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Buying Life Insurance

Buying life insurance is easier than you think.  If you’ve ever thought about buying a cheap life insurance policy, we can help.  More and more people are turning to cheap life insurance policy as a way of caring for their families after they are gone.  As you begin the process of trying to decide what kind of life insurance you’ll need to cover future financial needs, ask yourself some simple life insurance questions.

Why do I want to buy life insurance?

If you have people depending on you financially, then you may want to consider an cheap life insurance policy. Life insurance ensures that your family will be cared for if you die. The money your beneficiary receives (the death benefit) can be a crucial financial resource. It will potentially help cover daily expenses, pay your mortgage and cover any outstanding loans, fund tuition, and ensure that your family is cared for after you’re gone. Having a cheap life insurance policy can help make sure that your spouse or children won’t  have to sell and of your assets to cover bills or taxes. Another great reason to invest in life insurance that your beneficiaries won’t have to pay federal income taxes on the settlement they receive.

How much life insurance do I need?

Every family’s needs are a little different.  One of our life insurance agents would be happy to help you figure out what level of coverage is the right fit for you and your family based on your financial needs and revenues of income. There are lot’s of online calculators that can also help you; however, comparing life insurance quotes online is easier than ever and many times you can qualify for no exam life insurance.

For most people, deciding how much life insurance you need is as simple as deducting your total income that would be lost if you died from the total sum of your dependent’s ongoing financial needs. Be sure and consider any ongoing expenses (groceries, rent, tuition or car payments) as well as any immediate expenses (unpaid medical expenses, funeral costs or even estate taxes).  You may want to provide enough funds so that your family can move.  Be sure and consider the expenses that will need to be covered while looking for a job.  It’s true that when buying a cheap life insurance policy it’s good to evaluate current needs, there are some life insurance agents that will recommend any life insurance coverage you get should cover up to 10 times your annual income.

What are the different types of insurance?

There are basically two types of cheap life insurance: term and permanent. Term life insurance policies pay your beneficiary if you should die during a certain period of time whereas permanent insurance pays your beneficiary whenever you may die. Many people today are looking for life insurance without a medical exam or questions.

What is term life insurance?

A term life insurance policy will provide protection over a specific period of time.  The average term life insurance policy usually ranges from 10-30 years and pays out only if you die during that time period.  A term life insurance policy is usually used in order to cover any financial obligations that will eventually be paid like a mortgage or tuition.  Some premium term life insurance policies are fixed for a certain period of time and can increase after a certain point within the life insurance policy.  Many times these are more affordable than buying a cash life insurance policy.  The great thing about term life insurance is they can include a return of premium benefit that can refund all or most of the premiums paid in no benefit was paid out.

What is permanent life insurance?

A permanent life insurance policy (cash value) can provide coverage for a lifetime as long as the payments are being made.  It can be built up as a cash value policy of the life of the policy and the good news is the tax is deferred.  As with most permanent life insurance policies, your cash value will be a little different than the face value.  The cash value becomes the amount available to you if you cancel the policy before you die.

These are just a few things to consider when purchasing a cheap life insurance policy.  If you have any other questions please feel free to contact one of our agents.  They’d be happy to answer any questions that you may have.