Purchasing life insurance is one of the most proactive steps you can take to ensure the security of your family.
"What is life insurance?"
Life insurance policies help meet your loved ones' financial needs in the event of your death. Think of it as basic protection they need to live a full and happy life without you.
"Why do I need it?"
Many experts consider life insurance the foundation of sound financial planning. These are some of the reasons to get a policy:
"What are the different types?"
There are two primary life insurance types: term and whole. To help you understand each one, we've outlined the two main types below.
1. Term Life
Term life insurance is the most common type, and is generally cheaper (and less complicated) than whole life. Term life usually offers you the best value for your dollar by giving the biggest death benefit for your premium dollar, payable to your beneficiary after your death.
This type of life insurance pays a death benefit only if you die during that term, which can be as short as one year and as long as .
Each time you renew your term life policy, your premiums may increase along with your age. To avoid surprises, you may want to ask your insurance company to show you the projected premiums for the next 10 or 20 years. That way, you and your family can budget for the future without straining your finances.
2. Whole Life
Whole life insurance is also known as permanent insurance. A whole life policy covers you as long as you live – as long as you pay the premiums.
In order to buy this kind of life insurance, you will need to complete a health questionnaire and possibly undergo a medical examination.
Unlike a term life policy, whole life insurance may also earn dividends on a yearly basis. If you do not take out the dividends when they accrue, they too will earn interest.
"How can I save?"
Stay (or get) healthy! There has never been a better time to quit smoking and start exercising.
You can also save money if you take out a life insurance policy now, rather than later. Why? The younger you are when you purchase your policy, the lower your premiums will be.
But the number one way to save is to shop around! The more quotes you get, the more leverage you have in price and options.
Start planning for the future today with life insurance quotes from InsureMe.