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How To Choose a Life Insurance Beneficiary

If you’re searching for a life insurance policy, you probably have a checklist of what you want in a policy, such as affordability and adequate coverage. But have you thought about who you will name as your beneficiary or beneficiaries? You want to make sure that you designate the right person/people as your beneficiaries so that your final wishes are honored. So how should you go about choosing a beneficiary?

Choosing A Beneficiary

When choosing your beneficiary, you should be aware of some special considerations in the case of certain kinds of beneficiaries:

Underage beneficiaries– If you have children, you might want to name them as beneficiaries of your life insurance policy. But you need to be aware that if they are not of age to receive the death benefits, you will have to set up a trust or appoint a guardian to control the money until they are of age.
Unreliable beneficiaries- If the person that you would like to name as beneficiary is not responsible with money, you might want to consider putting the money into a trust or appointing someone else to manage it. In this case, you can provide instructions for how the money should be given out.
Secondary beneficiaries– Sometimes it’s good to have a second beneficiary listed in case something happens to your first beneficiary: for example, if they pass away before you and you don’t get a chance to update your policy. The secondary beneficiary will be listed as a contingent beneficiary, and will receive the money if the primary beneficiary is unable to.
No beneficiaries– If you feel like you don’t want to leave any money behind to anyone, but you have a policy and don’t want it to go to waste, you do have the option of choosing no beneficiary. You can put all the money into a trust, pay off debts, or leave it to a charity of your choice.

When you choose a beneficiary, make sure that you have all the necessary information listed on your policy, such as their name, their relationship to you, and how your insurance company can reach them. In addition, make sure that you notify your beneficiary so that they are aware of your policy; you should also be sure to leave them a copy of any documents they need for when the time comes to claim the death benefits. This will make the process go more smoothly for them at a difficult time.

Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with expenses. Not only will they have to pay for your funeral expenses, but they will have bills to stay on top of without your help, debts, and more. 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 financial security 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.

How to Compare Life Insurance Quotes

Choosing a life insurance plan is not an easy task. You need to make sure that you review all of your options and choose the policy that best meets your and your family’s needs – and there are so many different kinds of policies to choose from that comparing them can take a lot of time. But comparing life insurance quotes from the top-rated companies is the best way to find the right policy that meets your needs and budget. So where should you start?

Getting Started

When looking for a quote, you’ll first need to have an idea of how much you’re willing to spend, and the amount of coverage you’re looking for. For example, do you want a policy that will help replace your income, pay off debts, or meet other financial goals for your family?

Then you’ll need to think about which of the two major types of policy – term life or permanent life – is right for you.

Term Life

This type of life insurance is generally the most popular type because it provides a good amount of coverage at rates that are affordable for many families. These policies cover you for a set number of years of your choosing, usually anywhere between 10 years and 30 years. During this time, if the policyholder passes away, the benefits are paid to the beneficiaries tax-free. The only downside to this type of policy is that if you outlive it, you will have to find another plan, which could end up being more expensive.

Permanent Life

This type of policy includes whole life and universal life insurance policies, which will cover you for the entirety of your life. One of the main reasons that people like this type of policy is that it has a cash value, similar to a savings account. With these policies, a portion of your premiums goes towards your cash-value account, which you can borrow from at any time. This benefit, though, usually means that these policies are more expensive than term life policies.

What Information Will You Need for a Quote?

person's ID — *You will need to provide your personal information, and might have to undergo a medical exam for certain policies/companies.*

Now that you’ve got an idea of the types of policies you will be looking at, you need to know what kind of information you will need to provide to insurers to get quotes. You will need to give them personal and contact information, including your name, date of birth, gender, phone number, email, and health history. Insurers might also ask about your lifestyle, including your health habits, hobbies, and occupation.

In addition, with some types of policy, you will need to undergo a medical exam, which will help the insurer assess how much of a risk you are to insure. You do have the option, though, to choose a policy that does not require a medical exam – just know that these types of policies are generally more expensive and do not usually offer as much coverage.

When you speak to an insurer, it is important to note that the initial quote that you receive will not necessarily be the exact amount you will pay in life insurance premiums once the policy goes into effect. Your initial quote is just to provide you with a ballpark figure of what they think you will pay based on the information given. Once they dive into your health history, driving record, and any other information, they will provide you with a more accurate dollar amount.

Finding the Right Plan

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.

Do You and Your Spouse Both Need Life Insurance?

Do you and your spouse each have your own life insurance policy? Or does just one of you have a policy? The fact of the matter is that you and your spouse depend on each other, and so does your family. That means that life insurance is not something that only one of you should have, despite the commonly held belief that only the top earner of the household should have life insurance. Both spouses bring something to the table, whether they are the top earner, or they stay home with the children, so it is smart for both of you to have your own life insurance policy, each with the right amount of coverage to ensure that you have enough for your family’s future needs.

Stay At Home Vs Breadwinner

caucasian woman holding a baby — *Stay at home parents contribute to the household more than people think, and need life insurance too!*

So if you’re asking yourself if one life insurance policy is enough for your family, the simple answer to this question is that if someone depends on you, you should be covered by a life insurance policy. Even if you’re not working, or are staying home with your children, you bring just as much value to the household as the breadwinner: breadwinners help pay the bills, but stay-at-home parents help run the house and provide necessary childcare.

Just consider this: if your family didn’t have the person who runs the household, imagine how much money would need to be spent on daycare alone, not including a maid to clean your house, laundry services, eating out, and more. All of that adds up to thousands of dollars a year that your spouse contributes to the household, and is something that needs to be taken into consideration when looking into life insurance policies.

Whether you work full-time, part-time, or stay at home, you contribute to the house and your family, so you should each have a life insurance policy that fits your family’s needs. Now that you know how important it is that both of you have a life insurance policy, the next thing to figure out is just how much life insurance you each need.

How Much Life Insurance Do You Each Need?

Now that we have established that both spouses need life insurance coverage, you might be wondering how to balance the coverage between the two of you. To figure this out, you should add up all your day-to-day expenses, the cost of final expenses, child care costs, the amount of money your partner and children would need for future plans, and any income coming into the house that will need to be replaced.

Looking at all of this will help you determine what your family will need to stay financially secure should one of you pass away. Remember, too, that the stay-at-home parent can qualify for coverage based on the income of the entire household.

What Type Of Life Insurance Should You Get?

If you’re unsure what type of policy is right for each of you, speak to different insurers, or a life insurance agent. They can consider your individual earnings and determine how much coverage you will both need. Not only that, but they will also consider what type of life insurance you should purchase for your family’s needs. For example, term life insurance is great for a specific duration, such as to cover a 20 or 30-year mortgage. If you need more coverage, a whole life insurance policy is a permanent life insurance policy that will cover you for the entirety of your life or your spouse’s life.

Another option for couples is joint life insurance, which will cover both of you under the umbrella of one policy. It is important to note that these policies are more expensive than term life insurance because they are a type of permanent life insurance policy. You can choose between a second-to-die life insurance policy, which either covers your estate taxes or leaves a legacy for your children after you both pass away, and a first-to-die joint life insurance policy that pays out to the surviving partner after one spouse passes away.

The best way to find the best policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas of how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

How Life Insurance Works With Your Will

If you have a life insurance policy, you’ve taken an excellent step towards protecting your family’s financial future. And if you’ve taken another step in that direction by writing your will, it is important to understand how your life insurance policy will work with your will. Both will distribute money to your loved ones after you pass, but in different ways. You might be wondering if you should include your life insurance policy in your will, or if you can use your will to distribute your life insurance, so let’s take a look at what you need to know when you have both a life insurance policy and a will.

Is Life Insurance Included In A Will?

last will written in pen — *Your life insurance death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset.*

A will is a legal document that lays out your final wishes and gives instructions for how you want your assets distributed after you pass away. This does not include assets that you own with other people, like a house, and it does not include your life insurance policy’s death benefit. Your death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset. This is because your life insurance payout is meant for your life insurance beneficiary once you die, and is only payable after your death in most cases, meaning it should not be included in your will.

The only time that your life insurance becomes part of your estate is if your named life insurance beneficiaries have predeceased you. In this case, the death benefit will be distributed according to your will and the beneficiaries named in it.

Does Your Life Insurance Need To Have The Same Beneficiary As Your Will?

The person/people named in your will and your life insurance beneficiary(ies) do not have to be the same people. For example, you can name your children as the beneficiaries of your life insurance policy, and at the same time, you can use your will to distribute assets to your spouse, or vice versa. You can also choose to make the beneficiary of both your life insurance and will the same person. Your will and life insurance policy allow you to have multiple beneficiaries, as well as primary and contingent beneficiaries. You can also change these beneficiaries at any point in time, if you need to.

Now that you are aware of the difference between the beneficiaries of a will and a life insurance policy, you know how these documents work differently, and how they can work together. Your life insurance policy will go to your specific beneficiary, and that does not necessarily have to be the same person you name as a beneficiary in your will.

If you’re on the lookout for a life insurance policy, there are many different kinds to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

When Is Whole Life Insurance Worth It?

There are a lot of different types of life insurance policies to choose from, and it can be confusing trying to figure out the right one for you. For example, whole life insurance, a type of permanent life insurance policy, is a more expensive policy than others, but it can be worth it for some people to spend the extra money on. It’s a type of policy that is worth looking into, but if you are considering purchasing whole life insurance, you’ll need to review what these policies entail to see if one might be right for your and your family’s needs.

illustration of a man holding a large bag with a money sign on it — *If you have a high annual income, then a whole life insurance policy is a better fit for your family.*

If you are in the following situations, you might want to consider a whole life insurance policy:

You have a high annual income, typically over $250,000, or have over $1 million in assets. Whole life will provide high coverage options, unlike other life insurance policies.
You want premium rates that remain the same throughout the life of the policy. With a whole life insurance policy, there won’t be any premium rate increases due to your age, health, or any other changes to your circumstances.
You would like the option of a cash value that you can borrow from while you are still alive. Borrowing against your policy would be like taking out a loan without any taxes on it.
You would like lifetime coverage. Unlike with other policies, such as term life insurance, you will have coverage for the rest of your life, which will ensure that your family will receive the death benefits, as long as you have paid your premiums.
If your family will have to pay a lot of taxes on your assets when you pass away, the coverage offered by a whole life policy would be enough to cover them and then some, so your family will not have to pay any estate taxes out-of-pocket.
You have maxed out any other tax-deferred investment options, such as your 401k, IRA or Roth IRA. If this is the case, a whole life insurance policy will be a great way to provide more money for your family.

If any of the above applies to you, you should look into a whole life insurance policy. On the other hand, if you want a cheaper policy, and are only interested in a policy that will cover your debts, like your mortgage, for a limited period of time, a term life insurance plan might be a better fit. Or if you want a very economical policy with just enough coverage for your funeral and some debts, a final expense policy might be best for your needs. It all depends on what your priorities are, and how much coverage you need to make sure your family is financially secure in the event of your passing.

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.

8 Expenses That Life Insurance Covers

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

1. Everyday Expenses

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

2. Therapy Expenses

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

3. Dependent Care

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

3. End of Life Expenses

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

4. Mortgages

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

5. Medical Bills

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

6. Continuing Your Business

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

8. Education Fees

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

Your family has financial obligations that will not go away when you are gone: they will need your help more than ever with their expenses, and the last thing you want them to worry about while they are grieving is money. The best way to understand how life insurance works, and find the right policy for you and your specific needs, is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.