Life insurance is rarely considered a fun subject, but ignoring the need for life insurance can cost the people who rely on you dearly. Instead of just putting up a form for cheap term life insurance quotes and leaving you to it, I felt it was necessary to help you get a better grasp of life insurance and how to get a policy that meets your needs.
Why You Need Life Insurance
Life insurance is vital to any financial plan where someone else will be inconvenienced or deeply affected by the loss of your income. The obvious example is a family, with children, where one or both spouses work and the family budget is dependent on that income. If you are in that situation and do not have life insurance PLEASE get quotes today. The form on the side of this pages allows you to get your quotes for free without getting a million phone calls. Use it and make sure your family is protected.
Where it does not become so obvious is for people who do not have children or are single. If you are in a situation where someone would be inconvenienced financially if you were to pass away you need to get a policy that will cover that inconvenience. This includes a spouse or a family member paying for your funeral.
Another example is if you have debt. I know that if I were to exit this earth that I do not want to leave owing anybody anything. If you have debt it is the right thing to do to have an insurance policy that can pay off the debt you owe and make that person or institution financially whole.
Once You know why you need a policy, the next step is to figure out which policy works best for you.
Standard Forms of Life Insurance
While there are many different ways to customize a life insurance policy there are really just two standard types of life insurance; term and permanent policies.
Term Life Insurance
Term policies are the most popular form of life insurance because, for most people, they are the most affordable. There are three pieces to a term policy that you need to understand:
- The Term – This is the number of years that your policy will be in effect at the agreed premium. Most people get a 20 year or 30 year term policy. This means at the end of 20 years your policy will end or you can renegotiate your premium with the insurance company.
- The Face Value – Face value is the amount of coverage that you have. So a $500,000 policy has a face value of $500,000. While this may seem obvious to you, some people get this confused with the final piece, the premium.
- The Premium – The premium is the amount of money that you pay each payment to keep coverage. Most people choose monthly payments, but you can frequently get small discounts by choosing quarterly, bi-annually, or annual premiums.
With this information at hand, you can fully understand what it means when you are looking at a 30 year term policy, with $500,000 face value and a $75 per month premium.
For the vast majority of people a term policy is the right choice. Dave Ramsey always pushes level term life insurance because it is the most affordable. If someone is selling you a policy that has an “investment” built into it and it seems more expensive than you were expecting, that is because they are selling you another form of life insurance.
Permanent Life Insurance
Permanent policies are much more complicated than their term life cousins. While a term policy lasts a specific period of time, permanent policies are designed to last your entire life. The insurance companies define this as until you are 100 years old. So whenever you see any type of permanent life insurance your will be covered till age 100.
The other big difference from a term policy that you will see in permanent life insurance is that they have some sort of investment account attached to them. This means that part of each of your premiums is deposited into an account and invested somehow. Some policies will put them in a savings or money market account while others will invest in in stocks or bonds.
The investment account that attaches to your permanent policy makes the premiums on these policies much higher than term policies. So be careful that you aren’t spending so much on the policy that you are passing up opportunities to invest in other places.
There are also other forms of life insurance that are available in the marketplace. Some of these include:
- Burial Insurance – Burial insurance, which may also be referred to as either final expense insurance or funeral insurance, is a type of coverage that is typically purchased by those who are between the ages of 50 and 80 years old for the purpose of paying their final expenses. These can include the cost of their funeral, as well as related costs such as their burial plot, headstone, flowers, transportation, and obituary notices. Today, these expenses can easily add up to $10,000 or more – so having a burial insurance policy available, so that loved ones do not have to dip into savings – or worse, put these costs on credit – can be extremely helpful. In many instances, the face amount of coverage on a burial insurance policy will be between $5,000 and $50,000. Therefore, finding affordable quotes on this type of coverage is usually not difficult.
- No Medical Exam Insurance – In some cases, a person may not be able to qualify for a medically underwritten life insurance policy. This could be due to having a health condition such as diabetes or heart issues. A no medical exam life insurance policy, as the name implies, will not require an applicant for coverage to undergo a medical examination as a part of the underwriting process. Because of that, there are many people who have health conditions that may still be able to qualify for coverage with this type of plan. In addition, because there are no medical exam requirements for the insurance underwriters to review, these policies can also often be approved in a much faster period of time as compared to medically underwritten policies. In many cases, a no medical exam policy may be approved within just a few days – or even faster. It is important to note, however, that due to the fact that many of those who apply for no medical exam life insurance are considered to be risky in the eyes of the life insurance carrier, the premiums for this type of coverage are higher than that of comparable medically underwritten coverage. Often, the amount of the premium could even be two to three times higher. So, while a no medical exam life insurance policy may not be considered as affordable, it could provide an individual the only opportunity to obtain the coverage that they need.
- High Risk Life Insurance Policies – A question I get frequently is from people who do not qualify for affordable rates on standard life insurance policies. From a life insurance company these applicants fall into the classification of high risk. Now this may seem harsh but if you have an ongoing illness, work in an occupation, or have a hobby that raise the chances of you passing away prematurely then the insurance company is going to adjust your rates to compensate for that added risk. This does not mean you are completely exempt from getting an affordable policy, but you will need to arm yourself with more knowledge than the average consumer. Use my guide on high risk life insurance policies to help you get the information you need.
- Smokers Life Insurance – find that purchasing life insurance is an expensive endeavor. The biggest problems that most smokers face is that they work with an agent who does not really understand their market. This means that, while they are taking all the right steps for non-smokers, the agent is not looking for rates with the correct companies. When looking for affordable life insurance for smokers it is necessary to work with an agent that can specializes in that market and can get you the best rates.
- Diabetic Policies – Diabetics face special problems in getting insured. Because some of the insurance companies do not fully understand how to rate life insurance for diabetics policies, the premiums for diabetics can get extremely expensive. It is important to work with an agent who know what companies will treat you the most fairly and give premiums based off real risk.
It is still important, though, that when seeking burial insurance, no medical exam insurance, or any type of life insurance coverage, that you research and compare quotes and insurers before making a decision on your coverage. This is because, just like any other important purchase, policies and carriers can differ – sometimes a great deal – in the way that they price their products. And, when considering that you could be paying a life insurance premium for many years, you will want to ensure that the premium is affordable – as it could make a significant difference over time.
Life Insurance Companies
Getting the best policy means working with a company that can not only pay out but will treat your loved ones well if something were to happen to you. Rating a life insurance company will ultimately come down to the financial stability of the company and how they treat their customers. In my top 10 best life insurance companies we take a look at all the top companies in the United States and give you honest feedback of how each company does with financial stability and customer service.
How Much Does Life Insurance Cost?
The cost of your life insurance will depend on several different factors – and, while some may be out of your control, others can be, so you can keep the price of your premium relatively affordable.
First, the type and the amount of the coverage that you choose will be key criteria in the price of your policy. Certainly, the more coverage you choose to purchase, the higher the premium is likely to be.
In most cases, going with a permanent policy such as whole life or universal life will cost more – at least initially – that will a term insurance plan. However, because the premium on a permanent policy is usually locked in for life, it could end up to be more cost effective in the long run if you plan to keep the policy.
Typically, if a person is considered to be of average health, then they will likely be provided with a Standard policy class. This means that their premium would be “average” or in line with other policy holders who are of average health. If, however, an individual has health that is not as good as average – yet it is not poor enough to decline for coverage – then he or she would likely be placed into a Substandard policy class. This usually means that the premium for that policy would be higher.
In cases where an individual has exceptionally good health, as well as a family history of excellent health as well, they could be given a Preferred policy class. In these instances, the policy holder may be charged a lower than average rate for their life insurance, which can in turn, make the life insurance policy much more affordable.
It is important to note that, while all life insurers have some way of qualifying their applicants, the way in which they do so it typically not identical. This means that an individual could apply at a particular insurance carrier and be given a Standard policy rate. However, the very same individual could apply at a different life insurance carrier and be given a Substandard policy rate – with a very different premium price. With that in mind, it is important to compare plans prior to moving forward. Having an ally on your side that can assist you with making these comparisons can be extremely helpful.
How You Qualify for Life Insurance
When applying for life insurance, it will be important to qualify for the coverage that you are seeking. This will usually entail fully completing an application for coverage that will ask for your personal and health information. For example, some of the information that is required on the application for coverage will be your:
- Contact Information
- State of Residence
- Height and Weight
- Marital Status
- Smoking Status / Tobacco Usage
- Alcohol Usage / Frequency
- Medications Taken
- Health History
- Family Health History
- Foreign Travel
- Other In-Force Life Insurance (And the Amounts)
You will also typically be required to take a medical examination as a part of the underwriting process. This consists of meeting with a paramedical professional who will take your heart rate and blood pressure readings. You will also be required to give a blood and a urine sample. These samples will then be tested by the life insurance company for certain health risks. The paramedical professional will also ask you more in-depth health-related questions.
Should you have any type of adverse health issue such as diabetes, then it is likely that you will be required to submit some additional condition-related paperwork to the insurance company that will ask you questions regarding your condition, as well as about any medications that you are taking and ways in which you are managing and / or controlling that condition.
In addition, it is also possible that the insurance underwriters may wish to review your medical records. These may be obtained from your primary care physician. If you have certain medical conditions, and you see a medical specialist, records may also be obtained from that specialist. These records will help the underwriters to get a clearer picture of your overall health condition and history.
By submitting as much information as possible about your health – as well as about how your are managing your health – you can help to keep your life insurance premium more affordable. Working with an agency that specialized in higher risk cases and that has access to many different insurers can help in finding affordable life insurance quotes.
Where to Find the Best Premium Quotes on Cheap Life Insurance
Finding the cheapest life insurance quotes may not always seem easy. However, the best way to go about this is to work with either a company or an agency that has access to more than just one life insurance company.
In doing so, you will be able to more directly compare – in an unbiased manner – the policies, the benefits, the carriers, and the premium quotes of the coverage that is available to you, and from there, you can then make a determination as to which one will be the best for you and your specific needs.
When you are ready to do your life insurance comparison shopping, we can help. We work with many of the top life insurers in the industry – and we can assist you in locating the plan and the carrier that is right for you. We can do so quickly, easily, and conveniently – all from your home computer – and all without the need to meet in person with a life insurance agent. So, when you are ready to move forward, all you need to do is use the form on this page to get your instant insurance quotes.
Should you find that you still have any questions about cheap life insurance quotes – or even if you have a question about life insurance in general – please do not hesitate to contact us directly. We can be reached by phone, toll-free, by dialing 888-229-7522.
We know that the purchasing of life insurance entails a number of different variables – and finding affordable life insurance quotes can oftentimes seem impossible. But, the good news is that today, there are many options available to you. We can help you with answering many questions that you may have, including which type of coverage may be right, how much coverage should you buy, and which of the many carriers may offer you an affordable plan for your budget. So, contact us today – we’re here to help.