life insurance policies Archives - Page 8 of 8

Final Expense VS Life Insurance

Most people have lots of plans for their life, but one thing people don’t often plan for is their funeral and the cost of their final expenses. While these aren’t the most pleasant plans to make, you should at least be prepared financially for when the time comes, and the best way to do that is by purchasing a life insurance policy. You can choose a final expense insurance policy, which is a type of whole life insurance that provides coverage for your end-of-life expenses, or you can purchase a policy that will provide coverage for more than just your final expenses. For example, if you want to leave behind a substantial amount to cover larger expenses, or possibly leave an inheritance in addition to simply covering your funeral expenses, you might want to look into more traditional life insurance. To figure out what kind of life insurance you need, you should compare the different types of policies, and take into consideration your current and future expenses.

Final Expense Coverage

The average funeral costs $10,000; you can choose to purchase a life insurance policy that will specifically cover these expenses, and will help relieve some of the stress and pain of a difficult time for your family. This type of policy, called final expense insurance, or burial insurance, covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and as long as you pay your premiums, your policy will continue until the day you pass away. The cost of this type of life insurance policy will depend on your health and age when you purchase the policy.

Life Insurance Coverage

If you are looking for more traditional life insurance coverage, there are several types of policies to choose from, including term life and whole life. The difference between the two is that term life insurance policies will cover you for a specific amount of time (or term), usually 10, 20, or 30 years, while whole life plans will cover you for your entire life. Term life is ideal if you want to provide coverage for a major but temporary expense, such as a 30-year mortgage, while whole life is better if you’re ok with paying a little more to build cash value and not have to worry about your coverage ending. Either of these policies, though, will ensure financial stability for your family after your passing.

A term or whole life insurance policy will provide your loved ones with one lump sum, or a monthly annuity to your family after your passing, and offer more coverage than final expense insurance – typically anywhere from $250,000 to $1,000,000, or more!

white drawing of a person with 3 arrows pointing in different directions — *When deciding which plan is best for your family’s needs, it is best to compare plans from different companies.*

One thing to be aware of with more traditional life insurance policies is that, unlike with final expense, you will have to undergo a medical exam before you are approved so that the insurance provider can evaluate your risk. If you are older and/or have certain health conditions, you will pay more for monthly premiums than those who are younger and healthier.

Deciding Which Plan Is Best

Final expense life is a great option for those who are older or are in poorer health, and who don’t have or can’t get a traditional life insurance policy. Having this type of policy will give your family some kind of financial stability, at least for the unexpected expenses following your death, but it is important to note that final expense insurance only covers short-term expenses and does not provide anything more. If you want to provide more money to your family to replace your income, or to cover large expenses like a mortgage or college tuition, you should look into a different kind of life insurance policy. The best thing to do is to assess your current expenses, as well as future expenses, to figure out which plan is best for your family, as well as how much coverage you will need.

Purchasing life insurance coverage for your family is a responsible choice, and an important decision. While the thought of dying and not being with your family is difficult, imagine the suffering they will be going through – the last thing you want is for them to suffer financially, as well. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence.

If you’re not sure where to begin looking for a policy, consider using online tools, or speaking with an agent. The right policy for you is out there! 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.

5 Signs You Need Increase Your Life Insurance Coverage

Having a life insurance policy is a great first step towards protecting your family’s long-term financial security, but your policy is not something you should buy and then forget about. If you’ve had your policy for a while, it might be time to revisit it: it might no longer be right for your family’s needs, and you might need to increase your coverage to ensure that your family can live comfortably when you are gone. Remember, as your life changes, so will your responsibilities, so if you have experienced any of these following five life events, you should look into upgrading your policy.

1. You’re Growing Your Family

womans hands cresting a heart over her pregnant stomach — *If you are growing your family, it’s important to take that into consideration, and increase coverage for your children’s future.*

When you get married, you make a commitment to take care of your spouse, and life insurance is a great way to make sure you can continue to take care of them and support them even after you are gone. And if you choose to grow your family, you not only add a little bundle of joy to your lives, but you also add a lot of extra expense! According to the US Department of Agriculture, it costs $233,610 to raise a child to the age of 17, and that does not include the cost of college if you choose to help your children out with tuition. If you have recently added to your family, it’s time to increase your life insurance coverage, so you can be sure that all of these expenses will be taken care of if anything happens to you.

2. You Got A Raise

The majority of people purchase life insurance in order to replace the income that their household will lose if they pass away. That means if your pay increases, you should also increase your life insurance coverage, because your current policy will probably not be enough to cover your new income.

3. You’ve Bought A Home

Anytime you increase your financial commitments, you should look at your life insurance policy and consider whether the coverage will be enough in the long run. Purchasing a new home is a huge financial commitment, and the mortgage payments could be too much for your spouse and family to keep up with in the event of your passing, so you might want to add a term life insurance policy, which will provide coverage for the duration of your mortgage or any other long term financial commitments you have.

4. You’re Planning Your Estate

As you get older, you might choose to write a will or begin estate planning so you can leave an inheritance for your family, and you should absolutely include life insurance in these plans. You need to be aware that any inheritance you leave your family will be taxed, and might also need to go towards other expenses, so you will need to increase your life insurance coverage to make sure your family gets what you want them to get, even after the estate taxes and other expenses are paid.

woman and man with walking sticks in a house silhouette — *If your health takes a turn for the worst, and you need long-term care, you will need to increase your coverage to accommodate that.*

5. Your Health Status Has Changed

If you or a family member has been diagnosed with an illness or condition that might require long-term care, it might be time to think about increasing your life insurance coverage. This will ensure that your medical bills or any future medical treatments for your loved one will be covered when you pass away.

They say the only constant in life is change, and that’s definitely true: you might add to your family or move up in your career, your children will grow, and your health might change; one thing that you can be sure of is that your financial responsibilities will increase every time your life changes. This means that it’s important to periodically review your life insurance policy to ensure that your loved ones’ financial stability will not be put in jeopardy in the future.

To make sure you have enough coverage, you can add riders to your policy for additional coverage, or you can search for a new life insurance policy – you might find that you can get one that is better and more affordable. If you need help reviewing your policy or 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.

How Long Does It Take To Get Approved For Life Insurance?

Purchasing a life insurance policy is a process. You’ll need to research and compare policies to find the right one for your needs, and once you narrow down your choices, you’ll need to consider how long it will take you to get approved for the policy. Depending on which type of life insurance policy you get, you can get approved in anywhere from a couple of days to a few weeks, or even months!

The Underwriting Process

After you choose an insurance company to work with, you will have to fill out an application to be approved for your policy (unless you have chosen a life insurance policy that guarantees approval). Expect to answer questions about your lifestyle, where you work, and the activities you regularly engage in. Once your application is complete, the insurance company will review it and decide if they will move forward with the application. Next, you will have an interview during which a representative will ask you some medical questions, then schedule a medical exam if all goes well with the questionnaire. After you’ve gone through the exam, it can take up to 4 weeks for the underwriter to get the results; once that happens, the insurance company will begin the final review process.

Varying Approval Times

Depending on the type of insurance policy you’re applying for, you can expect to get approval in anywhere from a couple of days to a couple of months. If you want to get covered quickly, a no medical exam life insurance policy is a good option, but these policies are usually limited to $1,000,000 or less in coverage. If you want a policy with more coverage, choosing a life insurance policy with a medical exam is the way to go, but you will need to wait longer for your policy to go into effect. Here is a break down of the different policies, and what you can expect as far as approval times go:

Guaranteed Issue– You can get approved for one of these policies regardless of your health status, so they are perfect for people with health conditions. You will not be required to undergo a medical exam for a guaranteed issue life insurance policy, which means it can take as little as a few minutes to a few weeks to get approved.
Simplified Issue– This is another type of no medical exam life insurance policy, but you will have to answer some medical questions. The approval process usually takes less than a week.
Term & Whole Life Insurance– These two types of policies have a more detailed underwriting process that considers your health history, as well as requires a medical exam and other background checks, so approval takes longer than for no medical exam policies. The approval process can take a week, 2-4 weeks, or sometimes as long as 6-8 weeks. If you have specific health conditions, the underwriters might have to go back and forth with your doctor until they receive all your information and assess your risk.

What Can Slow Down The Process?

stacks of hundred dollar bills — *The larger amount of coverage you want, the longer it might take to get approved.*

There are some factors that can slow down the underwriting process, which in turn will slow down approval times. These factors are:

The company you choose

Additional health conditions

Coverage amount– The more coverage you apply for, the longer it can take to get approved.
Your age– The older you are, the more health issues you could potentially have, and the more of a risk you are to insure, so the underwriter might take extra time to review your health records.

Deciding on which kind of life insurance policy you should purchase depends on how much coverage you are looking for and how quickly you would like your policy to go into effect, as well as other factors. Not sure where to begin? Consider using online tools, or speaking with an agent. Looking for a quick and easy policy? Some insurance companies will take longer than others to approve your application, but we have provided below top insurance companies, who will all make the process go smoothly and quickly; 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.

Your Complete & Easy Guide To Filing A Life Insurance Claim

Once you purchase a life insurance policy, you ensure financial security for family members who are left behind. When the time comes to file a claim to receive death benefits, it can be confusing, or just outright overwhelming. Dealing with the loss of a loved one is hard enough and the last thing you will want to deal with is a complicated claims process; worse yet, your life insurance policy could go to waste because you or your family members aren’t sure how to claim the benefits. So why not take the time now to learn how the process works?

Gather Important Document

document with lines on it — *You will need the life insurance policy to make the claims process go more smoothly.*

When filing a life insurance claim, the first thing you’ll need to do is gather and fill out some necessary documents. You’ll need:

Your loved one’s death certificate – insurance companies need to see this so they can verify that the claim is legitimate.
Their insurance policy documents if you have them – it’s ok if you don’t have access to these, but having them will make the claims process go more smoothly. Take this as a reminder to tell your beneficiary where you keep your insurance info, or to ask your loved one where they keep their information!
A claim form – otherwise known as a “request for benefits,” you’ll need to fill out one of these forms, indicating the cause of death, as well as your relationship with the policyholder.
Documents that prove your identity – be prepared to show your driver’s license, social security card, or birth certificate in order to verify your identity.

Contact The Life Insurance Company

After you gather all of the necessary documents, it’s time to get in touch with the insurance company to notify them of your loved one’s passing, and ask them the best way to send them the claim form. Take this opportunity to ask them any questions or raise any concerns you have, so that the process goes smoothly and is not delayed due to a mistake or misinformation. After you send the claim form, you will have to wait for it to be processed in order to get your payout, which can take anywhere from a couple of days to 1-2 months.

Specify How You Want The Benefits

How you receive your money depends on the insurance company and what options for payouts they offer. Typically there are a few ways that you can get the death benefit; the two most popular options are receiving the money as a lump sum or as an annuity, or annual payment for a predetermined number of years.

the word tax in gold — *Any interest generated from the payout will be taxed.*

Understand The Tax Rules

Most people are unaware that death benefits are not taxed, no matter how you choose to receive the money. The only thing to be aware of is that any interest generated from the principal of the payout is usually taxed as ordinary income, which means that the beneficiary will pay taxes on that money at their top marginal tax rate. For example, if you receive your death benefits in 4 payments over 6 years, you would pay tax on the interest generated each year.

What To Do If The Claim Is Denied

Life insurance claims are rarely denied; generally, they are only denied if the policy’s premiums haven’t been paid, if the person who took out the policy lied on their application, or if the cause of death is not covered by the policy (usually suicide or death by recreational drug overdose). If your life insurance claim is denied, but you feel you have made a legitimate claim, you have options. You can:

Contact the insurance company or agent that helped the insured purchase the plan
Contact your state’s department of insurance
Contact a lawyer

It is not easy to think about losing a loved one, or about your own passing and what your family will go through when you are gone, but you can make these difficult times easier by purchasing life insurance to help with cost of living, debts, and funeral expenses. Another way to make things easier? Make sure you’ve got policies from reputable companies that won’t give you any hassle about filing your claims, and that you understand how each policy works – if you work with an agent, they can help you compare companies and explain each policy to you. Consider using online tools to see what is available to you and your loved ones. 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.

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.

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.

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