Insurance is an all-important safety net to have in all facets of our lives. Whether it’s a policy to protect our cars or to protect our homes, it’s that lovely little helper in the event of an unforeseen circumstance. This includes a life insurance policy that is there to protect your loved ones upon your passing. However, life insurance coverage is more than just covering funeral expenses. Let’s take a closer at what these policies have to offer, where you can find them, and the differences in certain lines of coverage.
Term Life Insurance
If you are looking for quotes for life insurance, don’t hesitate to explore the litany of options that fall under such policies. One of the most common forms of life insurance is a term life policy that offers an insured party coverage for, just that, a term. This is usually done within the 10 to 30-year range for a certain amount of coverage. This is usually considered the more affordable option and is recommended as a safety net for younger people to sign up because of the affordable rate which is even lesser for healthier individuals.
Term life insurance does not build up cash value, but it’s an easy way to gain some peace of mind during the year when you’re building up for retirement, paying off a mortgage, or putting away funds for your child’s college tuition. Term life insurance can ensure your loved ones are taken care of financially upon your passing.
Whole Life Insurance
Whole life insurance is considered the most common type of permanent life insurance, providing a set amount of coverage for as long as you live, so long as you pay your premiums. The amount of coverage you need could depend on your personal situation, but it does come with the added benefits of financial resources. Insured parties may borrow from their whole life insurance policy as a form of income replacement, or it may act as a rainy day fund.
Keep in mind, the cash value of the policy will be adjusted if you deduct, impacting the death benefit to your beneficiaries upon your passing. Websites through insurance carriers can provide insight into the level of coverage available to you. The cash value tends to grow very slowly and often doesn’t increase at all during the early years of your life insurance policy. You’ll pay fees and finance charges on this life insurance loan as it were, and you’ll need to make sure your policy doesn’t lapse because of a lack of funds.
No Medical Exam Life Insurance
When looking through websites, some may offer a life insurance product that does not require a medical exam as part of an application process. That’s because some fear they won’t have enough coverage if they are a smoker or have an underlying medical condition. No medical exam life insurance policies are also known as guaranteed issue or simplified issue life insurance.
This usually requires some additional information provided through a health-related questionnaire in place of the medical exam. A guaranteed issue policy won’t require the completion of an exam or a questionnaire but can expect to see lower life insurance coverage options available. This type of life insurance usually comes at a higher cost based on the lack of medical history to base coverage and premiums on.
If you’re in search of the best coverage for you and your loved ones, don’t hesitate to ask for suggestions from friends and family. However, the best resources are available online to assess the terms of life insurance coverage. Using the resources available to you, you’re more likely to find a good option based on monthly cost and the financial needs of the moment and the future.