It’s normal to worry about your family’s financial future if you’re the sole provider in your home. Luckily, a life insurance policy can provide you with the peace of mind you need.
Life insurance can help your family cover:
- loss of income
- burial charges
- your children’s education expenses
Of course, not just any policy will do. You’ll have to choose wisely so your family can reap the best benefits in the event of your death.
Perhaps you’re learning about life insurance for the first time. Or you’ve never put much thought into it, but you’d like to start now. The post below has some valuable information for you.
What Exactly Is Life Insurance?
In a nutshell, life insurance is a contract between you and an insurance company. You pay premiums – either monthly, quarterly, or yearly – and the company agrees to pay your beneficiaries a death benefit in the event of your passing.
Your loved ones can use the death benefit however they see fit. They can use it to cover final expenses, pay off debts, or maintain their current lifestyle.
Types Of Life Insurance
There are two primary types of life insurance: term life and whole life.
Term life insurance is temporary coverage that expires after a certain period – usually 10, 20, or 30 years. Your beneficiaries will receive the death benefit if you die during the term. If you outlive the time, your heirs will not receive anything.
Whole life insurance is permanent coverage that does not expire. As long as you pay your premiums, your beneficiaries will receive the death benefit when you die.
There are also several subtypes of each policy, but those are the basics.
Kinds Of Term and Whole Life Insurance
There are three different kinds of life insurance:
- Level term insurance
- Decreasing term insurance
- Increasing term insurance
On the other hand, there are two kinds of whole life insurance:
- Traditional whole life insurance
- Universal life insurance
How Are Life Insurance Policies Issued?
When you’re ready to buy a policy, you’ll have to undergo the underwriting process.
Here, the insurance company will assess your risk to determine how much (if any) coverage to give you and at what rate.
They’ll look at your age, health, lifestyle, and occupation. If you’re deemed a high-risk individual, you may be declined coverage or have to pay higher premiums.
Tips On Picking a Life Insurance Policy
Here are a few tips to help you choose the best one:
- Decide how much coverage you need.
- Evaluate your financial needs.
- Consider your health and lifestyle.
- Choose the type of policy that best suits your needs.
- Get quotes from multiple companies.
Ideal Life Insurance Options For Your Financial Future
Now that you know more about life insurance, let’s look at some of the best available insurance companies.
Allianz Life Insurance
It’s been around for more than 100 years and is one of the largest life insurance companies in the world.
It’s very financially stable and sells impressively focused life insurance products- they’re suitable for you if you seek to plan for retirement and leave a memorable legacy for your loved ones.
It offers the fixed index life insurance program, universal life insurance that comprises a financial aspect with different growth opportunities. The company’s rates are pleasantly reasonable, and it offers unmatched customer service. You can read more in this Allianz Life Insurance Review.
Northwestern Mutual has been around for 165 years and offers a variety of life insurance types, including:
You must work with an agent to buy a policy from it as they don’t sell policies online. You can use its locator tool to spot an agent close to you. As for contact, you can only get help from it by calling the general customer service line or calling an agent.
New York Life
New York Life has been in business since 1846 and offers whole, term, and universal life insurance policies.
It’s one of the few companies that doesn’t require a medical exam for some of its life insurance products. You can get help from it by calling customer service, visiting an office, or using the online chat.
MassMutual has been around for 171 years and offers a variety of life insurance types, including:
Additionally, it provides free-life insurance for income-qualified guardians and parents through its LifeBridge program. Qualifying applicants can receive a whopping $50,000, a ten-year life term policy to assist education costs.
Guardian Life has been in business since 1860 and offers term life insurance and permanent life insurance policies.
It also provides whole life policies to healthy individuals living with HIV. The applicant must meet several conditions:
- They must be free of any AIDS-defining illnesses.
- They must be between twenty and sixty years old.
- A physician specializing in HIV must be caring for them.
- They must be on highly active ARV therapy for several years with consistently pleasing results.
Life insurance policies can make life easier for your family when you’re gone. Many life insurance options are available, but not all are legit. The above picks are some of the best options on the market. Try them today if you’re not using life insurance already and experience professionalism and convenience on a new level.