Life Insurance: Compare Policies & Rates

Life insurance policies help you plan ahead and protect your family in the future. While thinking about end-of-life preparations might not be pleasant, it is essential if you have a family or plan to have a family. This is because at the end of your life, there will likely be remaining debts. Instead of placing this financial burden on your loved ones, your life insurance plan will be able to cover it. 

When researching life insurance options such as whole or term life insurance, it is important to keep in mind your goals and needs. These considerations involve a number of factors and priorities. Your future financial plan may be to pay for your children’s education or to preserve the wealth you created. Conversely, you might want to ensure that your family continues to receive an income after losing your financial contribution. Read on to learn more about life insurance and the policies you have to choose from.

Why You Need a Life Insurance Policy:

Considering life insurance policies is important whether you are new to the work force or nearing retirement. A life insurance plan enables you to tie up financial loose ends after you pass away. 

These types of plans are often associated with end-of-life preparations and a task reserved for retirement. However, life insurance is important to consider as early as your first full-time job and is appropriate for both single and married residents.  

Prospective beneficiaries with spouses and dependents who purchase a life insurance policy will be able to take the financial weight of unpaid debts and loss of income off their family’s shoulders. Even if you do not consider yourself a high earner, the total disappearance of it can leave your spouse and children struggling to keep the lights on. 

Even if you are single and have no children or do not plan on having children, purchasing a plan such as term life insurance can still be beneficial. For instance, if you have financial dependents who are not biological children, it can be helpful to establish a financial plan for them for when you pass away. 

Additionally, funerals and other end-of-life expenses can cost thousands of dollars. This can be a financial burden on friends and family whether you are single or married. Fortunately, life insurance can cover these expenses as well as any associated with hospice care. 

Types of Life Insurance Policies:

After deciding to invest in life insurance, you must determine the right type of policy for you and your family. There are several life insurance policies that you can choose from. Continue reading below to discover the distinctions of each policy type.

Term Life Insurance:

Term life insurance is usually the most affordable option. The purpose of this type of plan is to provide coverage and protection for a specific amount of time. Typically, this period is between one and 30 years. However, term lengths depend on your insurance provider. 

Under term life insurance, your income will be replaced with the benefits from the policy. This will be exceptionally helpful to your dependents who will continue paying expenses. Moreover, when beneficiaries receive the life insurance benefit, they receive it tax-free. This means that it is not considered as income.

When obtaining term life insurance quotes, you will find that premiums are relatively low. Depending on your age, the amount of dependents you have and your coverage need, your monthly cost can be as low as $20. A company known as Globe Life Insurance even offers plans starting at $1.

Universal Life Insurance Policies:

Universal life insurance is an option that provides lifetime coverage to dependents. Because it offers such long-term coverage, universal life insurance tends to have higher premiums. However, this type of plan is flexible. Thus, you can adjust your premium payments and coverage levels during your lifetime. 

Under this kind of policy, your premiums count as cash value in addition to covering insurance and a future death benefits. With a cash value component integrated into the plan, you can earn interest on your payments. However, the cash value amount must be spent prior to your death, otherwise it will all go to the insurance provider.

Whole Life Insurance:

Whole life insurance is another option that provides lifetime coverage. As a result, premiums are typically high. Additionally, unlike universal life insurance, this type of plan has fixed rates. 

Whole life policies come with death benefits for beneficiaries as well as a cash value component. 

This type of policy can benefit residents seeking certainty, predictability and cash value. In addition, this might be a suitable option if you have high medical or health expenses.