With the many kinds of life insurance policies on the market today, how do you know which is the best policy for you? There are no easy answers – they all require some serious thought and consideration. None of us are very keen on contemplating our own deaths, but such is the first step in finding a life insurance that will meet the needs of your family in the event of your untimely demise.
If you’re like most people in the USA, when you pass away you will leave behind a list of unpaid bills. The price of funeral expenses and sometimes staggering medical bills from your final illness or injury can be crippling to a wife and kids who are already struggling with the loss of a loved one. If you have a long-term financial plan and are properly insured, your life insurance will provide money for your spouse or children to pay those final expenses. Additionally, these funds can be used to pay other debts you leave behind including unpaid credit card debt, mortgages left owing, and other expenses you pay each month like college loans.
Of course, there’s more than a death benefit to life insurance. There are also benefits to owning a life insurance policy which you can enjoy in ways while you’re still living. As the cash value of your permanent life policy grows, you may choose to borrow against it or withdraw from that value to help with expenses like buying a home or paying for your child’s wedding.
The three most popular kinds of life insurance policies sold by insurance companies today are Term Life, Whole Life and Universal Life Insurance.
· Term Life Insurance is a good starting place. This kind of policy provides insurance for a pre-determined period of time at a relatively low cost. If you die during that time period your insurance providers will pay the death benefit to your beneficiary following your death.
Many young people with growing families start with Term Life Insurance because it is among the most affordable options and will do that which life insurance is meant to do – provide for your family in your absence. This kind of policy is usually available in various terms – one to thirty years – and has permanent fixed premiums.
· Whole Life Insurance remains in force for the duration of the insured’s lifetime. Higher premiums are paid according to the terms of the policy and will continue as long as the policy is active. Since this type of policy has an investment component, over time, the whole life policy can build cash value.
Some like to think of these kinds of policies as retirement plans or a way to force themselves to save for the day when they become seniors. Some others see this as the least prudent way to invest.
· Universal Life Insurance is much more flexible than whole life because the insurance company breaks down the cash value of the policy into the insurance component and the savings component and allows the insured to shift money between the two. This policy earns interest.
With a universal life policy, one may have a no-lapse option which allows the insured to enjoy coverage without making monthly premium payments for as long as there is enough cash in the fund to pay the monthly premium. Of course, this option has its downside as it may lead to funding issues and may raise the cost of the policy.
Of course there are many considerations besides the cost of premiums or the rate of return on the cash value of your policy. Men and women over 50 frequently think they cannot buy life insurance at any price because of their age and/or their health. This is not always the case. These days, excellent policies with good coverage are available with no medical exams required. Even smokers and diabetics who have lived beyond their 50’s may find great rates on best life insurance from companies rated in the top ten.
It’s a good idea to do a little online research and get a quote or two before you make any decision about the best life insurance. Ask your friends for leads. Almost everybody has had dealings with life insurance companies. As you look at the many insurance companies, pay attention to ratings and reviews from people who have actually used the company. The best deals in the world are worth little if the company isn’t dependable. If you’re going to provide for your family’s future, get them the best life insurance plan possible.
If you do not currently have a life insurance policy, it’s a good time to sit down with your trusted insurance agent. He or she will be happy to help you evaluate your needs and, once your agent reviews your unique set of circumstances, they will help you determine what the best life insurance plan is for you and your family. Nevertheless, if the questions below describe you and your situation – if you can answer “Yes” to any of these, you should consider coverage sooner rather than later:
· Do you have a spouse or significant other who depends upon you and your work as a provider?
· Do you have dependent children, an elderly parent or a sibling whose care depends in whole or in part upon your contributions to that care?
· Do you own a business?
· Do you own assets like a home, family farm, rental property or vacation place in California or other exotic location?
· Do you have a mortgage?
Obtaining the best price life insurance is a key factor in planning for a solid financial future. None of us wants to die, but we will. Nor will we have the luxury of knowing when that time will come. If people are counting on you for their quality of life, you should consider it your obligation to plan for this unexpected and unwelcome eventuality.
It comes down to a fair trade: your monthly premium payment in exchange for the life insurance company’s meeting the financial needs of your loved ones. Life insurance veterans will tell you, buying the best life insurance policy you can afford from the best life insurance company you can find will give you the security of knowing you’ve done what you must to protect those you love.