5 Great Answers to 5 Life Insurance Questions

compare life insurance If you love your family members and you want to secure their future, you should consider investing in life insurance. This type of coverage allows you to take care of your family members, protect their welfare and help them cope with financial burdens caused by your premature, unexpected death. Life is unpredictable. Even if you are young and perfectly healthy, you can still pass away before your time. According to the numbers provided by the National Highway Traffic Safety Administration listed by Statistic Brain, 25,580 fatal car crashes were recorded all across the U.S. in 2012. As pessimistic as it may sound, you are not immortal, and tragedies happen every single day.

Traffic accidents and chronic illnesses with a rapid evolution could cause your death and let your relatives drown in an ocean of unpredicted expenses and massive debts. Fortunately, you can avoid all this drama and create a better future for your loved ones by investing in life insurance.

You’ve probably heard or seen so many commercials that present ridiculously cheap policies for which you would have to pay only a few dollars on a monthly basis, while benefitting from 1 million dollars in coverage. These commercials are obviously promoting term insurance, which protects your surviving relatives for a limited period of time (10, 20 or 30 years). So which type of life insurance could be considered a smart investment and which kind of coverage is less recommended? It all depends on your specific needs, financial possibilities and expectations. Buying life insurance is not always a very straightforward process. To give you the chance to make an informed purchase, we have decided to come up with a list of 5 answers to life insurance-related questions that may still be on your mind at this time.

Do I Really Need Life Insurance?

Life insurance is not a legal requirement, so you don’t have to buy it unless you really need it. So how could you possibly assess its utility? As a rule of thumb, if one or more people in your family depend on your income to survive, you should invest in a life insurance policy. There are various options at hand: some policies cover your funeral expenses and allow relatives to cope with monthly expenses for a short period of time, while first-class, pricier alternatives give you the certainty that your beloved ones will live a comfortable, stress-free even in your absence. You just have to determine how much money you want and can afford to spend on your life policy and choose the best one in your price range.

What Are the Best Options at Hand?

When it comes to selecting the best type of coverage, you have different options that may meet your needs. There are 2 types of policies that you should consider:

Group policies: Some companies offer their employers the opportunity to profit from term life insurance. The main advantage of group policies is that they are easy to obtain. Staff members just have to complete a very short questionnaire related to their medical history. The fact that you can pay for insurance via payroll deductions is also a notable benefit. Moreover, you should also know that most group plans do not demand a medical exam.

Individual policies: These policies are much appreciated for their superior level of flexibility. An individual policy is portable, meaning that you wouldn’t lose your coverage if you were to accept a new job offer. They can have level premiums for the entire duration of your life insurance policy, which is typically a ten, twenty or thirty-year period. Most importantly, you can always upgrade your current policy, by turning your term life insurance policy into a permanent one.

Can I Spot the Best Deals without Contacting an Insurance Agent?

Of course you can! To get accurate quotes in a timely fashion, all you have to do is to go online. With a bit of help from Insurance Quote Depot, you can compare life insurance rates by zip code. This is the quickest, most effective way to start your quest for exceptional deals in terms of life insurance. So before deciding to schedule a meeting with an insurer, go online, compare quotes and spot the most attractive offers launched by different carriers.

Can I Upgrade My Coverage?

If you have an individual life insurance policy, you can upgrade it at any point in time. You can trade your term policy for a permanent one. But before you decide to make this important step, make sure you are fully aware of all its implications. For instance, different carriers may have different conversion rules and various limitations for certain policies. For example, people over 70 may not be able to profit from the conversion privilege granted to younger beneficiaries.

What Happens If I Actually Stay Alive?

Believe it or not, some people who chose to invest in term insurance a while ago get really angry when they finally realize that they don’t receive anything from the insurance company if they do not pass away. If you are one of those individuals who hate the idea of throwing money out the window, you should know exactly what happens towards the end of the contract.

  • Premiums reach higher values
  • You may need to apply for a new policy if you are perfectly healthy and want to preserve your coverage
  • You can upgrade your policy while making the most of your conversion privilege, or you could let your life coverage expire, especially if you no longer feel the need to spend any money on it. Some people just want to pay for this type of policy while their families are coping with massive expenses (college tuition or a big mortgage, for instance).

Finding the best life insurance policy doesn’t have to be a challenge. If you don’t want to waste any time talking to different insurers who may trick you into signing on the dotted line, simplify your mission by getting and analyzing free quotes online. Compare life insurance rates by zip code and do your homework properly before meeting your insurer.

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