Home insurance Know your Term Life Insurance Quotes and Why You Need It

Know your Term Life Insurance Quotes and Why You Need It

12 min read

Want to plan ahead and secure the people you love financially? Life insurance may be just the right answer to that. Do you already know what life insurance is and how it works? Many have been hesitant in availing life insurance because they’re not sure about how insurance works and how it can benefit them.

Life insurance protects your loved ones by providing them with lump-sum payments that are tax-free payment after you die or within a period of time. It offers financial security as it replaces lost income and covers expenses. There are different types of life insurance and how you choose which will be for you depends on your circumstances and needs. Your age, health, medical history, gender, and lifestyle will also determine how much your life insurance costs.

If you do not know whether you need life insurance or not, you can ask yourself this question: “Will my family and other loved ones be financially affected if something happens to me?” If you answered yes, it’s high time that you consider learning more about insurances and availing one. You may probably have insurance paid through your job, but it is not enough. The coverage of the insurance ends when you resign or leave your job.

There are four types of life insurance.

  • Term life insurance

Typically, term life insurance policies are for main breadwinners, homeowners, stay at home parents, and business owners. It covers a specific period of time at a fixed amount of insurance. It can help replace income. In an unfortunate event of a death, term life insurance pays tax-free benefits to your family or beneficiaries. You can modify your term life insurance policy to address your changing needs.

Also, in term life insurance you may be qualified for a No-Med Exam policy. You may answer a number of detailed health, financial, and lifestyle questions instead. This may or may not determine the term life insurance quotes you will be getting.

  • Permanent or Whole Life Insurance 

This insurance policy is for people who will be proving an inheritance to survivors, high net worth individuals, and can also be for people who plan their funerals ahead and want to pay for it themselves. However, this insurance policy can still be the right one for you depending on your needs and conditions.

Permanent or whole life insurance its coverage runs for your whole lifetime. Some other types of this can build cash value as time passes by. The costs of this insurance policy are guaranteed to be the same as what was proposed the first time you availed of this insurance policy. It will not increase over time. Moreover, some permanent or whole life insurance policies have a feature that lets you pay for a specific period of time only until you need not pay any more. It helps with income replacement and provides supplemental income. This insurance policy can also assist you with estate planning. As these have a feature where you only pay for a limited time, it also offers an optional fund that you can pay beyond your regular insurance. This side cash fund can build over time.

  • Participating Life Insurance

This insurance policy is a type of permanent or whole life insurance. The difference is that you become eligible in receiving dividends. The coverage of participating life insurance is also guaranteed for a lifetime, together with your premiums.

The dividends that you will receive can be used to buy more coverage, or reduce the premium you pay annually. You can also choose to receive them as interest inside the plan or insurance policy.

  • Universal Life Insurance

Universal Life Insurance is a flexible type of insurance policy permanent or whole life insurance. They differ in universal life’s flexibility in being able to combine protection and savings. You can also choose which guaranteed death benefit your beneficiaries will be receiving. When you make payments above the original cost of your insurance, it earns a tax-preferred interest.

Death benefits are one of the most common reasons why people choose to avail of life insurances. People want their beneficiaries or loved ones to be minimally impacted and fully protected when they die. Although, this cash benefit can also be used for different reasons:

  • End-of-Life Costs Protection

Medical and funeral expenses can be costly especially for outstanding hospital bills. You can protect your loved ones against this.

  • Future Long-Term Plans

Although it may still be far from the present, retirement and long-term care for your elderly parents and spouse can be one of your considerations now.

  • Charitable option

Some people may not have or may not want a specific beneficiary from their family or loved ones. There can be different reasons for this. What you can do with your cash benefit is to choose a foundation, a museum, or a project. Make them as your beneficiary and have your insurance provider donate the death benefit to them.

There are different requirements you need to accomplish and present for a life insurance quote.

  • Your income level and occupation are needed.
  • Information on medical health conditions is to be submitted. This needs to be as specific as possible.
  • Your height, weight, cholesterol levels, blood pressure, and other general information on your health will also be asked.
  • The amount of your outstanding debt on mortgages, loans, and such will also be requested.

The cost and amount of insurance you need can easily be calculated.

The amount of insurance you need can be calculated through simple math after answering questions in your health, income, and the different requirements as mentioned above. The same goes for the cost which will be based on your calculated insurance needs.

In the event you have a chronic illness such as Diabetes, expect to pay more for life insurance coverage. Says Matt Schmidt of Diabetes 365 ” life insurance companies will always view a person with Diabetes as a higher risk, compared to person who doesn’t live with a chronic illness. Life insurance for diabetics is still affordable, and pretty easy to obtain. Do not be discouraged in trying to find coverage, as you’ll most likely find out it’s less expensive than you originally imagined. Click this link: https://www.simplyinsurance.com/term-life-insurance-quotes/.

You cannot really put a financial value on how you want to protect your loved ones when you are gone, but it is always best to take the step towards protecting them. It is always important to be prepared as none of us really knows what may happen later, tomorrow or in the near future.

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