life insurance Archives - Page 16 of 27

Does My Driving Record Matter When Buying Life Insurance?

Your driving record may not seem like a big deal, but it can affect your life in certain ways. For example, if you have accumulated points on your license, the price of your car insurance will go up – but did you know that your driving record can also impact the price of your life insurance policy? One of the things that life insurance companies will look at when determining how much of a risk you are to insure is your driving record. If you seem like a high risk, your premiums will be more expensive, and some life insurance companies might deny you coverage altogether. On the other end of the spectrum, if you’re a great driver, you might be able to get lower rates.

Life Insurance & Your Driving Record

When you apply for a life insurance policy, life insurance companies will request a copy of your driving record, or your motor vehicle report (MVR). The report will most likely include your driving record from the last 5 years, but some reports can go back 10 years or more, depending on the severity of the violations on your record. Once they have this record, they will assess your risk based on your violations, but generally, they will not use speeding tickets from 5-10 years ago against you.

What If You Have Had a DUI/DWI?

illustration of a bottle and a key with a prohibited red sign over them — *If you have a DUI on your record, you could get denied coverage, or have to pay high rates.*

Having a DUI/DWI on your record is one of the biggest red flags for life insurance companies, mainly because being under the influence while driving can lead to an accident, resulting in your death or the death of others. But if you have a DUI or DWI on your record and are wondering if it will be used against you when buying a life insurance plan, the answer is it actually depends on when you were charged with the violation. If you have had a DUI/DWI in the last 5 years, you will either be denied coverage or you will have to pay more in premiums. But it really depends on the life insurance company, since each offers different plans, coverage, and rate options, and each assesses risk differently. That’s why it’s so important to compare different plans from different life insurance companies!

What If There Are Minor Violations On Your Record?

DUIs are taken very seriously by life insurance companies, but what about other less serious marks on your record? Speeding tickets, minor accidents, and other minor infractions might not be held against you as much as other more major violations when purchasing life insurance. Once again, when it comes to rates and how each life insurance company evaluates driving records, it typically depends on the specific company.

If you want to get ahead of the game when applying for a policy, you can request a motor vehicle report from your state’s DMV, review it, and then fill out your life insurance application truthfully. If you don’t include this information, the life insurance company could end up denying your application or your family’s claim and death benefits after you pass away.

You Have Options

If worst comes to worst and you are denied life insurance because of your driving record, you do have other options. You can opt for a no medical exam life insurance policy: with one of these policies, you will not be asked medical questions and the insurance company will not review your driving record. These plans will have higher rates and lower coverage amounts, but you will be able to provide your family with life insurance even if you have no other option for traditional life insurance policies. Also, don’t give up: if you have been denied coverage, you can always apply for life insurance again after some time has passed.

Even if you don’t have a stellar driving record, all hope is not lost. You can still get a great life insurance policy, all you need to do is compare plans from different life insurance companies. The best way to find the right life insurance policy from a company with great ratings 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.

Don’t Just Let Your Policy Renew, Review It First!

More than likely, you have a bunch of contracts that you allow to renew each year, like your cell phone bill, car insurance, internet, etc. and you don’t even think twice about it. Sometimes it’s just easier to allow things to renew without reviewing them, or maybe you just simply forget about reviewing all of these contracts before they renew. This might be especially true for your life insurance policy: odds are you’ve probably only reviewed it once or twice within the first year or two of having it. But as your life changes, there may be times when your financial needs change, so it is recommended that you review your life insurance policy on an annual or biannual basis to see if any of the following changes are going to impact your policy in any way.

Administrative Changes You Might Need To Make

Take a look at your life insurance policy and check if there are any administrative changes that need to be made to it, such as:

moving boxes on a dolley — *Make sure that your address is up to date on your life insurance policy before it renews.*

Address or contact information changes

Have you recently moved, or have you changed your phone number or email address? It’s important to make sure that all of that information is up-to-date, so your life insurance company has a way to contact you in case there’s any change in your policy, and so that you receive your bill without any issues. If you forget to make these changes and a bill goes to your old address or you get notifications on your old cell phone number, you risk your life insurance policy lapsing.

Bank account changes

If you are like most people, you pay your bills on autopay linked to your bank account. If you forget to update this information, your premiums will not get paid, and your policy will lapse.

Change of beneficiary

When you first purchase your life insurance policy, you will have to choose a beneficiary to receive your death benefit in the event of your passing. Sometimes things change: for example, if you and your spouse get divorced, you will want to change your life insurance beneficiary to your children or someone else, to ensure that the proper person receives your death benefit.

Policy Changes You Might Need To Make

When it comes to your policy, you might decide at some point that you need more coverage or less coverage. The life changes that could trigger a change include:

Change in income

Whether you have an increase in your income or a decrease in your income, it is important to take a look at your life insurance policy and make sure that it is still affordable, works for you, and will provide enough coverage for your family. If you do get a raise in your income, your expenses will likely go up as well, so you’ll need to make sure that your coverage will meet these added expenses when you pass.

Having children

If you grow your family, you will have more financial responsibilities and should consider increasing your coverage to provide financial stability for your child as they grow, especially if you want to help with college when they are older.

Health improvements

If you bought a life insurance policy when your health was not at its greatest, your rates could be high because of your health conditions. But if your health gets better over time, you can save money on your monthly premiums by providing proof of these improvements. For example, if you were a smoker when you first bought your policy, but later quit smoking, and keep it up for 6 months to a year, you can provide this information to your life insurance company and start saving money.

Your health is going downhill

On the other hand, if your health takes a turn for the worse, you should also consider reviewing your life insurance policy. Declining health will not raise your life insurance policy rates, because once you purchase a policy, your rates are locked in. But if your health begins to deteriorate, you might want to add riders onto your policy, such as a terminal illness rider, or you might want to increase your death benefit coverage.

Reviewing your life insurance policy before it renews automatically can help you save money and ensure that your family is properly covered in the event that you are no longer around. Once you review your policy, and you come to the conclusion that you need more coverage, or would like to convert from a term life insurance policy to a permanent life insurance policy, it is important to begin researching plans to find the right one for you.

The best way to understand how life insurance works, and find the right 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.

8 Expenses That Life Insurance Covers

Life insurance is more versatile and useful than you might think. Not only is it important to have as a financial safety net for your family, but depending on the type of policy you have, you can also borrow money from your policy and use it for unexpected expenses. This can be very helpful if your family is trying to save money, and can help you or your family pay for any unexpected scenarios, whether you are around or not. Find out just why life insurance is necessary and why so many people choose to purchase an affordable policy.

1. Everyday Expenses

When you are gone, your family could end up struggling without your income to pay for everyday expenses. Life insurance will help pay for all their everyday expenses when you pass away, so your family will not have to stress out about their bills while grieving your loss. While you will not be able to take away their pain, you can offer them financial stability until they can adjust to the change. Your life insurance policy will help cover mortgage or rent payments, utility bills, groceries, and more.

2. Therapy Expenses

Losing a loved one is not easy, and for some, it can cause depression and other issues that require counseling or therapy. If your loved ones need this, they will be able to pay for it with money from your life insurance policy. Your benefits will help them pay for therapy or will allow them to take more time off from work to properly grieve.

3. Dependent Care

If you have small children who need to be taken care of, or if you have elderly parents who live with you, you know that care for them is expensive. Childcare can cost on average $15,000 a year per child. When you pass, your spouse will most likely need help with the children and/or taking care of their elderly parents, and your life insurance can offer this for them by providing the funds to hire a nanny or caregiver.

3. End of Life Expenses

Funerals are not cheap. Whether you choose to get buried, which can cost around $15,000-$20,000 on average, or cremated, which can cost around $6,000 on average, final expenses can be a burden for any family. Life insurance will help your family be prepared for the shockingly high funeral expenses they will face. All life insurance policies can help cover these costs, but if you’re looking for an affordable policy that is focused on covering them, a final expense life insurance policy is a great option. Final expense life will cover funeral costs and any other debts you might have, while other types of life insurance policies can help cover more.

4. Mortgages

Monthly mortgage payments could also become a burden on your family if you are no longer able to help out. You want to make sure your family can continue to pay for the house where they have made so many memories, rather than having to sell it to pay down debts and for other expenses. Life insurance can help maintain monthly mortgage payments.

5. Medical Bills

If you are diagnosed with a terminal illness, your care could become very expensive if you need to have extensive medical procedures/treatments, or need to be put in a nursing home. Life insurance can help pay for these bills during your final years, especially if you choose permanent life insurance, which builds cash value over time. This cash value can be used to help pay these bills while you are alive, and the rest of the policy will allow your family to receive a death benefit when you pass.

6. Continuing Your Business

Do you have a business that you worked hard to build? The last thing you want is for your business to fail after your death, especially since it could continue to be a source of income for your family. Life insurance can help sustain your business, and help your business partners cover any losses associated with your death.

8. Education Fees

If you have children and are saving for their education, you should consider a life insurance policy to help cover their education fees if you pass away before being able to save enough for these expenses.

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 while they are grieving is money. The best way to understand how life insurance works, and find the right 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.

Keep Your New Year’s Resolution to Save Money With This Financial Checklist

The new year is here, and you’ve probably made some New Year’s Resolutions, right? Maybe you want to get healthier or break bad habits, but what about improving your finances and making sure your family is going to be financially secure in the future? These things should be just as high on your list of priorities: saving money is always important, even though it might feel like a pretty tough resolution to keep. Fortunately, there are a few simple things you can do to help reduce your yearly spending, including cutting down on some little things to save more money, while also investing the money you save by making these changes in the checklist below.

Check Up On Your 401K

illustration of a hand putting money into a bin that is labeled retirement — *Assess how much money you have saved up in your 401k to make sure you have enough when you retire.*

When was the last time you looked at your 401K, and at how much you’re investing and earning? For example, have you gotten a raise that would allow you to contribute more? This month is a great time to assess how much money you want to put into your retirement fund every year. This way, you can make sure you’ll have enough money put away for when you retire; you can also choose to contribute a little less right now if you need more cash in the short-term.

Review Your Household Finances

Do you get your nails done every 2 weeks or once a month? Are you planning on going on a family trip this year? Do you have a ton of subscription services that you don’t use very often? Now is a great time to review your monthly and annual household finances, so you can look for ways to save money. Are there ways you can budget better and expenses you can cut that are not necessary? If so, trim your household spending, and create a monthly budget you can live with.

How’s Your Credit Score?

January is the perfect time to check your credit score without affecting it. You’re entitled to a free copy of your credit report once a year from each of the three major credit reporting bureaus (Equifax, Experian, and TransUnion), so take advantage of it! Knowing what your credit score is will let you know where you stand if you’re planning on purchasing any big-ticket items. If your free report reveals that your credit score is not that great, create a plan to help increase your credit score, starting with making a resolution to pay all of your bills on time.

Life Insurance Benefits

a case full of hundred dollar bills — *Life insurance can offer you and your family extra money for any unexpected expenses.*

Want to save more money? Want extra cash for those unexpected expenses that pop up out of nowhere? A life insurance policy is a great way to help your family if you or your spouse can no longer help. In addition, if you choose a permanent life insurance policy that offers a cash value, you can borrow from the cash value and use it for your expenses, so you won’t have to struggle to pay your bills, choose one bill over another, or take out a loan.

And if you do have a life insurance policy, now is the best time to review your policy and make sure it still meets your needs, since every stage of your life will have different responsibilities. Determine if you need more or less coverage, and if you have a term life insurance plan, think about if you want to convert it into a whole life insurance policy.

Choosing the right life insurance policy is necessary to ensure that your family gets the benefits they need. 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.

When Should You Cancel a Life Insurance Policy?

When you think about protecting your family and their future, what comes to mind? At the top of your list should be life insurance. But after you’ve made the leap and purchased a policy, what happens if there are issues with it, or what if it doesn’t end up meeting your needs as you go through changes in your life? Is it ever the right move to cancel a life insurance policy? And what are your options when doing so?

You No Longer Have Dependents

If your children are all grown up and have their own lives, your current life insurance policy might no longer be as necessary as it was when they were growing up. In addition, if you have lost your spouse, this will also change your life insurance needs. If you no longer have as many dependents as you once did, your life insurance policy might be too much for your needs now.

When you find that you have fewer dependents, you should evaluate your financial needs as well as any financial burdens that your family could face after your passing, including any end-of-life expenses, medical bills, and other debts that need to be paid off. If your policy covers way more than those things and you’re finding the premiums to be too expensive, canceling it might be appropriate; if you choose to do so, though, you should look into other policies that would fit your current needs. After all, you still want to protect your family and make sure that they are able to pay off your funeral expenses and any other debts, without having to reach into their own pockets.

You Lose Your Job

Losing your job is not always a great reason to cancel your life insurance policy – after all, you’ll still need financial security for your family – but if you can no longer afford your premiums and you don’t have any riders that protect you from loss of income, you might need to consider canceling. It is important to note, though, that you might be facing some hidden cancellation fees and tax penalties if you do choose to cancel your life insurance policy.

As we pointed out above, canceling your policy might seem like a wise budgeting decision right now if you’ve lost your job, but your family could end up with financial issues in the future if you no longer have life insurance. So, if you’re worried that your current policy could become too expensive, consider asking your insurance company if you can add a rider that will help you pay for your premiums if you lose your job, such as a waiver of premium rider. You can also consider converting your policy or choosing a different life insurance policy that will fit your current needs more, and then increase your death benefit later when you have more cash on hand.

Changing or Converting Plans

As we have already mentioned, you do have the option of changing or converting your current life insurance policy. Instead of being tempted to cancel your policy, whether it’s because you want to take advantage of another insurance company’s lower rate, you feel like you can’t afford it anymore, or it doesn’t fit your needs, you can switch policies. Switching policies – instead of canceling outright – can be a great way to save money or even get more coverage for the same monthly premiums.

There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, 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.

Need Extra Cash? You Might Be Able to Borrow From Your Life Insurance Policy

Sometimes things happen in life, and you could end up with debts that are difficult to repay without a little help. If you’re looking for some extra cash, have you ever considered that you could borrow from your life insurance policy? Yes, it is possible to borrow from your policy – that financial cushion is not just for when you pass away. But before you go digging into your policy, there are a couple of things you need to be aware of: for example, you can only borrow from a permanent or whole life insurance policy. Not only that, but there are rules you need to know so you don’t put your family’s future financial security at risk.

Does Your Policy Allow You To Borrow?

illustration of money bills — *Permanent life insurance policies have a cash value, which you can borrow from.*

One of the first questions that needs to be addressed is if your life insurance policy actually allows you to borrow from it. The short answer is: as long as your life insurance policy has a cash value, you can borrow from it. Permanent life insurance policies, including final expense, whole life, and universal life insurance all have cash value.

Term life insurance only provides you life insurance for a fixed period of time, generally anywhere from 10-30 years, and provides a payout if you pass away during that term. Because there is no cash value in a term life insurance policy, you cannot borrow against it.

If you have a permanent life insurance policy, your cash value is like a savings account that builds interest over time, and as you pay your premiums, the cash value increases. Each life insurance company will set their own cash value amount and let you know when you can use it. The downside to having one of these policies? They are generally more expensive than term life policies, because they will cover you for your whole life, and because of the cash value you accrue with them.

How Borrowing From A Life Insurance Policy Works

When you are in need of cash, you can consider borrowing from your life insurance policy’s cash value; how much you can borrow from it depends on the size of your policy and how much you have paid into it. You will first have to request a loan from your policy’s cash value, because you are not actually taking money out of the cash value: the insurance company is extending a loan to you and using your cash value as collateral. The loan is also not recognized by the IRS as income, therefore it will not be taxed.

Unlike a bank loan, life insurance policy loans do not affect your credit and there is no approval process necessary – it’s your money to use! The more money that you have paid into your policy, the lower your payments to pay back the loan will be. It is important to note that interest on the loan will begin to accrue immediately, at a rate determined by the insurer. The rate is typically lower than that of a bank.

Paying Back A Loan

black alarm clock placed on top of hundred dollar bills — *It is best to pay back you life insurance loan as soon as possible so your policy doesn’t lapse.*

Most life insurance companies will have a flexible payback schedule, but it’s in your best interest to pay back your loan as quickly as possible, because the loan amount can be deducted from the death benefit that your family would receive in the event of your passing. Not only that, but the policy can lapse if a substantial amount is taken out and not repaid. Once it lapses, you essentially lose your policy, leaving your family without any financial security in the future.

When Should You Borrow From Your Policy?

You can borrow from your policy at any time, but you should only do so if you:

No longer need the death benefit- If you are retired and have no major expenses, and if your family is financially secure and you do not need the death benefit, a loan against your policy can work for you. In this situation, you can also consider surrendering the policy and collecting the accumulated cash value.
Don’t qualify for any other loans- If you cannot get a loan from a bank or any other source, your life insurance policy is a good option. One of the pros is that you will not have your credit checked or affect your credit score when you apply for the loan.
You can pay the loan back– It is always nice to take out a loan when you need cash, but if you do so from your life insurance policy, you will need to pay it back or lose the policy. If you know you can pay it back, taking out the loan when needed is a no-brainer.

If something were to happen to you, your family would be facing emotional hardships, as well as financial ones. Life insurance is a great way to help your loved ones with those financial hardships: the money they receive will help pay for expenses related to your death, and any other debts or bills they have. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, 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.