You know you need life insurance but actually understanding what you are looking at has been the real problem when you sit down to actually purchase it. With term life, universal life, whole life, and a ton of different other options it may seem like a large task, but for most people getting life insurance can be very easy.
For the vast majority of people they should only look at getting term life insurance. The inexpensive nature of term life insurance gives you the most insurance coverage for the lowest price, even from the top insurance companies. This happens for a bunch of reasons but the simplest explanation is that term life insurance is just basic insurance. You pay a monthly premium and the insurance company covers your life for a predetermined amount of money.
What Does “Term” Mean?
The term in term life insurance is there to explain how many years the rate for your premium is locked in. So if you have a 30 year term policy you will pay the same premium for the entire thirty years. The best thing you can do to understand you policy is to list out all the parts of the policy. For example, a 30 year term policy with $500,000 of coverage and an annual premium of $900. So each year you pay $900 and that payment will not change for thirty years. In exchange the insurance company agrees to pay out $500,000 if you were to pass away. At the end of thirty years most companies will give you a chance to continue coverage but you will pay a much higher premium.
What If I Do Not Qualify
If you do not qualify for term life insurance, whether for health, occupation, or personal activities, or if your term life insurance rates are too high you do have other options. There are guaranteed issue policies which do not require a health examination and other forms of life insurance that can be less expensive in very specific circumstance. You should always get term life insurance quotes before you try any other form of life insurance because the cost per dollar of insurance is so much lower than any other form of life insurance.
No matter what form of life insurance you choose to go with, the most important thing is that you get life insurance to protect your loved ones.