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What is Spouse Life Insurance?

Purchasing a life insurance policy is a great decision when you have a growing family, but you have to remember that your life insurance policy only covers you. Your family will not receive a death benefit if your spouse dies unless they have their own life insurance policy. But what if your spouse does not have a policy? Is it possible for you to take out a life insurance policy on your spouse?

What Is Spouse Life Insurance?married couple making hearts together with their hands

Spouse life insurance is a type of policy that covers your spouse or partner, leaving a death benefit for you and your family if they die. A partner can purchase the policy on their loved one, including a husband, wife, common-law spouse, or domestic partner. This type of life insurance falls into the category of dependent life insurance, which generally provides less coverage than standard policies.

How Does Spouse Life Insurance Work?

If you decide to take out a life insurance policy on your spouse, you will still have to go through the underwriting process – but only if you choose a permanent or term life insurance policy that requires you to do so. Your life insurance company will have to verify that your spouse is eligible to be insured and assess how much of a risk they are so that they can determine their coverage amount and premium rate. Once you have provided all of the required information, your insurer will offer coverage if your partner meets their requirements. 

Reasons To Consider Buying Life Insurance On Your Spouse

If you are conflicted about whether you should purchase a spouse life insurance policy, consider the following reasons why it might be a good idea: 

  • Spouse life insurance can replace their income- If your spouse is the breadwinner of the family or head of the house, life insurance is very important to have, so that your family would not have to struggle if your partner were to pass away. Their income probably covers many expenses, including mortgage payments, and you don’t want to lose your house or struggle to pay any other household bills.
  • You have debt– If you have shared debt or loans, you also share the responsibility of repaying them, even if your partner passes away.
  • You’ll need help running the house– If your spouse takes care of the household chores, including taking care of the kids, cooking, cleaning, and laundry, and they pass away, you might need to pay someone to help with all of these things, and life insurance benefits can help with this. 

Can You Take a Policy Out On Your Spouse Without Their Knowledge?

white question mark in a green circle
You cannot take out a life insurance policy on your spouse without their consent.

Both partners in a family need to be covered by life insurance in case the unexpected happens, since each partner has a role and adds value to the household in different ways. But purchasing a policy to cover your partner is something you need to discuss with them, especially since it is illegal to purchase life insurance coverage for your spouse without their knowledge. You must first get their consent and their signature for the policy – even only getting verbal consent to sign the policy can be considered insurance fraud.

If you’re looking for life insurance for you, your partner, or both of you, the best way to find the most affordable policy is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with good rates, and give you ideas on 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 less. 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

Need Extra Cash? You Might Be Able to Borrow From Your Life Insurance Policy

Sometimes things happen in life, and you could end up with debts that are difficult to repay without a little help. If you’re looking for some extra cash, have you ever considered that you could borrow from your life insurance policy? Yes, it is possible to borrow from your policy – that financial cushion is not just for when you pass away. But before you go digging into your policy, there are a couple of things you need to be aware of: for example, you can only borrow from a permanent or whole life insurance policy. Not only that, but there are rules you need to know so you don’t put your family’s future financial security at risk. 

Does Your Policy Allow You To Borrow?

illustration of money bills
Permanent life insurance policies have a cash value, which you can borrow from.

One of the first questions that needs to be addressed is if your life insurance policy actually allows you to borrow from it. The short answer is: as long as your life insurance policy has a cash value, you can borrow from it. Permanent life insurance policies, including final expense, whole life, and universal life insurance all have cash value. 

Term life insurance only provides you life insurance for a fixed period of time, generally anywhere from 10-30 years, and provides a payout if you pass away during that term. Because there is no cash value in a term life insurance policy, you cannot borrow against it. 

If you have a permanent life insurance policy, your cash value is like a savings account that builds interest over time, and as you pay your premiums, the cash value increases. Each life insurance company will set their own cash value amount and let you know when you can use it. The downside to having one of these policies? They are generally more expensive than term life policies, because they will cover you for your whole life, and because of the cash value you accrue with them.

How Borrowing From A Life Insurance Policy Works

When you are in need of cash, you can consider borrowing from your life insurance policy’s cash value; how much you can borrow from it depends on the size of your policy and how much you have paid into it. You will first have to request a loan from your policy’s cash value, because you are not actually taking money out of the cash value: the insurance company is extending a loan to you and using your cash value as collateral. The loan is also not recognized by the IRS as income, therefore it will not be taxed. 

Unlike a bank loan, life insurance policy loans do not affect your credit and there is no approval process necessary – it’s your money to use! The more money that you have paid into your policy,  the lower your payments to pay back the loan will be. It is important to note that interest on the loan will begin to accrue immediately, at a rate determined by the insurer. The rate is typically lower than that of a bank. 

Paying Back A Loan

black alarm clock placed on top of hundred dollar bills
It is best to pay back you life insurance loan as soon as possible so your policy doesn’t lapse.

Most life insurance companies will have a flexible payback schedule, but it’s in your best interest to pay back your loan as quickly as possible, because the loan amount can be deducted from the death benefit that your family would receive in the event of your passing. Not only that, but the policy can lapse if a substantial amount is taken out and not repaid. Once it lapses, you essentially lose your policy, leaving your family without any financial security in the future. 

When Should You Borrow From Your Policy?

You can borrow from your policy at any time, but you should only do so if you:

  • No longer need the death benefit- If you are retired and have no major expenses, and if your family is financially secure and you do not need the death benefit, a loan against your policy can work for you. In this situation, you can also consider surrendering the policy and collecting the accumulated cash value. 
  • Don’t qualify for any other loans- If you cannot get a loan from a bank or any other source, your life insurance policy is a good option. One of the pros is that you will not have your credit checked or affect your credit score when you apply for the loan.
  • You can pay the loan back– It is always nice to take out a loan when you need cash, but if you do so from your life insurance policy, you will need to pay it back or lose the policy. If you know you can pay it back, taking out the loan when needed is a no-brainer. 

If something were to happen to you, your family would be facing emotional hardships, as well as financial ones. Life insurance is a great way to help your loved ones with those financial hardships: the money they receive will help pay for expenses related to your death, and any other debts or bills they have. There are many different kinds of life insurance policies 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.

Yes, People Over 65 Can Find Affordable Life Insurance!

As you head into a new chapter in your life, and look forward to retirement, you’ll have a lot to think about. For example, you’ll need to switch from private health insurance to Medicare, and figure out how to live on a fixed income; with all of this going on, you might overlook the importance of having life insurance at this stage in your life. Life insurance for people 65 and older is important, because it provides you additional coverage for those “what ifs” in life – but you might be thinking that it’s not possible to find an affordable life insurance policy at your age, or that you might not be able to buy one at all. Rest assured that is not the case: there are options available to you! 

How Much Life Insurance Do You Need?

older caucasian woman holding a red question mark
Before purchasing life insurance, you need to figure out how much coverage you will need.

As we said, having a life insurance policy is important for older adults, but how much coverage do you actually need at this stage in your life? The amount of life insurance that you need will depend on what you want covered in the event of your passing: for example, if you still have mortgage payments or other debts that need to be paid off, you need to take those into consideration when choosing your coverage. 

To work out exactly how much coverage you’ll need, think about your current income, as well as what your final expenses are likely to be, as well as possible nursing home costs that will not be covered by Medicare, and any other unpaid medical or hospital bills. Keep in mind when doing these calculations that the average funeral costs around $10,000 to $15,000 depending on where you live.

Your Life Insurance Options

Life insurance rates are based on your age, health, and the amount of coverage you need. The older you are, the more expensive life insurance premiums generally are; however, that doesn’t mean that there are not affordable options out there for people over 65.

Term Life Insurance

Term life insurance policies are a great option because you get to choose how many years you would like to be insured for: you can generally choose a policy that covers you for anywhere from 5-30 years. These policies are also very affordable, and provide higher benefit amounts for older adults than no medical exam policies do. These policies are best for people who are in relatively good health, and want to cover big expenses for a few years.

Permanent Life Insurance

This type of insurance is best for people who are in good health and want lifelong protection for big expenses. The only downside to permanent life insurance policies is that they are more expensive than any other types of life insurance. Just like with term life insurance policies, you will have to undergo a medical exam to qualify for coverage, and if you are not in great health, you could be denied or charged more in premiums. 

Final Expense Life Insurancepeople carrying a white casket with white flowers on it

If you just want enough money to cover your funeral expenses (which can be $10,000 or more), a final expense policy, or burial insurance, is your best option.  This type of policy 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 you will not need to undergo a medical exam to be approved for a policy.

No Medical Exam Insurance

If you are not in great health or have some serious medical conditions, you have the option of choosing a no medical exam policy. You will not have to undergo a medical exam to be approved; some companies will still require you  to complete a short medical questionnaire, while others will have a no-questions-asked policy. The only downside to no medical exam policies is that they are generally more expensive, because your life insurance company will be taking you on as a risk without knowing your health status.

How To Find An Affordable Policy

magnifying glass with an eye in the middle and a yellow background
The best way to find an affordable life insurance policy is to research and compare life insurance policies.

As previously mentioned, your rates will be determined based on your health and your age, which means a life insurance policy will be more expensive for you now as an older adult than it would be if you were younger and healthier. However, you can lower your rates by living a healthy lifestyle, including keeping any medical conditions under control with medication or exercise and changes to your diet. The same goes for if you are overweight: if you lose the extra pounds before you apply for your policy, you could save almost 50% on your premiums.

If you’re looking for the lowest rates possible, the best way to find them is by comparing life insurance policies from different life insurance companies. Each life insurance company has different criteria for their applicants, and one may consider a health condition more serious than another. To make comparison shopping much easier, and to find the right life insurance policy for you and your specific needs, work 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.

Level Term Life Insurance: What It Is and How It Works

Term life insurance policies are a popular pick for many Americans, because they are generally the most affordable and convenient type of life insurance policy. Not only that, but there are multiple kinds of term life insurance policies to choose from, so most people will be able to find one that is right for them. Among these many options, level term life insurance is probably the most popular, because with one of these policies you can get a large amount of coverage for a very low premium. If you want to ensure that your loved ones are financially secure when you pass, level term life insurance might be one of the best options to consider. 

What is Level Term Life Insurance?

a family of four walking on the beach smiling
Level term life insurance is great affordable life insurance for families who have accumulated debt.

Just like other types of term life insurance policies, level term life insurance is a pure life insurance product, meaning there is no cash value component. You purchase a policy for a specific term, or time period, typically 10 to 30 years, and if you pass away during that time, your family will receive the agreed-upon death benefit. The name “level term” simply refers to the fact that your premiums and death benefit will remain the same throughout the policy’s entire duration. This type of policy is a great choice for people who require a lot of coverage at very affordable rates, like young families who have accumulated a lot of debt. 

How Does Level Term Life Insurance Work?

When you apply for level term life insurance, you will be asked about your current health and your health history; depending on the insurance company, you might need to undergo a medical exam to determine your eligibility and rates. The exam is always paid for by the insurance company and will include checking your height and weight and answering questions on a health questionnaire. 

Once you’re approved, you can choose the length of your policy, and the death benefit you would like to leave your family when you are gone. Again, the death benefit will remain the same over the life of the policy, as will your premium payments.

When your policy reaches the end of its term, you will have the option to either renew your policy, buy a new one, or convert it into a permanent life insurance policy. If you choose to renew it, your rates will be based on your current age, which means your premium rates will be higher than they were when you purchased the policy. If you choose to convert your term policy into a permanent life insurance policy, you might not have to undergo another medical exam, but the rates will be more expensive for a permanent policy than for a term policy. 

The Difference Between Level Term & Whole Life Insurance

illustration of a scale
Level term life insurance and whole life are similar, except whole life is permanent and more expensive.

Term life and whole life insurance policies are very different from each other; the only thing that they have in common is that once the policies are issued, the premiums and death benefit will not change for the life of  the policy.

One of the main differences between the two is that whole life insurance is a type of permanent life insurance, meaning that the policy remains in effect for your whole life, as long as you pay your premiums. The other major difference? Whole life policies come with a cash value component that will earn interest over time. Once you accumulate enough cash value, you can use the cash value to buy additional coverage, or even to pay your premiums. It’s important to note, though, that whole life insurance costs anywhere from 5 to 15 times more than level term life insurance, which is  why level term life insurance tends to be a much more popular choice. 

How Much Does It Cost?

Just as with any other life insurance policy, premiums for a level term policy are based on a number of factors including your age, health, medical history, and other risk factors like your hobbies and driving record. That means the younger and healthier you are, the lower your rates will be; your rates will also be affected by the amount of life insurance you’re applying for and the length of the policy term you require. The best way to find the most affordable policy is to compare policies from different life insurance companies in your area. 

Pros & Cons Of Level Term Life Insurance

Level term life insurance is very popular, and it has some great features, but it also has its drawbacks, so you have to weigh your options carefully. For example, if you want coverage as a replacement for your income in case of your passing, level term life insurance is ideal, but it wouldn’t be a great option if you wanted lifelong coverage. Consider the following pros and cons before purchasing a plan:

Pros

one hand putting money into another hand
Level term life insurance is the most affordable life insurance plan that is easy to manage.
  • Cheapest form of life insurance for most
  • Predictable financial protection
  • Premiums and death benefits remain the same throughout the policy term
  • Easy to manage and understand

Cons

  • It is not lifelong protection so when it expires you might need to buy a new, more expensive policy
  • No cash value component
  • Premiums are not refunded if you outlive the policy

If you are considering a level term life insurance policy, you should first consider how much coverage you will need, how long you need the policy for, and any riders you would like to add on. 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 I Need A Million-Dollar Life Insurance Policy?

Who couldn’t do with a million dollars, right? You might dream of making that much money, or of leaving that amount to your family so they won’t have to worry about money after you’re gone – and if you’re shopping for life insurance policies, you’ll find that million-dollar policies exist so that you can provide that to them. But is a policy that big right for you and your situation? Before considering a million-dollar life insurance policy, you’ll need to consider your needs and your eligibility.

Who Should Get A Million-Dollar Life Insurance Policy?

Million-dollar life insurance policies are just what they sound like – policies that promise a $1,000,000 death benefit to your family members in the event of your passing. As long as you pay your monthly premiums and do not let your policy lapse, or lie during the application process, your family is guaranteed a million dollars when you pass. 

In general, your life insurance policy should cover 5-10 times your salary, so if you earn about $100,000 a year, then a million-dollar policy might be the right choice for you. However, a million-dollar life insurance can also work for you if you earn less and want to cover:

house made out of wood with coins stacked up next to it

  • Large debts, such as a mortgage and student loans
  • Child care and dependent expenses
  • Funeral expenses
  • Your children’s education

 You will need to factor in all of the above and estimate your future expenses to see how much coverage your family will need further down the line. 

How Much Does A Million-Dollar Life Insurance Policy Cost?

Life insurance premium rates are always dependent on a number of factors, including your age, health history, smoking habits, and more, but you might be surprised to know that even million-dollar policies can be very affordable. If you are young and healthy, a policy can cost you as little as $35 a month, or a little over $1 a day.

Another factor that will help determine the price of your premiums is the type of policy that you choose, whether it be term, whole life, or universal life insurance. Term life insurance will be the least expensive choice of the 3 types because there is no cash value included with the policy. The benefits of term life insurance include:

  • Lower premiums
  • Guaranteed death benefit (as long as premiums are paid)
  • Choice of 10, 15, 20, 25, and 30-year policy term
  • Premium prices are locked in for the entire policy term 
  • Renewable at the end of the initial term

But if you choose to go with a whole life or universal life insurance policy, you will have cash value that builds over time, which you will have access to at any time.

What Are The Eligibility Requirements for a Million-Dollar Policy?

If you are considering a million-dollar life insurance policy, be prepared to give some information to the life insurance company you have chosen; they will want to assess your risk to determine if you will qualify for that large of a policy. Not only will you have to pass medical underwriting, but the company will also look at:

  • Your age– Most insurance companies will issue a million-dollar policy that is 40 times your annual income for applicants under 40, 25 times for people ages 40-60, and 10 times for people ages 60-70.calculator with a pen near it
  • Your income– Most insurers, though, will offer benefits that are anywhere between 10 and 30 times your annual salary, with some variation based on your age.
  • Your health– Any current and past health conditions will be considered.

Looking For A Life Insurance Policy?

If you are looking for a million-dollar life insurance policy to help protect your family’s financial future, you might find that you are eligible for one, and that it is more affordable than you thought it would be. But if you do find that a million-dollar policy is not the right fit for you, don’t worry: you can find another affordable plan with great coverage with the help of a life insurance agent. 

There are many different life insurance companies with different coverage options and prices, which is why it is important to compare all of your options, and the best way to do this 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.

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