Is there a need to have life insurance? Of what benefit will life Insurance to me and my family? Should anything happen to me, will having Life Insurance Company come to my Aid? These questions are worth answering.
Thus, I will answer it in a nutshell. Life insurance is the best protection you have against sudden and unexpected passing. So, if you care about your family, the best way to show it is to buy insurance coverage.
However, the question you should ask yourself is, how and where do I get the best life insurance with the benefits and the coverage I want at a premium price that I can afford… That’s what you should put into consideration.
That said, to make things easier, I suggest you compare different life insurance quotes and find the best rates for a policy.
The benefit of Having Life Insurance
We all know how important life insurance can be in providing security for a growing family and support in times of unforeseen need Of a truth, you wouldn’t want to leave your dependents financially disabled. So providing them with financial security, you need to buy life insurance.
Thus, Life insurance gives pays your family even when you pass on. The payout amount is the accumulation of a certain free-tax benefit covered by the Insurance policy bought.
What Life Insurance Money Is For
Money paid from an Insurance coverage of policy can cover funeral expenses, pay household bills, college tuition, personal debt, and loans, including buying a home and other life expenses the payout can fund.
Elements of Life Insurance Coverage
There are things to look out for when you are discussing life insurance policy or coverage. These are terminologies you can’t do without. And they are key to insurance policies such as;
- Term – When you talk about term, you are talking about how long a life insurance policy lasts. Some are temporal while others are permanent. It depends on the purchaser’s choice.
- Premiums – Premium is life, a fixed amount paid to keep servicing your policy. Its paid monthly or annually. And the premium amount paid depends on several factors such as health, age, gender, location, etc.
- Death benefits – When you talk of Life insurance, you must bring in “Death Benefit”. Thus, a death benefit is a money paid to the dependents of the deceased for final or funeral expenses. But it’s not limited to afterlife expenses. Some insurance companies make your death benefit available for borrow even when the beneficiary is still alive.
Before you Buy a life Insurance; Check your Needs and your Assets
Sincerely, the reason people buy life insurance is that they have a need or things important to them they want to cover.
For example, you might need life insurance because of the funeral expenses, others might need it because they want to live to spend money for their dependents. However, If I’m to say, a young person with no dependents should have nothing to do with life insurance.
But if you have dependents, and your family’s livelihood depends on your salary. Then you will need to consider buying Life Insurance.
So, the first step before buying Life insurance is to access and check what your needs are and what financial obligation lies before or after you. You might need life insurance to set off needs like;
- Securing your future salaries
- Paying up your mortgage balance
- Offsetting personal debts
- Funding dependents College tuitions
- Providing for your funeral expenses
- Making provision for offsetting other essential bills.
After the needs assessments, the next is to see how much insurance policy that can fund your needs.
How can it be? You can do that by noting what your current income or assets are and what your needs for future financial responsibility will be.
When you subtract the asset from the need, the amount you come up with is the amount of life insurance policy you would need to buy.
Doing this will help save your family members or dependents from unexpected hardship should anything happen to you or your sources of income.
Types of life insurance
Is life insurance in kinds? Yes, because everyone’s needs are not the same. To help solve the differences in people’s needs insurance companies came about types of Insurances:
- Term life Insurance – This is an insurance policy offer for a set period.
- Whole Life Insurance – as the name implies, it’s last for a whole lifetime. Sometimes it’s called a permanent life insurance policy.
Term Life Insurance Vs Whole Life or Permanent Life Insurance
Term Life Insurance as earlier noted has a time limit and does not come with cash value. As a result, its premium is cheap than that of Whole life insurance.
More so, whole life insurance in most cases has a cash value equivalent to its death benefit, it can come as a payout or borrow to foot other expenses.
Though most people that buy term life insurance do so because they have a future bill or expenses they want to take care of.
What is the Average Cost of Life Insurance Policies?
The average cost of Life insurance policies ranges between $9.00 monthly payment to thousands or hundreds of dollar annual payments. However, the cost of a life insurance policy highly depends on several factors such as;
- Health Condition
- If the Insured Smokes and a couple of other factors.
Life Insurance Company Reviews
The first and foremost thing to do before buying an Insurance policy from any Insurance company is to search and compare quotes.
With that, you can determine which company offers the best policies. Many insurance companies consider a good number of things. Some offer favorable underwriting for people with health challenges and sometimes for smokers.
Best Life Insurance Companies
At this point, I will list a couple of the best and top life insurance companies that offer the cheapest guaranteed whole life insurance products. Added with favorable underwriting, cheap premium, easy benefit payout, and lots more other reasons, customers consider them as the best in the Industry.
- Colonial Penn
- Globe Life
- Gerber Life insurance
- Northwestern Mutual
- AARP – New York Life
- New York Life