Shop & Compare Life Insurance
Find expertly written guides on life insurance, learn how to get the best deals, find the best quotes and browse reviews of the best insurance companies.
What Are Your Life Insurance Options?
Life insurance is a great way to take care of child education costs, mortgage payments or debt. It can even help you save for retirement! The two most common life insurance plans are Term & Permanent. However, there are other options for more specific needs!
Whole is a permanent life policy which has a cash value. The policy covers the entirety of your life and it is typically used to pay off end of life expenses and funeral costs.
Term life insurance lasts for a certain number of years - Usually up to 30. Term plans cost less than Whole life insurance plans and they expire after a certain number of years, when they must be renewed.
Universal life insurance is another permanent policy type. It differs from Whole life insurance because it's more flexible. You can adjust your death benefit or even adjust your premium.
Variable life insurance is another type of permanent life policy. It compromises of two parts; a death benefit and a variable cash value.
Final expense life insurance is a type of whole life insurance. It offers a smaller death benefit which is meant to pay for en of life costs like a funeral, or medical bills.
You can get life insurance for a range of medical conditions, such as; cancer, anxiety, diabetes and strokes.
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What is life insurance?
Life insurance provides a lump sum of money to a named beneficiary, in the event that the insured person dies. In exchange, the insured policyholder pays a premium to their insurance company.
A life insurance policy is a legally binding contract. For the policy to be “in force” the policyholder must keep up with their premium payments, or they risk a claim being denied.
When the policyholder passes away, their beneficiaries receive a payout. Beneficiaries are decided by the policyholder, and they are usually loved ones. However, a life insurance beneficiary can be anyone. Some people will choose to donate their life insurance payout to a charity.
There are different types of life insurance policies, such as Term life & Whole life. Term life policies only last for a set number of years, while Whole life policies cover a person’s entire lifetime.
How Does Life Insurance Work?
Term life insurance policies consist of two main part; a premium and a death benefit. However, Whole life insurance policies have an additional third part, which is called a cash value.
A death benefit is the total sum of money which the insurer guarantees to the life insurance beneficiaries.
A life insurance premium is what the policyholder will pay the insurance company in exchange for their policy. As long as premiums are paid, the insurer must then pay out a death benefit, in the event of a policyholder death.
Finally, a cash value is a living benefit. It can be used as a savings account by the policyholder during their lifetime. On top of this, the cash value can also be used to pay premiums on their insurance policy.
How To Calculate Your Life Insurance Needs
When deciding the amount of coverage that you need from a life insurance policy, you should think about what you need life insurance for.
People buy life insurance for a number of reasons, some of the main ones are;
- Covering funeral costs
- To provide financial security for a family
- Paying off debts
- Paying for college for children
- Covering mortgage payments
Once you know what you would like to cover, you then need to add up your total savings (assets, investments & savings) and subtract that total from the level of coverage that you need. You will then have a figure amount for how much coverage you need from a life insurance policy.
You should also be aware that life insurance needs change over time, just like your life does. When you’re young and unmarried, you may not need as much life insurance as you would do if you decide to start a family.
Once you have a family, you will have dependents to cover, and you will want to reconsider your policy coverage level.
Who Needs Life Insurance?
If you’re asking yourself the question “Do I need life insurance?” then you want to know more about which types of people a life policy is for. The answer is different for everyone.
Whether you need life insurance depends on your goals. However, if anyone depends on you financially then you likely need life insurance. Consider these typical scenarios where people should seriously consider life insurance:
- People who have children – The cost of raising children until they are adults is extremely expensive. To ensure they can still be properly taken care of, consider life insurance.
- People who have debt – Noone wants to pass on their debt to their family after they pass away, life insurance can help you settle outstanding debts.
- People who want to lock in cheaper premiums – Even if you are young and you don’t have any dependents, you make want to buy life insurance early so that you can lock in a lower premium than if you waited until you were older.
- People who own a house with a partner – If you pay a mortgage then you will want to seriously consider a life insurance policy. The death benefit will help your partner to keep up with their mortgage payments.
- People who own a business – If your business would fail without you, then you might want to factor your employees or business partners in to a life insurance policy.
- People who care for others – If you care for an elderly parent, or a special needs sibling, then buying life insurance can ensure that they are still taken care of after you’re gone.
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What Affects Your Life Insurance Rates?
The main factor that affects the cost of your life insurance is your age. Life policies tend to be cheaper for younger people as they are less likely to get sick and they have a longer life expectancy. For every year of age, the average cost of life insurance increases by about 10%
People who have risky hobbies such as skydiving, can expect to pay higher premiums. Additionally, people with healthier and more active lifestyles can expect to pay less for a life policy.
Smokers are at much higher risk for a variety of health problems. Therefore, insurers charge higher premiums for those who smoke. Smokers can expect to pay up to double as much as non-smokers for coverage.
Most insurers will carry out a medical exam to check your general health and wellbeing. It's recommended that you get conditions like diabetes or high cholesterol treated before applying for coverage, if you don't want to pay a higher premium.
How To Get A Life Insurance Quote
When it comes to deciding on the right life insurance policy for you, it's vital that you explore the options available to you. Creating a simple research plan can help you make shopping for a policy a breeze. Follow these steps to find the best coverage for you, at the right price.
Consider Your Needs
People buy life insurance for many reasons. Choosing what costs you will need to cover is vitally important when deciding how much coverage you require.
Do you need to cover funeral costs, debt, living expenses for your family, mortgage payments?
Deciding exactly what coverage you need is an important first step in picking a life insurance policy.
Calculate Your Exact Life Insurance Coverage Needs
Working out your coverage amount can usually be calculated with a simple formula
(Expenses which you want to cover – Value of existing assets that can be used = Your coverage amount)
Shop Around For Multiple Life Insurance Quotes
Don’t just accept the first quote that you find. Compare quotes from a variety of top insurance companies. Every insurer will give you a different rate.
Choose The Best Policy For You
After deciding how much coverage you day and picking the best quote from an insurance company, you will need to make a decision on which policy is the best fit for you.
Decide, and buy it. You can either make your purchase online or through an insurance agent.
How Much Life Insurance Do I Need?
You can calculate how much life insurance you need by adding up all of your existing assets and subtracting all your future costs which you want taken care of (such as mortgage payments, childcare costs or anything else). You will then be left with a figure that is the amount of coverage that you need from a policy.
Where Can I Buy Life Insurance?
You can buy life insurance from a variety of life insurance companies. You should look for an insurer who has strong financial stability. This ensures that your beneficiaries will receive your death benefit.
Do I Need Life Insurance?
Whether you need life insurance depends on your life circumstances and your financial goals. Consult with a financial professional to work out what your life insurance needs are.