How to Find the Best Life Insurance
Making sure you have the right insurance for your car, house, and health are usually top priorities for a lot of people. It can be easy to forget to make sure you have the best life insurance for you. Knowing the types of policies there are and being able to compare them will help you get the coverage you need.
Use a comparison tool
You probably compared a couple of different quotes before you signed up for homeowners insurance, right? You can do the same thing with life insurance. Insurance Specialists will ask you some demographic questions and about your health history. You also select the amount and type of coverage you want.
After you’ve filled everything out, you can see how different plans might fit into your budget and what will best set up your family for financial security. You’ll get connected with an agent and choose a plan online.
Here are some of the most common types of life insurance you might want to consider getting.
Term life insurance
This type of insurance is only valid during a specified period of time, say 30 years. Your beneficiaries, or people you designate to receive the payout from the policy, will only get the money if you pass away during that specific term.
These are usually the cheapest policies around. It is worth noting, though, that the money that you pay toward the policy will only be paid out upon your death. Other types of insurance may allow you to borrow money on your policy before then.
Whole life insurance
Unlike term policies, whole life insurance will cover you for the rest of your life, in what is known as a permanent life insurance policy. It also differs from term policies, in that all of your monthly payments, or premiums, add up into cash value. That cash increases over time and you may be able to take out some of the money and use it during your lifetime.
Once you sign a policy, your premium amount is locked in for the rest of your life. So you don’t have to worry about it ever going up.
These policies are more expensive than term policies, but having access to additional cash may make it the best life insurance policy for you.
Universal life insurance
This type of permanent insurance comes with a lot more flexibility than the other ones. Unlike whole life insurance policies, you have more say in how much you’re paying each month. After having the policy for a while, you may also be able to change the amount of the death benefit.
Final expense insurance
As the name implies, this type of insurance helps your loved ones cover any final expenses you might have. This can include things like funeral or burial costs, or also any outstanding medical bills. The average cost of a funeral is well over $7,000. So making sure your family doesn’t have to worry about money while grieving can be a great investment.