Insurance is an important safety net to have to cover just about all facets of our lives. We have policies to protect our car in the event of an accident or protect our home in case of a pipe burst. However, we seem to neglect one form of insurance in particular: the policies on our lives. Yes, you may have been hesitant about exploring life insurance policies, not wanting to think about the subject matter or just thinking you can’t afford it. However, finding the right life insurance coverage can be a painless process.
Understanding Life Insurance Policies
If you’re looking to get a life insurance policy in place, you’ll want to know a little bit of terminology that comes with exploring quotes. If you’re venturing for a cheaper option, you may want to look into term life insurance quotes through licensed providers. Term life insurance provides coverage for a specific term length with the opportunity to renew the policy or find a new one at the end of that coverage. However, a term life policy only pays out a death benefit, the amount of coverage given to a beneficiary upon your passing, during that time period.
Term life insurance also doesn’t have a financial element to it. Whole life insurance policies afford as much coverage as you need for the entirety of your life. You’re able to lock in a premium based on an assessment of your overall health. This premium will stay in place for the length of coverage so long as you remain consistent with your death benefit. Whole life insurance also allows insured parties to borrow against the policy if there are any financial circumstances that may require it. If you’re looking to avoid having your life insurance premium skewed by your habits and health, final expense insurance can cover just your funeral costs upon your passing.
Transparency in the Process
The goal of life insurance is to provide insured parties with peace of mind that their families will be taken care of upon their passing. When going through the life insurance quote process, be sure to be as transparent as possible about yourself as a risk and the different needs you have for a policy. This process starts with providing your personal information. Then, insurance companies will ask for an understanding of your medical history, as well as your habits. For example, tobacco users may pay higher premium payments because of the risk.
Insurance companies will also ask about your family’s medical history to know if they need to be wary of other issues in your specific situation. Previous or current coverage may also impact your ability to capitalize on discounts for particular insurance products. You may undertake an additional cost if you go from term life to whole life insurance. As mentioned, final expense insurance will avoid the need for a medical exam but comes with limitations in terms and conditions.
How Much Life Insurance Should I Get?
The amount of life insurance you need is based on your unique situation. For younger people, term life insurance may be the preferred route because of the lower premium amounts that are usually offered in the quote process. However, locking in a premium early for an entire life insurance policy may be the way to go. If you are building your family, you may want to go for the whole life or universal life policy route to afford some peace of mind or even potential retirement savings down the line for your family’s future. This coverage amount can also be adjusted as time goes on. Remember, life insurance coverage is important to have, but you can adjust as your needs change over time.
