When it comes to life insurance options, there are many.
The are numerous types of life insurance coverage.
There are a large number of life insurance providers.
The topic of life insurances choices is rather broad.
What if you’re just trying to get an overview of some of the forms of life insurance?
Well, some basic information about common types of life insurance can be found with a little bit of research. Life insurance is one of the most important purchases that you’ll ever make for your loved ones. It’s vital that you find the best policy to meet your needs, but it can be difficult to decide which kind of policy is going to meet your needs.
We know that it can be confusing trying to decide which one is the best option, but that’s why we are here to help. It’s our mission to ensure that you’re getting the best life insurance at the lowest rates.
The Most Common Option: Term Life Insurance
The most budget friendly type of life insurance coverage is term life insurance. You can purchase this type of coverage for a period that is as short as a year. You can go with a life insurance plan that covers a term of 5, 10, 15, 20 years or more. Many of our younger clients will purchase a 30 year term policy.
One of the best features of a term life insurance plan is that your premiums will remain at the same rate during the period of coverage. This will make your budget planning a lot more simple. Most term life insurance providers will give you an opportunity to renew or upgrade your insurance plan toward the end of your current term of coverage. If your health is good, you may even want to have your term life insurance medically underwritten. This would give you even more budget friendly premiums.
Return of Premium Life Insurance
There is term life insurance that will return your premiums if you are still around to collect them at the end of the specified term of coverage. This is known as Return of Premium Term Life Insurance. This is one of the popular life insurance options for obvious reasons. Except for factors like fees, riders and the like, you will receive a refund of your premium payments at the end of the policy term.
You were responsible enough to make sure that your financial obligations were covered in case of your death, yet if you are still alive at the end of the term, you can take those funds and use them for a new or upgraded policy. You may need to use some of those funds for another purpose and reinvest some of them in a new life insurance policy. It is up to you.
Note: to receive the full return of premium, you will need to keep the policy in force for the full term of the policy. Ex. You buy a a 30 year term return of premium life insurance policy, you’ll need to pay on it for 30 years to get the full premium back. If you stop paying on it sooner, you’ll only get a pro-rated portion of it back.
Universal = Flexible
If you need a flexible life insurance policy, then you may want to go with universal life insurance. This type of policy can be retained throughout your lifespan. You can make adjustments to the amount of benefits that are to be paid out as well as make some alterations to the premium payments.
This type of insurance is rather more costly than term life insurance. It does allow you to compensate for all sorts of areas of growth in your lifetime. This is commonly purchased for individuals that want to have both insurance protection and a savings tools that they can help contribute to their retirement nest egg. This is done by having a portion of the premiums invested in a sub-account that will grow with the market. There is still the cost of insurance so it takes a while for the cash value to build up.
Calculating Your Life Insurance Needs
Aside from determining which kind of plan is best, the next biggest decision is calculating how much coverage your family will need if something tragic were to happen to you. Not having enough life insurance is one of the worst mistakes that you could ever make for your family. There are several key categories that you need to account for to ensure that they will have the money that they need.
The first number that you should crunch is your debts and other final expenses. The primary goal of your life insurance plan is to give your family the money that they need to pay off any bills or other debts that they are responsible for. Before you apply for life insurance coverage, add up your mortgage, student loans, business loans, or any other bills that they would be responsible for. Once you’ve added all of those numbers, make sure that your life insurance plan is large enough to cover those bills.
The next number that you should look at is your annual income. The secondary goal of life insurance is to give your family the money that they need to replace your paycheck if you were to pass away. If you’re one of the main income earners in your home, then your loved ones would struggle financially if something tragic were to happen. Your life insurance policy will give your family members the money that they need to get through the tragic time without having to worry about any basic expenses or necessary bills.
Deciding Which Option Is Best For You
Because there are so many different options, it can be confusing trying to decide which kind of plan is going to work best for you and your loved ones. Each of them has different advantages and disadvantages that you should weigh based on your own needs. We know that it can be confusing determining which one you should buy, but that’s why we are here.
It’s our mission to ensure that you get the best plan possible. Our agents can walk you through the process and help you make the decision on which kind of plan to buy. Not only can we help you make that decision, but we can also connect you with the most affordable policy on the market.
Unlike traditional insurance agents, we are a group of independent insurance brokers, which means we work with dozens and dozens of highly rated companies across the nation and we can bring all of the best plans directly to you. Every insurance company is different, and all of them have different medical underwriting and rating systems that they will use. You can get drastically differing rates depending on which company that you get the quote from.
Because there are hundreds of companies on the market, you could spend days calling agents, or you can let our agents do all of the work for you. Fill out our quote form, and we will bring personalized insurance quotes directly to you.
Many Life Insurance Options
Whatever you need to account for in case of your death, there are so many life insurance options available. You are attempting to do the responsible thing by taking care of financial issues that will be left behind after you leave this earth. Do not let life insurance premiums take over your life.
Go with a policy that will cover your needs, yet not empty your bank account. Make sure to explore your options when it comes to life insurance coverage. Do not let yourself get short changed, but make sure to put the best coverage for your life insurance concerns in your budget.
If you have any questions about the different life insurance options, or you want our professional advice on which plan will work well for you, please contact us today. We would be happy to answer those questions and connect you with a quality insurance policy at an affordable price.
You never know what’s going to happen tomorrow, which means that you should wait any longer to get your family the protection that they deserve.
If something tragic were to happen to you, and you didn’t have life insurance, they would be left with all of your debts and major expenses. Losing someone that you love will never be easy, but being stranded with a massive mountain of debt is going to make the situation that much worse. Don’t wait another day to contact our agents and get life insurance protection for you and your family members.