- Why should I have life insurance?
- What types of life insurance are available?
- How much coverage should I have?
- How do I choose the right company?
- How do I know if I’m getting the best rates?
- What steps do I take to get a policy?
- Should I get insurance to pay off my mortgage if I die?
- What other type of insurance is important?
- If I smoke cigarettes or use tobacco, does that affect my life insurance rates?
- Does my weight affect my life insurance rate?
- Do you charge anything to get started?
- When would my life insurance start?
- Do insurance companies have a money-back guarantee if I change my mind?
- What do I pay for the insurance after the 10, 15, 20 or 30 year terms of the guaranteed insurance premiums?
Why should I have life insurance?
It’s unfortunate but people die – some sooner than later, and even though it’s unpleasant to think about, it’s important to do what’s right for those you love.
A person gets life insurance to make sure that there is money available to maintain the financial life for those who will still be living and have a future. In a way, it’s a selfless decision since you are looking out for your spouse and/or your children just as you would protect them from dangers and difficulties in life. At LifeInsure.com, our insurance advisors and support staff are here to help you gain more understanding of this subject and help you select the right life insurance policy. There are benefits for you from having enough insurance while you are living: You’ll feel better knowing the ones you love will be able to continue their lives without unnecessary financial disruption; if you have permanent life insurance (whole life or universal life) you can build cash value that can grow tax free. This can help give you the freedom to do other things with your money and investments because you know you have an asset your family can count on – life insurance.
What types of life insurance are available?
There are two main types: Term vs. Permanent Life Insurance:
1. Permanent life insurance is designed to last for your whole life. There are two main categories: Whole life and Universal life .
2. Another type of life insurance is Term Life which varies in length of time from one year to thirty years. There is also a new type of term life policy that refunds all premiums you paid if you keep the policy for the term period. Learn more about return of premium term life insurance for your own term life insurance comparison.
How much coverage should I have?
The easy answer is you should have enough coverage to replace the income that you would have earned had you been alive to earn it. How do you calculate that amount? There’s a section on this site that shows you how to calculate the right amount. Find out how much life insurance you should have. There is also a very simple method of calculating the right amount of life insurance for you – take a multiple of your income that is 10 times to 15 times your annual gross income.
How do I choose the right company?
Buying life insurance is a little more complex than purchasing a car or a television.
When you purchase a policy you are buying a promise, a contract to pay something in the future vs. buying a commodity or something tangible. It’s very important for you to examine the company that’s backing your policy as well as considering the cost of the policy. One of the important items to consider when looking at a life insurance company is the financial strength rating of the company. Insurance company financial ratings are described further on this site.
How do I know if I’m getting the best rates?
You can find out if you’re getting the best life insurance rates here online at LifeInsure.com. Our quote engine searches quickly to find you a customized rate and policy. Search for instant term life insurance quotes and instant quotes on return of premium term life policies and universal life insurance policies. For whole life policies, we’ll need to gather some basic information from you to deliver an accurate quote. It’s to your advantage to have LifeInsure.com working for you because, as independent broker, we work with the major life insurance companies in the market today. As we are not beholden to any one company, we always look after your best interests first and foremost.
What steps do I take to get a policy?
First, choose the coverage amount you desire and then get quotes right here on the site. If it’s term, return of premium term or universal life coverage you’ll get a comparison of current market quotes right here on the LifeInsure.com site. Then choose the policy that suits your needs and move to the next step.
The next steps are application to the insurance company which we’ll help you with, a short medical exam provided by the life insurance company you choose at no cost, a review of your information by the life insurance company, then approval and premium paid and you’re on your way.
Should I get insurance to pay off my mortgage if I die?
Getting life insurance to pay off major obligations in case of death is one of the most responsible and generous acts of love you can provide. Feel free to quote inexpensive term life or return of premium life insurance for the amount of your mortgage but also strongly consider getting coverage for the entire amount that is appropriate for you and your loved ones–not just enough to pay off your mortgage.
What other type of insurance is important?
Of course, one should have the appropriate amount of car insurance and homeowners insurance but there’s a type of insurance that’s often forgotten –
disability insurance to protect your income. It’s a statistical fact that it’s more likely that one has a long term disability before age 65 than dying. You can learn about disability insurance, the best types of disability insurance and get quotes at www.protectyourincome.com
If I smoke cigarettes or use tobacco, does that affect my insurance rates?
The answer is yes it will but you still can get competitive rates. Some companies charge less for tobacco use than others. If you smoke cigars occasionally or chew tobacco occasionally, a few companies will still offer preferred non-smoker rates. Contact us at 866-691-0100 so we can get the lowest possible rates that match your situation or email us.
Also, if you get a life insurance policy that includes a rate for tobacco use, it’s possible to lower it in future years if you quit tobacco for a number of years and remain healthy. We just go back and work with the insurance company to try to lower your rate and in most cases we can do that for you.
Does my weight affect my life insurance rate?
There are different rate classes for life insurance. When calculating the exact rate for you, the company does take your weight into consideration. There is a height/weight chart on this site that can give you an idea how weight affects the way insurance companies might judge your rating class. Our quoting engine takes your height and weight into consideration when calculating your rate class and premium.
Do you charge anything to get started?
Most insurance companies have monthly,quarterly, semi-annual or annual premium programs. You have the choice of making an initial premium payment with your application. If you so, temporary insurance begins on the date of signature on your application, assuming all questions are answered completely. Additionally, it is subject to what the insurance company has stated on the conditional receipt you receive in return for your deposit. If for some reason you don’t qualify for the insurance or decide not to take it your deposit will be refunded..
When would my life insurance start?
Most insurance companies have monthly, quarterly, semi-annual or annual premium programs. You have the choice of making an initial premium payment with your application. If you do so, insurance begins on the date of signature on your application, assuming all questions are answered completely. However, it is subject to the terms and conditions on the conditional receipt you receive in return for your deposit. If, for some reason, you don’t qualify for the insurance or decide not to accept the policy, your deposit will be refunded.
Do insurance companies have a money-back guarantee if I change my mind?
Yes, insurance companies will refund any deposit if you change your mind while your application for insurance is pending. Also, after your get your policy you can have a full refund under a 10 day free look period (longer in some states). If, for any reason, you decide to cancel your policy after you paid for the policy, you can do that without any questions asked within 10 days after you have receive your insurance policy. (Length of time differs based on the regulations of the state in which you applied for insurance – but 10 days is most common.)..
What do I pay for the insurance after the 10, 15, 20 or 30 year terms of the guaranteed insurance premiums?
Some term life insurance policies are renewable. If so, you will pay up to the guaranteed maximum renewal premium, as shown in the policy. Non-guaranteed renewal rates, as shown in the policy, give you a projection of what the renewal rates will be. The actual renewal rates my be higher or lower, but they will never be more than the guaranteed maximum. The insurance policy is your contract with the insurance company, so please review it carefully.
At the end of the term period, if you can qualify for new insurance, you can re-apply for lower rates than the renewal premium with a new insurance company or possibly with the same insurance company your expiring policy is with.
For more information and to learn more about life insurance visit our Education Center.
Questions? Contact us.