What is Life Insurance? Life Insurance is a type of insurance which is called a policy. It will pay a sum of money if you die. They will only cover the death if it falls within the contract of your life insurance policy. Meaning that your policy is still active when you die and the reason behind your death isn’t excluded. You will pay a payment often called a premium monthly, semi annual or annually. This payment goes to the life insurance company to cover the risk. If you die the money will be paid to the beneficiaries that are stated in your policy.
What is term life insurance? Term Life Insurance is one of the more common life insurance policies that will cover you for a certain number of years. Anywhere from 5-30 years is usually the policy period. This type of coverage is the most affordable life insurance you can get because it is only for a certain number of years. Term Life doesn’t accumulate any cash value and it is used strictly for death benefits.
How is the price of life insurance determined? There are many factors that make the price of life insurance vary so much. Age, sex, occupation, past medical history, current medical exam and hobbies are just a few things that are addresses when applying for life insurance. Now each company is going to give you a different price. Some life insurance companies will give you a good price if you are smoker while others won’t so it pays to work with an insurance agent who knows these things.
What is the best type of life Insurance? The best type of life insurance really depends on what you want to accomplish. If you want to protect your family or spouse in the event of your death then term life insurance would be best. If you want a death benefit plus the ability to gain cash value then whole or permanent life would be best. It really depends on what you need and your current financial situation.
How much life Insurance do I need? Usually we like to go by a basic figure of buying at least 10x the amount of your annual income. So if you are making 50k a year then the bare minimum coverage you should buy is 500k of life insurance. You can get this amount of coverage pretty easily through company.
What is guaranteed issue? This is a type of life insurance that has become real popular in recent years. It simplifies life insurance by letting you buy instant coverage without a medical exam or extensive paper work. You can usually buy a life insurance policy like this online through our site within 5 minutes. The most available coverage is around 500k.
Is there life insurance with NO medical exam? Yes, guaranteed or simplified issue life insurance gives you the ability to buy life insurance without ever going to a doctor. This makes it very convenient for online buyers or someone who is very busy and doesn’t want to deal with the hassle.
Can I get life insurance if I have had cancer or other illnesses? Yes, you can get life insurance if you use to have cancer or any other type of major medical illness. It will probably cost you more, but there are companies out there that work with these types of clients.
How do I buy life insurance? Well buying life insurance is a big decision and should be done through a licensed insurance agent. If you know someone then you can start there by talking to them. If you like to do some research then I would suggest reading online and getting quotes from several companies. Usually a broker or independent agent will be able to give you the best selection because they represent several companies.
Why do I need life insurance? Some of the top reasons to buy life insurance are income replacement and funeral costs. Other reasons are mortgage or loan payoff and other large debts that would be a burden for the family to pay. Buying life insurance can be one of the smartest decisions you ever make.
What are the different types of life insurance? Some of the various types of life insurance are term life, guaranteed or simplified issue, whole life, permanent life, variable life, final expense or burial life insurance.
How do I get a good deal on life insurance? The best way to get a good deal on life insurance is to get quotes from all the top companies. There are a few websites including this one that will give multiple quotes instantly. Then you can review all the companies and apply with the one that meets your budget and goals.
What does it mean if someone is the owner of my life insurance policy? In most cases the owner is the person who opened the policy unless otherwise stated in the contract. The owner is the person who can change things in the policy and add or change beneficiaries.
How do a find a good insurance agent or company to work with? You can usually do a little research by looking online or talking to family and friends. We do consider ourselves a great resource to use as well. Make sure whoever you work with has a clean insurance history and is licensed in your state. You want to work with people who lookout for your best interest.
After I find a good price quote on life insurance, what comes next? You will want to apply for this life insurance policy which can be done online or over the phone with your agent. They will submit your policy and in most cases you will be required to get a medical exam and fill out other paper work. Underwriting usually takes around 30 days depending on which company you are working with.
How important is age when it comes to life insurance? Age is very important when determining the cost and underwriting of life insurance. It is always suggested that you buy life insurance as early as possible. This will keep your rates really low and protect you at the same time. The longer you wait the more it will cost you.
What are the fax advantages of life insurance? There are a couple tax advantages to life insurance policies. The first one is that when a life insurance is paid out to the beneficiaries it isn’t usually taxable. The other main advantage is that with policies that gain cash value, are not taxed as they gain this increase in value.
Do I need a financial planner or lawyer for buying life insurance? No, you don’t need a financial planner for buying life insurance. Most people buy term life insurance or guaranteed life and these types of policies are real basic. If you are considering a large whole life policy then you will probably want to talk to a licensed planner. Lawyers are not required when buying life insurance because this is not something they work with on a regular basis.
