logo

Login  

#
#

Vehicle Insurance

#
#

Quick Links

#

Vehicle Insurance Resource Center

Need a Car Insurance Quote?

Life Insurance Quotes | Whole, Universal and Term Life Insurance Quotes


Home » Life Insurance Quotes | Whole, Universal and Term Life Insurance Quotes

5 Questions to Ask when Choosing a Life Insurance Policy

If your family depends on your income, they could suffer great financial hardships when you die. Having a quality life insurance policy is a way to ensure that you can still take care of your family after you pass.

To find a policy that is right for you, get multiple life insurance quotes and compare plans. Once you've decided on a policy, be sure to review it when you experience any significant life changing events, such as the birth of a child or a change of employment.

Determining the amount of life insurance and what type of plan you need depends on your situation. Here are a few questions you can ask yourself and then discuss with your life insurance agent when you are requesting quotes.

 

1. Do you need a life insurance policy?

2. What type of life insurance do you need?

3. How much life insurance do you need?

4. How much does life insurance cost?

5. Are you comfortable with the policy you are choosing?

1. Do you need a life insurance policy?
If you have family members who depend on your income such as children, a spouse or elderly parents, than you probably need life insurance. If you do not have any dependents and you have some money set aside for your debts and funeral costs, than you probably do not need a life insurance policy.

2. What type of life insurance do you need?
First, you need to decide if permanent life insurance or term life insurance is right for you. This depends on your situation.

Permanent life insurance offers coverage throughout your lifetime, with cash value accumulations. This plan provides added security and flexibility. Since permanent life insurance policies build cash value, the money can be used to help meet future goals such as supplementing retirement income or paying for your children's college education. Although you may draw from this cash value account, you will be charged fees and taxes to do so. Otherwise these policies cannot be touched until they are distributed to your beneficiaries upon your death.

A permanent life insurance policy many be right for you if you want to leave an inheritance for a charity or your dependents. It also might be a good decision if your adult children, spouse or elderly parents rely on your financial support.

Term life insurance is cheaper and less of a commitment than permanent life insurance. Since a full permanent policy is generally more expensive, a term life insurance policy can be a more affordable option. Term life insurance is only active until you decide to stop paying into it. Term Insurance provides coverage for a certain period of time, such as 10, 20 or 30 years. It's generally for people who need life insurance just long enough to meet their responsibilities to their dependants, such as young children. If you die during your working years, your family will be provided for through your planned retirement year.

Since term insurance is only for a limited amount of time, you can decide to stop paying on it when you reach certain milestones, such as when your children graduate from high school or college or when your mortgage is paid off.

In addition to permanent and term life insurance, three common types are whole life, universal life and variable universal life. Request free life insurance quotes and discuss your options with an agent to decide which is right for you and your family.

This is a very important decision that should be discussed with an agent or financial advisor. Request free life insurance quotes and discuss your options to ensure that you are not spending more money than you need to and so that your family is not left with financial hardships when you pass.

3. How much life insurance do you need?
Generally, you can calculate the amount of life insurance you need by taking into account your annual income and figuring how your family would provide for themselves in the event of your death. Your income will need to be replaced for at least the first few years after your death. Also take into consideration any debts or funeral costs you'll be leaving behind.

4. How much does life insurance cost?
Many factors are taken into account when determining the cost of a life insurance policy, so the amount can vary greatly. Company life insurance policies are usually cheaper, but you will typically only be covered for the period of time you are actually working for the employer. There may also be a period of time that must pass before you are eligible to receive benefits.

If you are self employed or you want to provide more for your family after you die, you will want to look into private life insurance polices. Some items that affect the price of a policy are whether or not you have high risk factors, such as if you are a smoker, overweight or have a preexisting medical condition. In addition, policies can range in costs depending on the agents fees, types of coverage and limits. This is why it is important to shop around and get multiple life insurance quotes before deciding which is best for you and your family.

5. Are you comfortable with the policy you are choosing?
Shopping around for the right insurance quotes is as important. Shopping online for life insurance is easy and finding the lowest rate is great, but consider what's at stake. Does the low rate that you found cover everything that you need in a policy? Are you comfortable with the company and do you understand every portion of your policy? This is important for your peace of mind and for your family's security.

Don't be afraid to ask any questions or to get a professional financial advisor's opinion. It's your life and your family's future, so make sure it meets all your needs. Protect and care for your loved ones.

 

Get your Free Life Insurance Quotes Today!

Insurance Articles

Get an Auto Insurance Quote

* Find a local insurance agent
* Or get a car insurance quote online
* Or call (877) 604-0313

#
#
#