comparing life insurance policies Archives

Questions To Ask Before Buying Life insurance

When it comes to life insurance, there are two things that you can be sure of: you need it in order to ensure your family’s financial stability in the future, and you have a lot of decisions to make when choosing a policy. It takes a lot of thought – and it should: it’s a big, important commitment. So if you’re unsure how to narrow down your choices, and how to decide which policy is right for you, you should first ask yourself the following questions; having the answers in your mind can make the process of comparing life insurance policies and buying the right plan much easier.

How Much Coverage Do I Want?

suitcase full of money stacks — *Before buying life insurance, you will need to determine how much money will be enough for your family when you are gone.*

When determining how much coverage you will need, you have to ask yourself who depends on you and what kinds of debts you have. Typically, the death benefit on your policy should equal up to 10 times your current annual income, but it is important that you take the time to write down all of your current financial obligations, such as your mortgage, childcare expenses, car payments, and any other future obligations. Will you want to leave an inheritance when you pass away? Help your children pay for college? Buy a house? All of these things will need to be taken into account when choosing your benefit amount, and the best way to calculate your life insurance needs is to get help from a trained agent who can help you determine how much coverage you will need.

How Long Should I Have Coverage For?

Once you choose the amount of coverage you need, you will have two basic types of life insurance coverage options to choose from: term and permanent.

The difference between the two is that a term life insurance policy will cover you for a specific amount of time (typically 10, 20, or 30 years), while a permanent life insurance policy will cover you for your whole life. The advantage to term life insurance? It’s cheaper, and can be a great, affordable option if you want to provide income for your family to cover short-term debts and needs. For example, do you have a 30-year mortgage that your spouse would have difficulty paying off if you die? Then a 30-year term life insurance policy is perfect to cover those 30 years until the mortgage is paid off.

If you are unsure if a term life insurance plan will provide enough coverage, look into a permanent life insurance policy, which would allow your family to live comfortably, even after your debts are paid. These policies have a cash value growth potential and can replace income, assist with your retirement planning, and more. Comparing all of your different options will give you a better understanding of which policy is better for you and your family, and how much you can afford.

How Healthy Am I?

african american woman stretching touching her foot with one hand and the other hand backwards in the air — *Ask yourself how healthy you are to get a better understanding of how much premiums will be; the healthier you are, the cheaper it will be.*

This question is important in determining which type of policy is better for you. Life insurance rates are based on multiple factors, and your health history is one of them: the healthier you are, the cheaper your premiums will be, and vice versa. But even if you do have health conditions, there is no need to worry! With a guaranteed issue life insurance policy, such as simplified issue life insurance, you will not be turned down because of your health; you will not have to answer medical questions, or undergo a medical exam.

Will Premiums Change Over Time?

This depends on which kind of coverage you go with. With term life insurance, your premiums start out lower than with permanent coverage and stay at a fixed rate for the term, but if you choose to extend your policy, your rates will go up. With whole life insurance, as long as you don’t let your policy lapse, your premiums are guaranteed not to increase for the rest of your life. If you choose to go with a universal life insurance policy, your premiums will increase with age, but if you have accumulated cash value, this can cover the increases. These are all things you will have to consider and compare when researching life insurance policies.

What Happens If I Don’t Die During A Policy’s Term?

If you opt to get a term life insurance policy, there is a good chance that you will survive the specific term, and if you do not pass away during the term, no one receives the death benefit. You do have the option to keep your policy and convert it into a whole life insurance policy, but you need to be aware that your rates could go up, especially if you develop health conditions. This is why it is important to consider from the start if a term life insurance policy is your best option, or if a permanent life insurance policy is better for your circumstances.

Choosing the right life insurance policy is necessary in order to ensure that your family gets the benefits they need. It might seem complicated and frustrating to find the right one, but it can be done, with some help. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Final Expense VS Life Insurance

Most people have lots of plans for their life, but one thing people don’t often plan for is their funeral and the cost of their final expenses. While these aren’t the most pleasant plans to make, you should at least be prepared financially for when the time comes, and the best way to do that is by purchasing a life insurance policy. You can choose a final expense insurance policy, which is a type of whole life insurance that provides coverage for your end-of-life expenses, or you can purchase a policy that will provide coverage for more than just your final expenses. For example, if you want to leave behind a substantial amount to cover larger expenses, or possibly leave an inheritance in addition to simply covering your funeral expenses, you might want to look into more traditional life insurance. To figure out what kind of life insurance you need, you should compare the different types of policies, and take into consideration your current and future expenses.

Final Expense Coverage

The average funeral costs $10,000; you can choose to purchase a life insurance policy that will specifically cover these expenses, and will help relieve some of the stress and pain of a difficult time for your family. This type of policy, called final expense insurance, or burial insurance, covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and as long as you pay your premiums, your policy will continue until the day you pass away. The cost of this type of life insurance policy will depend on your health and age when you purchase the policy.

Life Insurance Coverage

If you are looking for more traditional life insurance coverage, there are several types of policies to choose from, including term life and whole life. The difference between the two is that term life insurance policies will cover you for a specific amount of time (or term), usually 10, 20, or 30 years, while whole life plans will cover you for your entire life. Term life is ideal if you want to provide coverage for a major but temporary expense, such as a 30-year mortgage, while whole life is better if you’re ok with paying a little more to build cash value and not have to worry about your coverage ending. Either of these policies, though, will ensure financial stability for your family after your passing.

A term or whole life insurance policy will provide your loved ones with one lump sum, or a monthly annuity to your family after your passing, and offer more coverage than final expense insurance – typically anywhere from $250,000 to $1,000,000, or more!

white drawing of a person with 3 arrows pointing in different directions — *When deciding which plan is best for your family’s needs, it is best to compare plans from different companies.*

One thing to be aware of with more traditional life insurance policies is that, unlike with final expense, you will have to undergo a medical exam before you are approved so that the insurance provider can evaluate your risk. If you are older and/or have certain health conditions, you will pay more for monthly premiums than those who are younger and healthier.

Deciding Which Plan Is Best

Final expense life is a great option for those who are older or are in poorer health, and who don’t have or can’t get a traditional life insurance policy. Having this type of policy will give your family some kind of financial stability, at least for the unexpected expenses following your death, but it is important to note that final expense insurance only covers short-term expenses and does not provide anything more. If you want to provide more money to your family to replace your income, or to cover large expenses like a mortgage or college tuition, you should look into a different kind of life insurance policy. The best thing to do is to assess your current expenses, as well as future expenses, to figure out which plan is best for your family, as well as how much coverage you will need.

Purchasing life insurance coverage for your family is a responsible choice, and an important decision. While the thought of dying and not being with your family is difficult, imagine the suffering they will be going through – the last thing you want is for them to suffer financially, as well. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence.

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

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.

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.