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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.

7 Common Life Insurance Riders

Choosing a life insurance policy can be challenging, especially considering that basic life insurance policies sometimes don’t include the coverage you need. But the good news is that you often have the option to add one or more riders, or additional benefits, to your policy to customize it to your life and specific needs. For example, you can choose to add a disability income rider to your policy, which will help you financially in the event that you become disabled. This is just one example of a rider, but there are many different kinds that you can add on to your policy! Every policy is different, and every insurer will offer different riders, but knowing some of the most common life insurance riders can help you determine what kind of extra coverage you might need.

1. Guaranteed Insurability Rider

These riders, which are available on certain life insurance policies (like permanent life and term life), generally allow you the option to purchase extra coverage for your policy every 3 to 5 years, or even after a major life event, like getting married or having a child. The great thing about a guaranteed insurability rider? You can increase your coverage without undergoing another medical exam, so this rider is perfect for those who think their health might deteriorate in the future. It’s also a good choice if you’re currently on a tight budget, but want the option to easily increase your coverage in the future.

2. Accelerated Death Benefit Rider

Also known as living benefits, this rider will pay a portion of your death benefit while you are still alive if you are diagnosed with a terminal illness or a chronic illness that affects your daily life, or if you experience a critical illness such as a serious heart attack. This rider is available on permanent and term life insurance policies, and can help ease the financial burden of looking after someone who is chronically ill, or of end-of-life care.

caucasian man with crutches shaking a woman's hand — *If you lose your income due to an injury at work, a waiver of premium rider would exempt you from paying your policy premiums.*

3. Waiver of Premium Rider

Losing your income if you become disabled and unable to work would be a major strain on your family, especially if you are the main breadwinner in your family, but a waiver of premium rider would exempt you from paying your policy premiums until you could work again, so you wouldn’t have to worry about losing your life insurance. It applies if you are critically ill, seriously injured, or disabled, and if you are permanently disabled, you will pay for premiums by withdrawing from your death benefit. Before adding this rider, you will need to go over your terms and conditions carefully, because the term “totally disabled” differs from one insurance company to another.

4. Accidental Death Rider

An accidental death rider, also known as a double indemnity rider, will pay out two to three times the amount of your original policy to your family in the event that you pass away after a qualifying accident. Qualifying accidents do not include illegal activities and voluntary participation in dangerous activities. These riders can be added to term and permanent life insurance policies, and are especially beneficial if you have a hazardous job or are at risk of an accident at work.

5. Term Conversion Rider

This rider will allow you to convert your term life insurance policy into a whole life insurance policy without having to worry about going through the underwriting process, which could raise your rates if your health status changes. With a term conversion rider, you can bypass the underwriting process when converting your term life insurance policy into whole life insurance.

6. Child Rider

silhouette of a young girl in a wheelchair — *You can add a child rider to help pay for medical expenses and funeral costs in the unfortunate event your child passes.*

You can get life insurance for your children without a separate policy by adding a children’s term rider to your policy. In the tragic event that your child passes (until a certain age), this rider will pay a death benefit to help cover funeral costs or medical bills.

7. Long-Term Care Rider

A long-term care rider allows you to receive monthly payments if you become disabled or develop an illness that requires long-term care. This type of rider acts in a way as long-term care insurance, offsetting the expense of a nursing home or other type of long-term care.

One thing to be aware of when considering adding riders to your life insurance policy is that you cannot add one to a policy that is already active, so you need to decide what is best for you before purchasing a life insurance policy. If you are interested in buying a plan with additional riders, or switching plans to add any riders you think will be beneficial to you, 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.

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.

Tag: life insurance