Shopping for life insurance is something many people put off because either it seems too complicated or unnecessary. Getting a quote is not difficult, and it can be an easy way to start assessing if you need life insurance and what policies would be most beneficial to your particular situation. It is important to have a plan in case something happens to you, especially if you have others relying on you.
Here are a few pointers on life insurance quotes to help you through this decision-making process.
- Types of Life Insurance
There are only a few main types of life insurance to decide between. Term Life is usually just for a certain term (though it can be transferred or extended sometimes) and is used to provide a death benefit for a certain period that is predefined. It tends to be a lower cost than other plans, but it is because of the limited nature and because it does not have any cash value.
Whole Life is meant to cover for an entire life and not just a specific period, and it also guarantees that you will get the cash value in return for fixed premiums. Death benefits are guaranteed for a lifetime as well. Guarantee Universal Life is a plan that will give you a lot more options and flexibility. You can get a lifetime policy, or you can fix it to a certain term. You can also increase or decrease the death benefit according to the policy holder’s insurability. Because of the flexibility received with this plan, there are also fewer guarantees that come with it. Index Universal Life is also very flexible like the Guarantee Universal Life plan, but it is different because it bases your policy value on the index. You can choose a fixed rate plan, but most people who choose this plan want the opportunity for growth of the cash value of the death benefit. Another reason is that it can be used for added benefits like withdrawal or loan permissions or an income tax-free basis.
- Where to Get Life Insurance Quotes
There are quite a few good options out there for life insurance, but we found a few of the top providers who will have the kinds of plans and rates you are looking for. Murphy Insurance Agency is a solid option for life insurance quotes because they look at all the options for you and find the best deals and policy options. This option is a huge time saver since they have access to at least 45 different companies who they can evaluate based on what your needs. State Farm is well known and one of the favorites when it comes to insurance. They are popular not because their products are the cheapest around but because of the value of their plans along with a great deal of flexibility built into those plans. Their online support and information are spectacular and very helpful to those trying to figure out what they need. Transamerica is another forerunner in the insurance market because of the incredible resources provided to customers and shoppers alike. The information they provide is clear and helpful while their customer support is very highly rated as well. Their range of plans is huge, and they offer a lot of flexibility also. MassMutual is a high-ranking provider due to the flexible coverage available and the large number of options for policy riders. MassMutual has earned the highest financial rankings in the life insurance industry because of their stability and solid credit ratings. Many people chose this firm because of the reliability displayed and the financial soundness that they can trust.
- When to Get Life Insurance
The majority of people tend to put off buying life insurance until they are older because they believe they have less of a chance of dying and because they do not believe anyone relies on them enough. Sometimes they do not think they are successful enough to need that kind of insurance. Another reason it is bypassed until an older age is because people think it will be expensive. However, this is not true when you are young. It is actually extremely cheap to get life insurance when you are young, usually only a few hundred per year for a coverage plan of around $200,000- $300,000. Not a bad deal. Ultimately though, there is no magical age when you should be buying life insurance. Most people should get life insurance when they are relatively young in order to lock in a lower premium. Buying when you are healthy is a plus because when you buy as an older person or sick person, rates will be much steeper. However, if you do not have dependents or anyone relying on you currently, it may be better financially to hold o
ff until you do. You should also be honest about your physical state when getting quotes. Even though you may get a cheaper plan, if something happens then the insurance company will investigate before it pays you.
- Personal and Business Related Needs
Life insurance quotes can be focused on two main things: your personal needs and your business and professional needs. The personal end is more focused on covering family members and ensuring that they can live well even after you die. The business side is what covers the business you have started and those who work for you in case you die. This will ensure a smooth transfer to another owner and that your family and employees are taken care of. Whole life policies offer investment options for you to make money on what you are investing in your life insurance policy. Some people prefer to keep their insurance and investing separate due to high commissions taken for the investing that is done. Others find it rewarding and helpful to have their insurance policy making money for them and providing them with more financial security.