life insurance coverage Archives

How Long Should My Life Insurance Policy Last?

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: money bills

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.

Need Help?

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.

Can You Have Too Much Life Insurance Coverage?

Is there such a thing as too much life insurance? If you’re shopping for life insurance, one of the questions you might be asking yourself is, “How much life insurance do I need?” Well, the answer is that your coverage should meet your specific needs. But more is not necessarily better, since the higher the coverage amount you purchase, the higher your premiums will be. To choose the appropriate amount of life insurance coverage for you and your family, there has to be a balance between how much you want to spend and how much coverage you want. But if you’re thinking that your policy has more coverage than you need, you do have the option of reducing your coverage, which will allow you to also save on premiums.

How Much Life Insurance Do You Need?

When trying to decide on the amount of coverage that you need for your life insurance policy, remember that it depends on your specific situation. The amount of coverage you need will depend on your plans and goals for your future and the future of your family, and on how much money they need now and will need in the future.

How To Determine How Much You Need

To be more specific, to determine how much life insurance 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.

Finally, to make sure you aren’t overpaying for a policy that is bigger than you need, subtract the current value of your estate from those two numbers. This will help you get a more accurate idea of how much your family will need in the event of your passing.

To give you a good baseline, many life insurance experts generally recommend that you multiply your annual salary by 10 and choose a policy of that size. That way you know that your family will be taken care of for at least a few years, and will have a replacement for your income to cover their debts and expenses.

magnifying glass with an eye in it — *The best way to find a great plan is by comparing plans from different life insurance companies.*

Finding The Right Type of Life Insurance

Is It Time to Review Your Life Insurance Coverage?

A lot of people consider buying life insurance a one-and-done thing. And sure, once you purchase a policy, your family will be financially protected, as long as you keep paying your premiums. But with that being said, there are certain situations in life when you should review your life insurance policy, and decide if you need to increase your coverage, decrease it, or even change policies.

When Your Finances Change

Have you recently lost your job? Started a new job? Gotten a raise? Well, while your income doesn’t affect your life insurance premium, it does affect how much coverage you will need to make sure your family is financially taken care of when you are gone. For example, if you have gotten a raise, your lifestyle might change, and your expenses might increase, which means you will need to get more coverage for your family than you might currently have.

Growing Your Family

Whether you’re thinking about adopting a new child, fostering a child, having a new baby, or getting married and bringing stepchildren into your family, you will need to think about your life insurance coverage. More people in the home means that you have more mouths to feed, more schools to pay for, and more debt.

Term Life Expires

If you purchased a term life insurance policy 20 or 30 years ago, your life is bound to be very different now from what it was like then, including in terms of finances. So if it’s time to consider renewing your term life insurance policy, you should re-evaluate your needs, since you might need a bigger or smaller policy.

The Same Time Every Year

You always need to review your policy when your life changes, but you should also try to do so at the same time every year, such as the date that you purchased your policy. This date will be a good time to make sure that your automatic payments are going through, double-check your billing account information, evaluate your coverage amount, ensure you have the correct beneficiary listed, and check that everything else in your policy is correct.

Need Help?

Life Insurance for Dads: 4 Things To Know

If you’re a dad, you’re probably the go-to guy in your family for a whole lot of issues. Your family relies on you every day, probably more than you even know, so what would they do if something were to happen to you? Aside from dealing with the immense grief of losing their husband and father, they would also struggle financially without you.

Unfortunately, though, studies show that an estimated 1 in 4 men do not have life insurance, and many are not even sure what the purpose of a policy is. But before you write off the need for life insurance, or before you begin searching for a policy if you are planning on purchasing one, there are some important things you need to know.

1. Your Employer’s Life Insurance Is Not Enough

puzzle with a missing piece — *Employer life insurance is usually not enough to help your family when you are gone.*

A lot of employers offer life insurance to their employees for a very low monthly cost. You might be tempted to think that this coverage is enough, and you won’t need another policy, but the reality is most of the time employer-based life insurance simply doesn’t provide enough coverage for the average family. Many studies show that you should have a policy that is at least seven to ten times your income, which is generally not possible with employer-based life insurance. In addition, if you leave your job, you will lose that life insurance policy.

2. Children Are Expensive!

This will probably come as no surprise to you, but raising children is not cheap. According to the US Department of Agriculture, the average cost of raising a child from birth to age 17 is almost a quarter of a million dollars! And this does not include the cost of college tuition, if you are planning on helping them with that. So consider what would happen if you weren’t around to help. Fortunately, life insurance is a great way to help your spouse continue to raise your children and provide for them no matter what happens.

3. Your Spouse Needs Your Help

black and white picture of a married man and woman — *Your spouse will need help with bills and debts when you are gone.*

You took a vow to love and protect your spouse for as long as you both shall live, but those vows should actually go beyond that. Your spouse needs your help now while you’re raising your family, but they would need your help more than ever if you were to pass away. You can make sure that they would be taken care of with life insurance, which can provide help paying the bills, caring for the kids, and more.

4. Coverage Is More Affordable Than You Think

One of the main reasons that people don’t buy life insurance is that they think it’s more expensive than it actually is. In fact, research shows that consumers think life insurance is nearly three times more expensive than it really is, which is why many don’t even look into it. However, what most people don’t know is that a $250,000 10-year term life insurance policy for a healthy 30-year-old man can cost as little as $14 a month! Not to mention, the younger that you are, the cheaper your rates will be, which is why it is important to begin looking into life insurance as soon as possible.

Protecting Your Family

So all you dads out there, remember: 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.

Is It Too Late to Get Life Insurance in Your 80s?

Is it ever too late to get life insurance? For example, what if you’re already in your 80s – would it be pointless to purchase a policy, and would you even be able to? Well, actually studies show that the typical limit set by most insurers for purchasing life insurance is around 90 years old. Buying a policy when you’re at an advanced age will probably cost more than it would if you were younger, but with that being said, it is completely possible to find simple, affordable life insurance that gives you the coverage you need, even if you’re between the ages of 80 and 85.

Why Seniors in Their 80s Purchase Life Insurance

Did you intend to buy insurance earlier in your life and never got around to it? Has something happened now that is spurring you to buy a policy? You’re not alone: there are other seniors in their 80s out there looking for policies, possibly because:

They are being encouraged to do so by family– A child or grandchild might find out that their family member is not insured, and encourage them to purchase a policy or look into buying a policy for them.
Someone close to them has passed away- The passing of a loved one or friend, especially if they have left nothing behind, might make them reconsider life insurance.
They procrastinated– We’ve all been there: everyone puts things off until the last minute at some time in their life. Not only that, but retirement might have come upon them quickly, and they might not have even realized that they were going to lose their employer-based life insurance, and they simply put off looking for a new policy.

What Options Do You Have?

If you find yourself in one of the situations above, and are looking for a life insurance policy in your eighties, you have several options:

Term life insurance is a great option because most healthy seniors over 80 can buy a $50,000 10-year term policy for around $30 a month. One thing to note, though, is that because of your age, you might not be able to renew your policy.
Guaranteed universal life is an option that is similar to traditional universal life, but this type of policy is more focused on the death benefit and length of coverage than on cash accumulation. Most companies that offer guaranteed universal life will require you to purchase a minimum death benefit of $50,000, but some will go as low as $25,000, which is why it is important to compare plans from different companies, so you can review all of your options.
Final expense insurance is very popular because it is generally available to seniors up to age 85, and can provide coverage amounts from $3,000 to $30,000, depending on the age you are when you apply. Final expense is popular because it is easy to purchase and no medical exam is required. It is usually purchased to cover final expenses like funeral and burial costs.

Need Help?

Just because you are older than most people who are looking for life insurance, doesn’t mean that you won’t be able to find an affordable policy. There are many options available that will allow you to leave some money behind for your children and grandchildren, or simply allow you to cover your funeral expenses and medical debts.

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.

Inflation and Life Insurance

It’s no secret that the price of everything has been steadily rising, making it harder and harder to afford even simple things like gas and groceries. And inflation doesn’t seem like it’s going to ease up anytime soon, leaving many Americans worried and afraid – and rightfully so, since it’s not easy to deal with these rising costs.

And here’s another problem: what if you want to financially protect your family in these challenging times with a life insurance policy? As the price of everything rises, will premium rates also go up? The answer depends on whether you already have a policy or not, and what kind of policy you have or want to purchase.

graph going upwards with an arrow above the graph and money around it — *The only time you will have to worry about rate increases is when your term policy expires.*

Will Inflation Increase Your Life Insurance Rates?

If you already have a life insurance policy, have no fear, your rates will not go up despite the inflation. Once your life insurance policy is issued, your rates are locked in for life, whether you have a term policy or a permanent policy. The only time you will have to worry about rate increases is when your term policy expires, and you choose to purchase a new one or renew your current policy.

Will Life Insurance Companies Experience Financial Difficulties Due to Inflation?

If you’re worried that your life insurance company will experience financial trouble during this period of inflation, which will either raise your rates or diminish your policy, you can rest easy. Inflation is generally only temporary, so it’s not likely to create hardship for insurers.

That said, it’s crucial to purchase a policy from a company with an A or higher rating from the national rating services. Avoid choosing a lesser-rated life insurance company, because although you might save some money, choosing a less stable company could end up being a problem for you down the road.

Budgeting For Life Insurance

We get it: the price of everything is astronomical these days, but that doesn’t mean you have to consider getting rid of your life insurance policy or going without one. There are things you can do to fit a policy into your budget, allowing you to still be able to provide for your family when you are gone. Things you can do to cut down on costs include:

Cutting back on gasoline usage
Shopping for your car insurance every 6 months
Paying down or paying off high-interest loans and credit cards
Cutting your spending on groceries wherever possible
Making your coffee at home rather than paying $5 – $7 at your local coffee shop
Cutting back on eating out

Times are tough, and that’s all the more reason for you to make sure you have a life insurance policy to protect your family’s financial future. After all, 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.