

Go Over The Declaration Page

papers with graph and writing — *Your declaration page and illustration will show all the basics of your life insurance policy.*

The first few pages of your policy include a declaration page, which contains your basic information, such as:

Personal information
Policy type
Policy dates
Policy number
Your risk class
Any riders you added
Beneficiary information
The amount your loved ones will receive after your death
Exclusions

Look At the Policy Illustration

Life insurance policies will provide you with an illustration, which is a table that shows how your policy will perform at certain interest rates, including how your death benefit, cash value, and premiums can change over time. Look over this information to make sure it is what you talked about or agreed to when purchasing the policy.

gavel and balancing scales — *Review the policy and be aware of your rights to cancel the policy, and whether you can make other changes at any time.*

Review Your Rights

Life insurance policies have a trial period, often referred to as the “free-look period” or “right to return,” which gives you a certain number of days, generally 10-30, to cancel the policy without penalty. This means that, if at any point you feel like this plan is not a good fit for you, you have the option to cancel it and find another policy; make sure you know how long you have to decide.

It is also important to know whether you can change your beneficiary at any time, in case your situation changes, as well as whether you have a grace period for late payments, or if your policy will lapse immediately.

Check Length Of Coverage

Different policies offer different options in terms of how long you will have coverage, so you need to review, calculate, and make sure you will be covered for the right amount of time. If you have chosen term life insurance, you will only be covered for a set period of time, while permanent life insurance will provide coverage for your entire life.

Review Your Death Benefit

Make sure the death benefit is the amount you asked for, and is enough to keep your family financially stable after you are gone. Check how your death benefit is calculated: do you have a guaranteed death benefit (which you get with a term life insurance policy), or can your death benefit change, which can happen with permanent life insurance? Different types of permanent life insurance policies calculate death benefits in different ways:

Whole life provides a guaranteed death benefit for a set premium.
Variable and universal life insurance policies will invest the money you pay in premiums so the death benefit could change based on investment performance.
Universal life insurance allows for adjustable premium payments, but the amount of your death benefit can also change.

Go Over Beneficiary Information and Settlement Options

silhouette of people holding hands with a child in the middle and money bills as the background. — *Make sure the death benefit is enough coverage and that the beneficiary is listed correctly.*

Your policy will allow you to choose two types of beneficiaries, so when reviewing check to make sure this information is correct. The two types of beneficiaries are:

Primary, who will receive your death benefits after you die
Secondary, who will receive the death benefit if the primary beneficiary dies before you do

You should know what the claims process will look like for your beneficiaries, as well as the settlement options for your policy, or how your money will be distributed. In most cases your beneficiaries will receive their payout in one lump sum, but there are alternative settlement options that include different types of annuities, so check what your plan offers.

Look For Riders & Exclusions

If you want to add extra coverage for certain situations, such as if you become disabled while working, make sure to ask that this be added into your policy – you can do this by requesting what are known as “riders.” In addition, check if your policy has any exclusions, or risks that the insurer will not cover, which can limit the distribution of your death benefit. For example, most policies will not pay a death benefit if you commit suicide or die from a drug overdose due to recreational drug use.

When purchasing a life insurance policy, you should always review it thoroughly before you buy, after you buy, and every year that the policy is in effect, so you can make sure that it continues to suit your needs. Life changes and you might need to change your policy, as well – whether it’s your coverage or beneficiary, or whether you need a new life insurance policy altogether. If you need help reviewing your policy, it’s in your best interest to speak to your local agent; if you need help deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. 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.