Everybody can benefit from buying life insurance. Whether you own a small business, have people who depend on your income, or want to provide cash that can be used to cover your end-of-life expenses, life insurance helps protect those who matter to you. So, how do you go about choosing the right type of life insurance? How do you know how much coverage you need?
Here are some things to consider when choosing a life insurance policy.
Cost and Coverage
First, consider whether you can afford to maintain coverage. You’ll want to get quotes for term life and compare those to universal life policies. With a term life policy, your premiums will be more affordable, but your coverage will expire at the end of the term, and there’s no cash value element that you get with universal life insurance. These are all important things to think about.
Underwriting
Underwriting is the process of evaluating a company’s risk to insure your life. Underwriters assess personal information such as your age, gender, health, occupation, and medical history to set your premiums.
If you’re perfectly healthy, you should qualify for preferred or super preferred rates with many insurance companies. However, if you have one or more underlying health conditions, don’t assume you have to pick one company just because they offer you coverage or that you can’t be insured because one carrier denied your application. You may qualify for a guaranteed issue policy.
Prices can vary, but these risks will certainly be a factor:
- Smoking
- Chronic health conditions
- Personal activities
These days, more insurers are offering coverage for those with ongoing medical conditions — when they are under control. Secure Insurance Group can help you evaluate coverage terms and pair you with companies that will cover you.
Related Post: About Whole Life Insurance
Living Benefit Options
The notion that your life insurance policy is a “death benefit only” scenario isn’t true anymore. Many policies offer living benefit options including long-term care, critical illness, or disability insurance benefits. You may also qualify for early payment of benefits if you have a short life expectancy and you need money to help cover end-of-life care.
If the cost of long-term care is a concern for you, tell your agent so he or she can help you secure a policy that includes options for living benefits.
In Summary
When determining what type of life insurance you need, there are many options to choose from. How much can you afford? What coverage is most needed for you? Your age and personal situation will impact these things, and an agent can help you find insurance solutions to meet your needs.
Related Post: How Much Life Insurance Do You Need?
Secure Insurance Group Can Help
If choosing a life insurance policy seems intimidating or confusing, you don’t have to go through the process alone. The licensed, independent agents at Secure Insurance Group are here to help.
We partner with dozens of well-known life insurance carriers, which means you’ll have the freedom to choose the best policy at the best available price. You can count on us. We’ll get to know your financial situation and ask about your goals and budget, so we can help you secure your future and that of your loved ones. Call (417) 883-9300 today!
