Choosing a life insurance policy can be very confusing, since there are so many different options to look into. But we can help break down what you need to consider when searching for a policy! First, you’ll need to decide between the two main types of policies: whole life insurance and term life insurance. And while term life is excellent for people on a budget, there are situations when whole life is simply a better deal. So what’s the difference between the two, and is whole life right for you?
Difference Between Term & Whole Life
Both term life and whole life require you to pay a monthly premium. In return, your family will get an agreed-upon amount of money (your death benefit) when you pass away. The major difference between these types of policies lies in the length of the policy.
When you purchase term life insurance, you will be asked to choose the amount of time that your coverage will last, typically anywhere from ten to thirty years. After that amount of time, your policy will expire. If you outlive the policy, your family will not get your death benefit. And you will then have to decide whether to buy a new policy or extend your term. In both cases, your policy will likely be more expensive because you will be older and might have developed health conditions.
The possibility that your policy will end, and you will have to extend or repurchase is a major drawback of term life. With whole life insurance, though, you might pay higher premiums. But the policy will cover you for the rest of your life. Not only that, but many whole life policies have a cash value – like a savings account – attached to the policy that accrues money over time.
As we mentioned above, whole life can be more expensive than term life. But the difference in price is often not actually all that much. And again, with a whole life insurance policy, you will build a cash value account that grows over time. And the account is tax-deferred. So you can essentially use your policy as a type of bank account.
You should also consider whole life insurance over term life if:
You’re close to 50– You might think that if you’re heading towards 50, or a little older, term life is the way to go. But if you’re only around 50, you have a good chance of outliving a term life insurance policy. And then you’d have to pay an extremely high premium to get a new policy (that might have a smaller death benefit), since you will be buying/renewing your policy at a much older age.
You have children in college– If you have a child or children in college, a whole life insurance policy with added cash value is a great option. With one of these policies, you can save that money and then give it to your child for tuition.
You’ve been diagnosed with a medical condition– If you missed the opportunity to purchase a term life insurance policy when you were young and healthy, odds are that one will be very expensive if your health is no longer what it once was. In this case, it would probably be smarter to get a guaranteed issue whole life insurance policy. Rather than run the risk of not qualifying for a standard life insurance policy later on.
You have a child with special needs– Whole life is a great choice if you are a parent who has a child with special needs and an existing special needs trust. You can consider survivorship whole life insurance. Which covers both parents but only pays the death benefit after the remaining parent passes away. This is an excellent type of permanent coverage that is a great deal more affordable than coverage for both parents.
You own a business- There are a variety of types of life insurance options available to business owners. For example, you can take out a permanent cash-value life insurance policy such as an indexed universal life policy. With which you can access funds should you need liquidity in case of an emergency. Or if the key employee leaves the company.
Whole life insurance is a great choice for a lot of people. But 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. The best way to find the right life insurance policy 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.
If you’re single and have no children, you’re not alone in thinking that life insurance is not a necessity for you. But even if you don’t have anyone who financially depends on you. There are a lot of reasons why life insurance is important. Not only do situations change over time, but if you wait until you’re older to purchase a life insurance policy, it will cost more than it would if you were to purchase one right now!
Why You Need Life Insurance Even if You Don’t Have Dependents
You Might Have Dependents One day
Life is full of unknowns, including where your future will take you. Just because you don’t have any dependents now doesn’t mean you won’t later on in life. If you meet that special someone, and get married and decide to have children later in life, you will need to consider a life insurance policy. When it comes to life insurance, it’s generally best to think about the future, rather than your present situation.
You Want to Help with Your Funeral Expenses
Even though you might not have any dependents, someone in your family is going to have to be financially responsible for your death. On average, a funeral can cause around $15,000. Which is a lot of money to expect your family to take on in the event of your passing. Having a life insurance policy, even if it’s a basic one such as a final expense life insurance policy, can ensure that these expenses are covered. So no one in your family has to be financially burdened with the costs.
You’re a Family Member’s Caretaker, or Might Become One
As parents or grandparents age and potentially become ill, one of their children/grandchildren will often take on the responsibility of taking care of them. This can include cleaning the house, cooking, helping pay bills, and doing any number of household chores. If you are or might end up in this situation, and something were to happen to you, everything that you did for your parents would have to be done by a nurse. Which could cost your family money they might not have. Having a life insurance policy would provide your family members with enough money to get the care that they need.
You Have Other Potential Beneficiaries
Just because you don’t have any dependents, doesn’t mean that you don’t have possible beneficiaries. It could be anyone in your life that could benefit from a life insurance payout. Like your parents, siblings, or anyone else you choose to leave money to.
Finding the Right Plan
A life insurance policy is the right choice for everyone, no matter if you have dependents or not! But 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 beneficiaries, 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.
It’s easy to put off making plans for the end of your life, especially when you’re young. After all, thinking about your own mortality probably isn’t your idea of a good time! In fact, many young Americans don’t have or even think about life insurance unless it’s offered by their employer – but these policies are often inadequate. And what many people don’t realize is that life insurance is definitely something you want to get sooner rather than later, since when you get it will affect your rates and benefit amount. Not sure if it’s the right time for you? There are some simple signs that it is time to buy life insurance!
What Is Life Insurance?
Life insurance is essentially a contract between you and an insurance company. In exchange for premium payments, they promise to pay a lump sum to a beneficiary of your choosing at the time of your passing. This lump sum is called a death benefit. It is most often used for funeral costs or paying off a mortgage or other debts. It can also help to replace the loss of your income.
Policies are cheaper when you’re young and healthy, so getting one sooner rather than later is smart. Beyond getting cheaper premiums, if any of the situations below apply to you, it’s time to start shopping for a policy.
1. Your Income Helps Support Someone
If you earn an income that helps to support someone, you need life insurance, simple as that! And the more money you make, the more life insurance you need. As we mentioned, your job might offer you a life insurance policy, but that policy is a base level of coverage and likely won’t be enough. So how much do you really need? You should look for a policy with a death benefit of at least 6 – 10 times your annual salary. That means if your salary is $50,000, your policy should have a death benefit of around $500,000.
Think of it this way: if you’re part of a couple, you’re most likely planning your life around two incomes. You plan on paying for your mortgage, retirement, and even day-to-day expenses with each other’s incomes in mind. Imagine suddenly losing your loved one and then having to move or completely rebuild your life because you can no longer afford the life you have. That means protecting your partner with life insurance is a must.
2. You Have Kids
If you’re a parent you should already have life insurance. Ideally by the time a life insurance payout comes, your kids will be grown and leading their own lives, but it’s better safe than sorry. It generally takes two incomes to provide for kids. So a sudden loss of income can be devastating, and not just in terms of day-to-day expenses. If the worst does happen, life insurance benefits can be put into a college fund or a savings account to help pay for bigger life expenses that you’d planned to be there for.
3. You Have Debt
When you’re young, you can start racking up some hefty debts that are meant to be paid over a long period of time. You acquire these debts hoping to live a long life and to pay them off long before you’re gone, but you don’t know what the future holds. No matter when you pass away those debts still need to be paid, and they will fall to any family you’ve left behind.
Your debt balance should play a factor when you decide how much life insurance you need. Theoretically you want to leave enough of a death benefit so that your family can pay off your house and other loans, and not have to double their own debts. Getting a robust policy will keep your loved ones from having financial worries on top of handling your loss.
The Takeaway
Life insurance is about protecting your loved ones. It’s hard enough to grieve a loss, and you don’t want to add even more stress to the situation. The best way to find a life insurance policy that protects them is by speaking to an agent. Below we have a list of the top life insurance companies in the nation. All of which offer hassle-free assistance and competitive rates. Shopping around is your best bet, so always check multiple sites to make sure you get the best rate possible. Help protect and provide for your family by checking rates today.
One million dollars sounds like a lot of money, right? But in terms of a life insurance policy, it really isn’t a crazy amount when you think about all the debt, like mortgage and car payments, as well as other monthly and daily expenses, that your family would be left with if you were to pass away. Money will go quickly when paying off these debts, which is why it’s important to look into million-dollar policies for your family.
Think about it this way: if you’re married and bought a new home that costs $400,000, and you were to pass away, how would your spouse be able to afford your mortgage payments without your income? Having a large policy, such as a million dollar policy, will give you peace of mind knowing that your children and partner would be able to afford these mortgage payments, while also having enough money to help pay for other expenses your income would have covered. This type of large policy would mean that your family would be financially secure if the unexpected were to happen.
While million dollar policies are a good idea for a lot of people, you should know that there are some requirements you must meet in order to get one. So what can you do to qualify for one? Try adopting the following 4 healthy habits that will help you qualify for a million dollar policy.
1. Quit Smoking
Cigarette smoking is linked to 80 to 90% of cases of lung cancer, which is a red flag for insurance companies.
One of the first questions that most life insurance companies will ask when you apply for a policy is if you use tobacco products. This is because insurers always try to assess what kind of risk an applicant will be at before providing them with a policy. And because cigarette smoking is linked to 80 to 90% of cases of lung cancer, insurance companies see this as a huge red flag. So if you are a smoker, consider quitting and then waiting before you reapply for a life insurance policy. If you do this, you might qualify for lower premiums on a million-dollar life insurance policy.
2. Lose Weight
Your weight is another thing that insurers take into consideration when determining both your premiums and how much coverage you qualify for. Their view is that if you are overweight or are considered obese, you will be more likely to develop health conditions, such as diabetes, high cholesterol, heart disease, and stroke. So losing weight will not only improve your health overall, it will also make you more likely to be able to purchase a million-dollar life insurance policy at a reasonable price.
3. Eat Healthy & Exercise
Eating healthy and exercising are important parts of living a healthy life. Choosing to eat better and getting at least 150 minutes of moderate exercise a week can help you lower your cholesterol, maintain a healthy weight, and reduce the risk of heart issues. Not only that, but these habits will make you look better to life insurance companies, and could help you get your million dollar policy.
4. Avoid a High-Risk Lifestyle
If you are into scuba diving, jumping out of planes, or any other high-risk activities, this is generally a red flag for life insurance companies. And not only is your lifestyle important in determining your eligibility, but so is your profession. If you have a high-risk job such as a logger, you will also be considered a bigger risk for a life insurance company to take on. Consider avoiding high-risk activities that will result in higher premiums, as well as a lower benefit amount.
How To Find The Best Policy
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.
In many cases, people think that only the breadwinner of a family needs to have a life insurance policy, since they bring in most of the family’s income, and it is their income that would need to be replaced. But what about families in which both partners make an equal income? Do both spouses need life insurance, and if so, which policy is best for dual-income families?
Why Dual-Income Families Should Have Life Insurance
If you and your partner both have an income, you both equally contribute to paying the bills and taking care of the debts that accumulate in your household. Your family is accustomed to living with both incomes, and losing one could seriously impact your family’s financial stability. When both income-providing partners have life insurance, this can help pay for funeral costs and offset the lost income from either spouse.
Whether you are the breadwinner of the family or not, it’s important to have a life insurance policy for:
Financial stability- A policy will ensure that your spouse or children will not have to deal with outstanding debt or bills, or with worrying about mortgage payments on their own without your income to balance it out.
Quality of life- Even if your spouse has an income, they might have to work more to maintain your family’s current lifestyle. They will be dealing with emotional and psychological stress alongside added bills such as childcare and more, which can add up.
What Type Of Life Insurance Should You Get?
When considering what type of policy both of you should get, one of the most important things to consider is whether you should get one policy together or separate policies. Consider the following options:
You do have the option to get separate policies, but you also have the option to get a policy that covers two people, known as joint life insurance. Joint life insurance is a type of universal life insurance, meaning that it is permanent life insurance, and so will remain in effect for your whole life. Depending on how your policy is structured, it might build cash value that grows, tax-deferred, over the life of the policy.
If both you and your partner need the same level of coverage, it may be less expensive to buy a single joint policy with the face value (benefit amount) you’re looking for, compared to two individual policies with the same face value. But you should be aware that, depending on the type of policy, once one policy holder passes away, and a claim is paid, the surviving partner will have to get a new policy to cover them.
Individual Life Insurance
Individual life insurance can be better suited to a couple that has a lot of financial needs, such as providing protection for young children or covering ongoing lifestyle expenses for the family. Another benefit is that individual insurance allows coverage to continue for surviving spouses, even if one of the spouses passes away and a claim is paid.
Individual policies are also a better option if you want coverage that is customized for each of you, such as different benefit amounts or terms of coverage. But it is important to note that individual life insurance policies will have slightly higher premiums than a joint policy.
How Much Coverage Should You Get?
Once you’ve thought about what type of policy you and your spouse should get, you’ll have to think about the amount of coverage you should have. When looking for a policy that will give your family enough coverage, you should make sure the benefit amount is at least 10 times your annual income. In some cases, it might be appropriate to add an extra 15 to 20% just in case there are any extra death-related expenses and financial obligations that your spouse would have to take on, such as a mortgage, car payments, utilities, childcare, and more.
Need Help?
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.
You might have a lot of preconceived notions about what it takes to get a life insurance policy. You might even be put off by how frustrating or difficult you think the whole process will be. But the expectations that people have when looking for a life insurance policy are not necessarily the reality. Knowing what to expect will make the process much easier, so let’s look at some of the expectations about life insurance that aren’t necessarily the way it really is.
“I’ll need a medical exam or a blood test to get life insurance.”
The reality is that, yes, a lot of life insurance companies will ask their applicants to undergo a medical exam, including providing lab work. However, not all life insurance companies, and not all policies, will require a medical exam or blood test. Certain policies will only require you to answer a few quick questions regarding your health status, while other policies, such as guaranteed issue policies, will not require any medical exam or answers to health-related questions.
“I’ll have to go through an agent, who’ll try to upsell me.”
This is also not true, because the reality is that you can search for policies from different companies on your own. There’s no need to work with an agent during the research and application process unless you want to. Whatever you choose, it’s very important to compare policies, because this will give you the upper hand when finding the right policy at the right price.
“The application process is time-consuming.”
Yes, searching for a policy can be time-consuming, but the application process is not. You can complete a questionnaire and get coverage the same day, or at least within a week after applying for a policy.
“Life insurance is too expensive and complicated.”
Many people think that life insurance policies are a luxury, and only people who have a lot of money will purchase them. In fact, more than half of all Americans think that the cost of life insurance will be three times what the actual cost is. The reality is that life insurance policies can be as cheap as $30 a month, depending on your health. You can tailor your policy to fit your budget and needs, so there’s no need for them to be expensive or complicated.
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.
