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How to Protect Your Family by Choosing the Right Life Insurance

You are the breadwinner for your family. Your loved ones depend on you for their material needs as you keep a roof over their heads and provide for all their other necessities.

Losing you would be catastrophic because they would also lose their home along with all the other financial support you provide.

To protect your family from catastrophe and ensure their needs continue to be met in the event that you are gone, you need to procure a decent life Insurance policy to pay off your home mortgage, cover your funeral expenses and provide enough money for them to survive.

Choosing the right life insurance can seem daunting, but following the steps outlined below can ensure you make a choice that will benefit your loved ones for years to come.

Determine How Much Life Insurance You Need

Before you purchase a life Insurance Policy, you need to determine how much life insurance you need.

You can determine how much life insurance you need to purchase by adding up your family’s expenses for one year and multiplying that number by the total of years you have until you retire.

Check Out the Various Types of Life insurance

There are many types of life insurance policies on the market, and all of them function differently.

It is advantageous to learn how each of these policy types works so you can choose the one that will best meet the needs of your loved ones.

Whole Life Insurance

A whole life insurance policy will cover you for the duration of your life so long as you do not allow the premiums to lapse.

Premiums for a whole life insurance policy will be higher when you first obtain the policy; however, the cost will remain the same your whole life. You will never have to worry about premium increases, and you do not have to worry about renewing the policy.

Term Life Insurance

Term life insurance is what the name implies. Term life insurance policies only last for a specific duration. Some term life insurance policies last for as little as five years or as long as 40 years.

Some term insurance policies will allow you to renew them; however, the premiums will increase.

Additionally, some term life insurance policies cannot be renewed without a medical exam, and you may lose the right to renew these policies upon reaching a certain age.

If you decide to purchase a term life insurance policy, you need to ask some vital questions. These questions could be:

  • Can I convert the policy into a cash-value policy during the conversion period even if I am not in good health?
  • Will I lose the right to renew my term policy once I reach a certain age?
  • What will my premiums be when I choose to renew the policy at the end of my term?
  • What are the annual and monthly premium amounts? Asking about these is important because it is sometimes cheaper to pay your insurance premiums annually.
  • Can I change my coverage from temporary to permanent?

Universal Life Insurance

Universal life insurance is a type of policy that allows for flexibility, making it an attractive option for many. Once there is money in the account, you can pay your premiums at any time and in any amount you choose provided it falls within specific limits outlined by your policy.

You can increase or lower your death benefit at any time, and you can take out cash if you have encountered serious circumstances.

The downside to universal life insurance is that how the policy performs will depend on conditions in the market at any given time.

Also, depending on how you use the policy during life, there may not be as much left for your loved ones once you are gone.

Group Life insurance

Group life insurance is offered by employers. When you begin working with a company, you have a certain amount of time to sign up for any life insurance policy the company offers.

This option is beneficial for those who are not healthy because you do not need to provide any information about your health history or have a medical exam.

You can also obtain a policy for as much as $500,000 even if your health is poor. Many group life insurance policies will also have conversion privileges which will enable you to take your life insurance policy with you if you leave the company.

With group insurance, you can also obtain long-term disability benefits without needing to reveal your health history which is beneficial if you suffer from a chronic health condition that will otherwise disqualify you.

Work With a Life Insurance Agent

Trying to purchase life insurance on your own can be overwhelming. You will come across a significant amount of confusing language, and you may not always know where to look to get the best deals.

Life insurance agents can help you get the best bang for your buck, and they will also know what is available in your locale.

For instance, if you need to purchase life insurance in Arizona, a life insurance agent will let you know specific requirements and unique policies that pertain specifically to that state.

Add Living Benefits and Other Riders to Your policy

Many insurance companies will allow you to customize life insurance policies to meet your specific needs by adding riders to your policy. Some of the most common riders to add are:

  • Guaranteed insurability rider: This enables you to obtain more insurance in the future without a medical exam or revealing your health history.
  • Accidental death benefit: This pays your loved ones if you die in an accident.
  • Waiver of premium—this allows premiums to be waived if you become too disabled to work.
  • Disability income: This pays you if you lose your ability to work due to becoming disabled.
  • Accelerated death benefit: This allows you to collect some or all of your death benefits if you are classified as terminally ill.
  • Long-term care: This rider pays for any long-term care you may need whether it is in your home or in a nursing home.

Avoid the Medical Exam

If you are older or have a bad health history, you want to focus on purchasing policies that will allow you to avoid the medical exam.

Most policies will only insure you up to $50,000; however, there are ways for you to get insurance for more if you look in the right places.

Once you have a life insurance policy that is guaranteed to meet your needs and protect your loved ones when you are gone, you will be able to rest easy.

You will not have the worry about your loved ones facing a serious catastrophe that will leave them destitute.



This post first appeared on Momooze, please read the originial post: here

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How to Protect Your Family by Choosing the Right Life Insurance

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