life insurance Archives - Page 24 of 27

Why Stay-At-Home Parents Need Life Insurance Too

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

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

Keep The Household Running

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

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

Daycare Costs

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

Provide for Your Children When You’re Gone

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

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

Pay Off Debts

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

Cover Funeral Expenses

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

Give Loved Ones Peace Of Mind

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

What Kind Of Life Insurance To Get?

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

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

What Is A Life Insurance Disability Rider?

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

What Is A Rider?

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

What Is A Disability Rider?

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

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

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

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

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

Do You Need A Disability Rider?

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

When looking into a disability rider, you’ll find that they differ between life insurance companies: some insurance companies have different definitions of disability, as well as different coverage options for these riders. Before purchasing a life insurance policy with a disability rider, you should compare plans from different companies to find the one that suits you and your family’s needs best. To do this, consider using online tools, or speaking with an agent. We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Retiring? Don’t Cancel Your Life Insurance Policy!

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

Provides Additional Income

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

Covers Debts

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

Leave A Legacy

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

Cover Your Long-Term Care

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

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

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

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

Other Advantages Of Life Insurance

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

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

What Kind Of Policy Should You Get?

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

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

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

Understanding Your Life Insurance Policy

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

Go Over The Declaration Page

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

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

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

Look At the Policy Illustration

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

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

Review Your Rights

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

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

Check Length Of Coverage

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

Review Your Death Benefit

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

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

Go Over Beneficiary Information and Settlement Options

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

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

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

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

Look For Riders & Exclusions

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

When purchasing a life insurance policy, you should always review it thoroughly before you buy, after you buy, and every year that the policy is in effect, so you can make sure that it continues to suit your needs. Life changes and you might need to change your policy, as well – whether it’s your coverage or beneficiary, or whether you need a new life insurance policy altogether. If you need help reviewing your policy, it’s in your best interest to speak to your local agent; if you need help deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

4 Mistakes to Avoid When Buying Life Insurance

Purchasing life insurance is the best way to make sure your family is financially protected when you are gone – sure, it might not be something that you want to think about, and searching for a policy might not be on the top of your list of fun things to do, but it is necessary, for your loved one’s sake. We get it: with so many different policies from so many different companies to choose from, searching for the right policy for you can seem like a frustrating and complicated chore, but not taking your time to compare and find out which one is best for your needs can end up hurting your loved ones. Learn the four mistakes that many people make when buying life insurance, so you can be one step ahead of the game.

1. Choosing The Wrong Policy

a checklist with 2 red X's — *Before buying a life insurance policy, make sure it checks all of your boxes.*

When shopping for a life insurance policy, you want to get the most bang for your buck. So, with so many different types of policies to choose from, you need to do your research and compare! Think about what you want from a policy: for example, if you want a policy that would cover major expenses for a certain period of time, say while your family is repaying the mortgage, a term life insurance policy is best for you. But if you want a policy that will cover you for your entire life, term insurance is not the way to go, because after your term expires, renewing it can be expensive. If a longer policy is what you’re looking for, whole life insurance is a better option; in addition, these policies offer cash value that you can borrow from during your lifetime.

Side note: it might be tempting to buy the cheapest policy, but don’t! Before you make any decisions based solely on price, check out the insurance company offering the policy: they might not be reputable or reliable, and if they go out of business, you could lose your policy. In addition, if you choose the cheapest option, you could simply end up with a subpar policy that doesn’t provide the coverage your family needs.

2. Not Shopping Around

As with any other type of insurance, you need to shop around to get the best rates and coverage. Life insurance companies are all different and use different data to assess your risk; for example, what one considers a major pre-existing condition that disqualifies you from getting a policy, another will not see it as not such a big deal, or some will charge more if you smoke, but others will not. This means that they also price coverage options differently, which can either end up costing you or saving you thousands of dollars. Comparing the coverage and prices of policies from different companies is the best way to make sure you are getting the right plan with the most savings. The best way to do this is to shop around, and work with an agent who can help you compare policies.

3. Not Buying Enough Coverage

illustration of a woman turning a piggy bank over with one coin falling out — *Choosing a life insurance policy is one of the mistakes that can end up hurting your loved ones when you are gone.*

Far too many people underestimate how much life insurance coverage their family will need. In order to figure out how much coverage is necessary for your family to continue to pay their bills when you are gone, you will need to take the time to do some math: add up your monthly expenses, or long-term expenses, including college tuition, mortgage payments and other debts, and then subtract that figure from your life insurance coverage. This will give you an idea of how much your family would need to be able to pay their big expenses and still have money left for everyday expenses.

Once you’ve done that and chosen the death benefit amount you think is appropriate for your family, remember to then figure out how much your beneficiary will receive in annual withdrawals from your policy. To do this, cut the amount of your death benefit in half and drop a zero: for example, if your policy has a $250,000 death benefit, half of it would be $125,000, and dropping a zero would make it $12,500, which is how much your family would get annually, which equates to about $1,042 a month. If that doesn’t sound like it would be enough to cover monthly expenses, consider a higher death benefit.

4. Waiting To Buy Life Insurance

orange circle with a green price tag and a money sign on it — *Waiting to buy life insurance can make it more expensive later.*

Over half of all Americans put off buying life insurance, but waiting to buy it is one of the worst mistakes you can make. Life insurance rates are based on a number of factors including your health and family history, but they are also based on your age, so the younger and healthier you are, the cheaper a life insurance policy will be. In addition, if you wait too long, you could end up developing a health condition, which would also push your rates up, or you could unexpectedly pass away without a policy, leaving your family struggling to keep up with their living expenses.

If you avoid all of these common mistakes people make when it comes to buying life insurance, you will be able to provide enough coverage for your family without breaking the bank. Shopping around, doing some comparison (and some math), and not waiting to purchase will mean you’ll be able to find a great life insurance policy that provides the protection your family needs. When 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.

The Different Types Of Final Expense Policies

Funerals are not something we often think about until we have to deal with them in our own lives, but it’s an unfortunate fact that they require a lot of planning and are extremely expensive. In fact, the average funeral costs anywhere from $10,000 to $15,00 – that’s a lot of money for your family to come up with, but it will be necessary for them to do so one day. Paying for your final expenses doesn’t have to be a burden for them, though: you can cover your funeral costs and protect your family’s financial security with final expense life insurance. There are multiple types of policies to choose from, so you are sure to find the one that is right for you and your family.

What Is Final Expense Life Insurance?

padlock — *Final expense premiums are locked in and cannot be raised by the insurer.*

A final expense life insurance policy will pay out benefits to your chosen beneficiary to cover medical and other end-of-life expenses, including funeral and/or cremation costs. But there is some flexibility as to how your loved one can spend the money: after paying for your funeral, they can decide to use the money for other debts or expenses. And that’s not the only great thing about this type of policy; other benefits of a final expense life insurance policy include:

No medical exam required for coverage
You will be approved and insured after answering a few questions
Your policy will not be canceled due to changes in your health status
Coverage is guaranteed for life as long as you pay your premiums
Premiums are locked in and cannot be raised by the insurer
Policies have a cash value that builds over time and can be accessed at any time
Death benefits are tax-free

Some plans will also offer additional benefits in the event of an accidental death.

Types of Final Expense Policies

Most companies offer multiple types of final expense policies, and it is important to compare all plans offered by different companies so you can find the right one for your needs and budget. Final expense policies fall into 2 basic categories:

Simplified issue policies– Over 90% of final expense policies are simplified issue. This means that medical exams are not required to get coverage, but you will have to answer some questions, such as whether you use tobacco products.
Guaranteed issue policies– This type of policy is usually only issued to those aged 40-80. You will need to answer medical questions with this policy, but the insurer will not generally ask if you are a smoker.

Depending on your age and health status, there are different types of plans you can choose from:

Level Benefit Policy– This type of policy is offered to applicants who are in excellent health, and is very similar to whole or term life insurance, because the rates are lower and the death benefit will be available on the first day of coverage.
Graded Benefit Policy– If you cannot qualify for a level benefit policy due to pre-existing health conditions, you can look into this type of policy, which will pay a portion of the death benefit if claimed during the first 3 years of the policy life, and the full benefit after 3 years have passed.
Modified Benefit Policy– If you cannot qualify for level benefit or graded benefit policies, this policy is the way to go. It requires no medical underwriting, but there is a 2-3 year waiting period before the insurer will pay the full death benefit; however, if you die from natural causes before the waiting period is up, the insurer will pay the sum of all premiums paid plus 10% interest.

How Much Coverage Do You Need?

Picking a policy is a big decision, and in order to know which is best for you, you should first determine how much coverage you need. The best way to do this is to estimate your monthly household expenses and factor in funeral expenses, which on average will be $10,000.

No one wants to think about their own death, but it is important that your family is financially protected when the time does come. When determining which policy is best for you, you should look at multiple insurance companies; 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 final expense 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.