We know it’s hard to think about your child’s death; after all, every parent hopes their children will have a long, healthy life. So, it’s understandable if buying life insurance for your kids doesn’t seem like a priority. However, as a parent you have to constantly prepare for the unexpected. Buying life insurance is typically a smart financial move, but is it necessary for a child?
What is Child Life Insurance
Child life insurance can be bought by a parent, guardian, or grandparent to protect the child’s or guardian’s financial security. Child life insurance works the same as adult life insurance. You pay a premium and when the covered person passes their beneficiaries receive a payout. However, coverage options for kids are much more limited than they are for adults. Adults can choose from a variety of plans including term, whole, universal etc. Child life insurance policies only come as a whole life policy. Meaning as long as you keep up on the premiums the policy will last for the child’s entire life. Having a whole life policy also means the premiums are fixed so they will never go up.
There is also the added benefit of a cash value with a whole life policy. This is the savings component of a life insurance policy where a portion of the premium is set aside and earns interest over time. However, for child life insurance the coverage amount is typically under $50,000. Once your child is a certain age, typically between 18-21, they can take over the policy for themselves. And decide if they want to keep it, increase their coverage, or drop it completely. So essentially you’re giving your child a head start on protecting their own families when they eventually pass.
Child Rider Vs. Child Life Insurance
Child life insurance and child riders are often confused, but they are not the same. With child life insurance it’s a separate contract that covers the risk of death of a child. When the child passes the family receives a death benefit. Child riders are add-ons that you can choose to add to your own life insurance. They are tied to a parent’s policy rather than being a standalone policy. If a child on a child-rider dies, you get a small payout. If all you’re looking for is peace of mind in case the worst happens, a child rider may be a better choice than a child life insurance policy on its own. Child riders offer:
Straightforward protection – A child rider gives security for your child without the complicated investing part of a child policy.
Conversion options – If your child needs coverage for the rest of his or her life, you can change a child rider into a permanent insurance in the future.
Affordability – A child rider costs significantly less than a full life insurance policy for a child. Every $1,000 of coverage typically costs about $5 per year. So, a $10,000 child rider might cost you $50 more per year.
Benefits of Child Life Insurance
If you’re debating whether or not to buy a policy for your child and aren’t sure what to look for, here are some of the benefits of a policy.
Future insurability – Most child life insurance policies come with or offer a guaranteed purchase option. That means the child can buy additional coverage once they are an adult without having to take a medical exam. This can be especially helpful if your child gets a long-term illness like diabetes or decides to have a dangerous career. Most people with health problems or hazardous jobs have to pay a lot more for life insurance than the average person.
Savings – You can take money out of the cash value account or take out a loan from it. Then your child turns 18, they have the option to drop the policy and receive the full cash value. The money can help for things like college tuition, a car, or down payments on their first home. The account is also tax-deferred if you don’t have to pay taxes on the interest until the money is taken out.
Worst case scenario coverage – Losing a child is very painful, and leads you to having unexpected costs in your worst moment. As long as the premiums are paid the policy will pay out a lump sum if it happens. The money can be used to cover things like a funeral or grief counseling. It can also help cover your bills so you can take off work while you’re grieving.
Disadvantages of Child Life Insurance
Generally, they are not a smart financial investment. While in the benefits list we mentioned insurance companies sell life insurance for kids as a way to save for your child’s future with the cash value, these types of policies can have higher fees and less growth than a separate investing account. We also noted that since rates go up as you get older, getting a policy when your child is young can give them coverage when they are older. Even though life insurance rates do go up between 4.5% and 9% every year, it’s rare that a child won’t be able to get a cheap policy as a young adult. The only time this isn’t true is if your child has a disability or illness that will last their whole life and make it hard for them to get cheap term life insurance when they’re older.
Another benefit is that a full policy for a child is a great investment, but this is sometimes not the case. Even though the cash value of a whole policy makes interest at a rate set by your insurance company, often with a guaranteed minimum, it is too expensive for the average person to buy a whole policy. This is because whole life insurance costs a lot more than term insurance. Over the course of your child’s life, you may not be able to keep paying those fees. Whether or not you should get child life insurance entirely depends on your family’s specific situation. Where one child may benefit because they have a chronic illness, another might not actually get too much from it because they’re healthy and able to get a completely affordable plan as a young adult.
Do I Need Child Life Insurance?
Before you buy coverage for your kids, you should look at your budget and think about your own life insurance needs. In general, your own life insurance is more important than your child’s because it can help pay for your family’s living costs or other costs if you die. Here are times when getting a policy for your child might be a good idea:
Your child makes a lot of money as an actor, model, or social media star.
Your teenager is working part-time to help pay for things around the house.
Your child takes care of their younger siblings and gives you the kind of help you would have to hire someone else to do otherwise.
Beyond that, you don’t need to protect your child’s ability to get insurance unless you have a family background of serious health problems that start young or a child with a disability. When it comes to locking in premiums, most adults in their 20s and 30s don’t have any trouble getting reasonable coverage. If you need to protect your child’s life, it’s easier and less expensive to add a child rider to your term policy. Riders are add-ons that can give your policy extra coverage. You could also choose this choice if you want to pay for a funeral in case the worst happens.
Alternatives
Don’t worry if you’re not sure about child life insurance or if you decide it’s not for you. There is still a way to protect your child’s financial future and help them get off to a good start when they become adults. Savings plans are a more straightforward option for saving money for your kids. You can put the money you would have spent on the life insurance into traditional savings accounts, such as:
529 savings plan – These plans are tax-advantaged accounts offered by the government. There are two kinds of 529 accounts: prepaid tuition plans and educational savings plans. Both can only be used to pay for higher education costs, and qualifying withdrawals are tax-free.
Custodial accounts – Parents can save and invest in a custodial account kept in the name of their child, such as a UTMA (Uniform Transfers to Minors Act) or UGMA (Universal Gifts to Minors Act) account, to build up savings for their child. Parents or guardians take care of custodial accounts and give them to the child when they turn 18 or 21.
IRA – If your child works and makes money, you can set up an IRA savings account for them and match their earnings to get them started for retirement savings.
Let EZ Help
Since child life insurance is so dependent on your circumstances your best bet is to speak with an agent. Everyone has their own needs, goals, and ways they can spend their money. At EZ.Insure, we know that you and your family want the best protection, but we also know you have to stay within your means. So, we will do everything we can to help you decide as well as find you the best policy at the best price.
We want to make it as easy as possible for you to do so! We’re here to help, and the best part is that everything we do is free. We will help you with everything, from answering all of your questions to helping you choose a policy and finish the registration process. We will also help you after your plan has begun. To get started, just type your zip code into the bar below or give us a call at 877-670-3560.
There are many aspects of life that are beyond our control, most of all being when it will end. Even though you have no control over that. You can take steps to ensure that your family is not put in a financially precarious situation when the time comes. It’s time to look into purchasing life insurance. And once you start searching, you will notice that there are many different kinds of policies available. The first thing you have to decide between is if you want temporary (term) or permanent life insurance (whole life). Most people have trouble deciding which one is a better fit for them. Some even end up switching from one to another. To start you need to understand the fundamentals of each, including the pros and cons. Below we’ll look at each policy and then compare them for you.
Term Life Insurance
Term life insurance is the more affordable of the two, because unlike whole life insurance, it does not last forever. You have the ability to choose how long you want to be insured when you purchase this kind of policy. The length of time (known as the term) can typically range anywhere from 10 to 30 years. But there are companies who offer shorter or longer terms as well.
Your beneficiary will only receive the face value of the policy from your estate. And there is no cash value that can be withdrawn from the policy before you’ve passed away. This is one of the primary differences between your two options. People who want to be covered for a set amount of time, such as while they are still making payments on their mortgage or other loans, are the best candidates for this kind of insurance policy. Additionally, if needed, you can convert your term policy to a whole life policy.
Types Of Term Life Insurance
There are several types of these policies. Below we’ve highlighted a little bit of each of them to give you an idea of how term life insurance works.
Level term
This type of term life insurance policy is the most common type and is often the type people choose. The reason for its popularity is simple. Both the death benefit and the premium are set when you purchase your policy. Meaning they don’t change during the entire term. You’ll never suddenly have to pay more a month or suddenly have a smaller death benefit. Making this type straightforward and easy to manage and afford.
Annual renewable
Coverage under an annual renewable life insurance will last for 1 year. You are able to renew your policy every year however, the premium will rise each year due to your age. This type of policy is best for meeting short-term needs for life insurance coverage. This is because the policy will eventually become expensive the longer you have it. If you want a longer coverage it’s more beneficial to choose a different option.
Increasing term
With these policies your death benefit will increase at a steady predetermined rate over the length of your term. For example, your health benefit could increase by 5% every year. Meaning over the course of your term your coverage becomes more valuable. However, increasing benefits typically means increasing premiums.
Decreasing term
This policy is the exact opposite of an increasing term policy. With these your death benefit will decrease over your term but your premiums will remain the same. But why would anyone want a smaller death benefit? Great question, this type of policy is typically meant for someone who wants to make sure a specific loan or debt is covered once they pass. For example say you have a large mortgage and you want to make sure it’s paid off for your family if you pass away. As you pay off your mortgage while you’re alive the death benefits decrease, matching the loan amount. That way when you pass the amount your family would need to finish off the loan will be available to them. This ensures they can remain in their home and not have extra stress of worrying on top of their grief.
Return-of-premium
Return-of-premium life insurance, also referred to as ROP insurance, is a type of term life insurance that will return your payments in the event that you outlive your coverage. The premiums for ROP policies are significantly higher compared to those of other term life insurance types. On the other hand, you may find that the possibility of having your premiums returned to you is a valuable feature of this kind of insurance policy.
Whole Life Insurance
Whole life insurance is a life insurance that will remain in effect for your whole life. Because of this, the cost of this policy is significantly higher than the cost of term life insurance. These policies come with a cash value that makes these policies an investment as well as provide protection. You can borrow money or take money out of the cash value of your policy whenever you need and a portion of your premium payment is always added to the cash value of your policy. If you pay your premiums in accordance with the guidelines set forth by the government, you will be able to withdraw tax-free the majority or all of what has accumulated in your account.
Types Of Whole Life Insurance
Just like with term life insurance, there is an array of options available to policyholders when it comes to whole life insurance. This gives you the ability to select the precise coverage you require along with the benefits you desire:
Indexed
A type of permanent life insurance that includes a cash value, which earns interest based on an investment index chosen by your insurer. For the vast majority of individuals, purchasing indexed whole life insurance is not the most prudent financial decision. It is possible that your cash value will grow faster than it would under a traditional whole life policy. However, this rate will be lower than what you would receive from a savings or checking account. The minimum rate of return on your cash value is determined by your provider and the majority will also determine your earnings’ maximum rate of return. In addition, these policies may not be the best option because cash value accounts incur fees, whereas traditional savings accounts do not.
Modified
The initial payments for a modified whole life policy, also known as a modified premium whole life policy, are affordable. After the initial payment period (2 to 5 years) finishes, the premium will increase once and then remain constant for the remainder of the policy’s term. Rather than waiting until you’re older to purchase coverage, you can obtain a higher death benefit sooner by purchasing a modified premium policy. Even if you cannot currently afford the higher premiums but are confident that you will be able to in a few years. During your initial payment period, it may not be possible to add to the cash value.
Simplified issue
Simplified issue whole life insurance is a permanent form of life insurance. Therefore, you are covered for the duration of your life. However, its coverage is less extensive and it is restricted to those aged 45 and older. If you apply for this type of policy, you will not need to undergo a medical exam. Instead, you will be asked a few health-related questions. Insurers will charge you a higher premium for a lesser coverage amount with this policy because the health evaluation is not as thorough. The expedited application process will result in almost immediate coverage. However, you should be aware that even with simplified issue policies, there are still conditions that can prevent you from acquiring coverage.
Guaranteed issue
Guaranteed issue life insurance does not require any type of medical underwriting. In other words, neither a medical exam nor questions about your medical history will be required. There is a catch -this type of life insurance requires you to pay a higher premium in exchange for a smaller death benefit. In addition, after purchasing this type of policy, you will be subject to a waiting period. During which death benefits will not be paid out.
In addition, you will not be covered if you die from certain causes (such as suicide) in the first few years after purchasing the policy. This doesn’t mean that guaranteed issue policies have no value. Due to the guaranteed issue nature of these policies, they can be a lifeline if you are over a certain age or have health issues that make traditional insurance policies unaffordable. In most cases, however, the maximum coverage amount for these policies is $25,000.
The Differences
Both term and permanent life insurance require a monthly premium payment. In exchange, your beneficiaries will receive a predetermined amount of money (your death benefit) upon your passing. The length of the policy is the primary distinction between these types of insurance.
When purchasing term life insurance, you will be required to choose the duration of your coverage, typically between ten and thirty years. Your policy will terminate at the end of that period. If you outlive your policy, your beneficiaries will not receive any death benefits. You will then be required to decide whether to purchase a new policy or extend your current one. In both scenarios, your premiums will likely increase because you will be older and may have developed health problems.
A major disadvantage of term life insurance is the possibility that your policy will expire and you will have to extend or repurchase it. However, with whole life insurance, you may pay higher premiums, but the policy covers you for the remainder of your life. In addition, many whole life policies have a cash value – similar to a savings account – that accumulates money over time.
Which Is Best For You?
When selecting the life insurance policy that best meets your requirements, you must consider your assets, loans, budget, and desired duration of coverage. Do you want to ensure that expenses such as mortgage payments and college tuition for your children are covered? Then a term plan is an excellent and inexpensive option. Do you want to accumulate a cash value that you can borrow against and that your family can use when you die? Then your whole life will function better for you.
The premiums for both whole life insurance and term life insurance are fixed for the duration of the policy. But whole life insurance is more expensive because it remains in effect until death. Whereas term life insurance expires after a set period of time. If you are on a tight budget, you should purchase term life insurance, but if you want to build cash value or have long-term dependents, you should purchase whole life insurance.
We recommend consulting with a licensed agent before selecting a life insurance policy. They will be able to discuss your options and determine the best plan for your requirements. Don’t wait until you need life insurance to compare rates from the listed, highly-regarded insurance providers. Always check multiple sites to ensure that you have negotiating power and that you are aware of the unique benefits of each company. Ensure that a difficult time for your loved ones will not be exacerbated by a financial burden by comparing life insurance rates today. Start comparing today by entering your zip code in the box below or giving us a call at 877-670-3560.
Life insurance is one of those things that you know is a good idea but is also easy to forget about or put on the back burner. Having a policy is a necessity, though, for everyone from those who are just starting out in life to retirees – it’s just that your needs are different. But exactly which group or life stage needs it the most?
The Need for Life Insurance
When it comes down to it, it’s not about your age when it comes to life insurance. It’s about who is in your life. If you have a spouse or partner, children, or a business partner, you are in the group of people that has the biggest need for life insurance.
As we already said above, life insurance is a necessity no matter what stage of life you’re in. But this is especially true if you have anyone who relies on you financially. Even if you think you don’t need a policy because you’re young and healthy, or if you don’t think that the cost is worth it, you need to consider the financial consequences of your death on your family. They have to pay for your funeral services, your debts, and any other bills that they relied on you for.
And what if you’re older and retired with grown children, but a partner still living? You’ll still be in the group that has a high need for coverage. Remember, your partner will still have expenses after you are gone, including your final expenses and any medical debts that you leave behind.
Your loved ones can use the proceeds from a life insurance policy in a variety of ways, including:
Covering funeral and burial expenses
Paying off any outstanding debts owed by your estate
Creating a supplemental source of income for your loved ones
Helping with college expenses for children or grandchildren
Providing a nest egg of savings for a spouse’s financial needs
Types Of Life Insurance
It’s clear that anyone who has someone who relies on them financially is in serious need of life insurance, but the type of policy that is best for your life stage or situation will vary. You should look into the following types of policies:
A whole life insurance policy remains in effect for the entire life of the policyholder, as long as you keep up with the premiums payments. With this type of policy, premiums will remain the same throughout the life of the policy and will not increase for any reason. One of the best things about this type of policy is that it has a cash value component. Meaning your policy will build tax-deferred cash over time at a guaranteed rate of interest.
Whole life insurance is best for people who want a longer policy with a cash value that they can borrow from. So one of these policies might be right for you if you’re younger and have children who will one day go to college, since you can borrow money from your policy. Be aware that you must undergo a medical exam to qualify for a whole life policy, and that these policies are more expensive than term-life policies.
Term life insurance is one of the most affordable types available. But these policies only cover you for a limited period of time (or term), generally anywhere between 5-30 years. This type of policy is best for people who want affordable coverage for large expenses such as mortgage payments, college tuition, and other debts, usually those who are younger or middle-aged and want to be able to replace income in case of an unexpected death. One of the great things about term life is you can convert your policy to permanent life insurance before it expires without having to go through medical underwriting again.
Final expense insurance is generally bought to cover funeral expenses, burial expenses, and any other medical debts you may have. There is no medical exam required, and it is relatively affordable, but the death benefits are usually capped at $35,000. These policies are great for older people or those in poorer health, who might have difficulty getting another type of policy, but still want something to help their loved ones cover their final expenses.
Joint life insurance will provide coverage for both you and your partner. You can choose from a universal or whole life policy. But the death benefit is usually not paid out until both policyholders have passed away. A lot of couples will choose this option because it is cheaper than purchasing two separate policies. And the underwriting and rates are based on the younger and healthier partner.
How Much Coverage Do You Need?
To determine how much coverage you need, you’ll have to take into consideration two major factors:
Income replacement – Decide how many years of income you would like to replace for your family, then take that number and multiply it by your annual income.
What will need to be paid off – Add up all the debt that you currently have, including mortgages, credit card debt, bank loans, and any other debt. Once you’ve calculated that amount, add it to the income replacement amount.
Looking For A Life Insurance Policy?
Whether you are young or old, it’s important to consider life insurance to protect your loved ones and your assets. And it doesn’t matter if you are in your 20s or 50s. There are many great affordable policies to choose from that will provide enough money for your family. 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.
Choosing a life insurance policy can be very confusing, since there are so many different options to look into. But we can help break down what you need to consider when searching for a policy! First, you’ll need to decide between the two main types of policies: whole life insurance and term life insurance. And while term life is excellent for people on a budget, there are situations when whole life is simply a better deal. So what’s the difference between the two, and is whole life right for you?
Difference Between Term & Whole Life
Both term life and whole life require you to pay a monthly premium. In return, your family will get an agreed-upon amount of money (your death benefit) when you pass away. The major difference between these types of policies lies in the length of the policy.
When you purchase term life insurance, you will be asked to choose the amount of time that your coverage will last, typically anywhere from ten to thirty years. After that amount of time, your policy will expire. If you outlive the policy, your family will not get your death benefit. And you will then have to decide whether to buy a new policy or extend your term. In both cases, your policy will likely be more expensive because you will be older and might have developed health conditions.
The possibility that your policy will end, and you will have to extend or repurchase is a major drawback of term life. With whole life insurance, though, you might pay higher premiums. But the policy will cover you for the rest of your life. Not only that, but many whole life policies have a cash value – like a savings account – attached to the policy that accrues money over time.
As we mentioned above, whole life can be more expensive than term life. But the difference in price is often not actually all that much. And again, with a whole life insurance policy, you will build a cash value account that grows over time. And the account is tax-deferred. So you can essentially use your policy as a type of bank account.
You should also consider whole life insurance over term life if:
You’re close to 50– You might think that if you’re heading towards 50, or a little older, term life is the way to go. But if you’re only around 50, you have a good chance of outliving a term life insurance policy. And then you’d have to pay an extremely high premium to get a new policy (that might have a smaller death benefit), since you will be buying/renewing your policy at a much older age.
You have children in college– If you have a child or children in college, a whole life insurance policy with added cash value is a great option. With one of these policies, you can save that money and then give it to your child for tuition.
You’ve been diagnosed with a medical condition– If you missed the opportunity to purchase a term life insurance policy when you were young and healthy, odds are that one will be very expensive if your health is no longer what it once was. In this case, it would probably be smarter to get a guaranteed issue whole life insurance policy. Rather than run the risk of not qualifying for a standard life insurance policy later on.
You have a child with special needs– Whole life is a great choice if you are a parent who has a child with special needs and an existing special needs trust. You can consider survivorship whole life insurance. Which covers both parents but only pays the death benefit after the remaining parent passes away. This is an excellent type of permanent coverage that is a great deal more affordable than coverage for both parents.
You own a business- There are a variety of types of life insurance options available to business owners. For example, you can take out a permanent cash-value life insurance policy such as an indexed universal life policy. With which you can access funds should you need liquidity in case of an emergency. Or if the key employee leaves the company.
Whole life insurance is a great choice for a lot of people. But if you’re not sure which policy is best for you, your best bet is to compare policies from different companies. There are many great affordable life insurance options to choose from that will provide enough money for your family. The best way to find the right life insurance policy is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
There are a whole lot of life insurance policies out there to look into. In fact, there are multiple types of whole life insurance alone, one of them being graded benefit whole life insurance. This type of policy can be good in certain circumstances. To determine if your circumstance is a good fit for graded benefit whole life insurance, you need to review the pros and cons before deciding if it is right for you and your family.
What Is Graded Benefit Whole Life Insurance?
Graded benefit whole life insurance does not require a medical exam.
Graded benefit whole life insurance is a type of policy that will only be paid out in the first 2 to 3 years if the policyholder dies accidentally. These policies don’t require a medical exam or traditional underwriting. And because of this, life insurance companies that offer these policies take a significant risk when providing them. That means these types of policies will generally have higher premiums compared to other types of life insurance policies.
There is a waiting period with graded benefit whole life, typically 2 years, but you won’t lose your money if you pass away during this period. In fact, if you do pass during your waiting period, your premiums will be refunded plus interest ( typically around 10 to 20%) depending on the company.
The 2 Types Of Graded Benefit Whole Life Insurance
There are two different types of graded benefit whole life insurance policies:
Simplified issue– With this type of policy, you will have to answer medical questions to qualify. Because of this, this type of policy will usually have a higher benefit amount.
Guaranteed issue– You will not have to answer any health questions with this type of policy, and you cannot be denied or turned down due to your health. This policy will have a lower benefit amount and is typically more expensive than a simplified issue policy.
Graded Benefit Whole Life and Your Health
Different companies and policies will require different information. If you opt to get a plan that requires answers to health questions, such as a simplified issue policy, it is better to be prepared with what types of questions you can expect. You can expect to answer the following questions (although questions might vary from insurance company to insurance company):
Have you been diagnosed with or received treatment for HIV, AIDS, or AIDS Related Complex?
Have you been diagnosed with a terminal illness?
Do you have a disability that requires the use of a wheelchair?
Are you confined to a nursing home or other facility?
Have you received a diagnosis of heart disease, kidney disease, cancer, diabetes, or another serious illness in the last 24 months?
Have you had a stroke?
Do you have Alzheimer’s or any other cognitive impairments?
Is It Right For You?
Graded benefit whole life insurance is usually purchased by people with serious health problems who might get denied through traditional life insurance. If you have health conditions and are worried you will get denied life insurance, know that you do have the option of a graded benefit whole life insurance policy! Not only will you be accepted no matter what health conditions you may have, but it will provide your family with a substantial amount of financial security when you pass. Having health issues should not stop anyone from protecting their family with a life insurance policy.
If you’re not sure which policy is best for you, your best bet is to compare policies from different companies. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Life insurance comes in many different shapes and sizes, so there’s always a policy that will meet your needs. But how do you know what type of policy is right for you? For example, should you go for a more temporary type of life insurance policy, like term life, which you can purchase for a duration of 10 to 30 years? Or do you want a more permanent life insurance policy that will be in effect until you die, like whole life? When determining the length of your life insurance policy, there are many different factors to consider.
Deciding How Long Your Coverage Should Last
When trying to figure out how long you want your life insurance policy to last, the first thing you should do is consider where you are in life. Are you near retirement? Then you’ll probably only need a short-term coverage option. If you’re younger and have a family, though, you’ll need a policy that will provide income replacement for the next 30 years or longer.
To figure out how long you should get life insurance coverage, consider the following:
Cost: The price of your policy will depend on the type you choose. Term life insurance policies tend to be very affordable, which is why they are so popular. Permanent life insurance is typically more expensive, but it will protect your family for the entirety of your life.
Your age: Life insurance companies take into consideration your age and health when determining your premiums; you should also consider how old you are and how old you will be when your term life insurance expires. If you are young and purchase term life insurance, you’ll probably need to renew your policy or purchase a new one. In that case, you might want to think about a more permanent life insurance policy, such as whole or universal life insurance.
Your major expenses: Do you have a mortgage? How long will it take you to pay it off? When looking for a life insurance policy make sure that it will cover big expenses such as your mortgage, or anything else that could put your family in a financial crisis if you pass.
If You Choose Term Life…
You can choose a term life policy that lasts for as little as 10 years, or as long as 30 or even 40 years. If you are considering a term life insurance policy and are trying to determine how many years your policy should last, consider the following:
10-Year Term– These policies are great if you have refinanced your home or have some other debts that will be taken care of in a few years.
20-Year Term- This is great for young parents who want to provide coverage until their kids are out of college.
30-Year Term– This is generally the longest term available. It’s popular among newlyweds and young professionals, as well as the breadwinners of families.
The best way to find a plan is to compare plans from different companies.
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
