When you are looking for life insurance coverage, there are dozens of different factors that you’ll need to consider to guarantee that you have the best plan for you and your family. Aside from having life insurance, it’s vital that you get the perfect plan for your loved ones. The two biggest decisions that you’ll face are, how much coverage that you should buy and the type of plan that you should buy.
There are several kinds of life insurance coverage that you can choose from, but they all fall into two separate categories: term or whole. As you can guess from the names, term insurance policies are only active for a “term, ” and whole life insurance plans are going to give you a permanent form of coverage. Deciding between the two are is an important decision and will have an enormous impact on your life insurance protection.
Term Vs. Whole: Head to Head
To ensure that you’re making the best choice for your life insurance coverage, you’ll need to look at the characteristics of each type of plan and decide which one is going to work best for you. Before we start looking at which one is best for you, let’s look at the basics of each type.
The obvious distinction between the type categories is the length of the coverage that you’ll get. With a term insurance plan, you only purchase one of these policies for a set amount of time. These plans come with an expiration date attached to them, and after that point, they will no longer be active, and you won’t have coverage.
With a whole life policy, these plans are never going to expire. As long as you continue to pay the monthly premiums, you’ll have life insurance coverage. Some insurance companies have age limits on their whole life plan. Some insurance companies have expiration dates, but most companies will allow you to have life insurance protection until your around 100-years-old.
Term VS. Whole: The Cost
One of the most important factors that applicants look at when they’re shopping for insurance coverage is the cost of the plan. One of the most common reasons that people don’t buy life insurance is because they assume that it’s going to be too expensive. In most cases, that couldn’t be further from the truth.
When you’re deciding which type of plan that you’re going to buy, one factor that you should consider is how much money you can spend on your life insurance premiums. There is going to be a significant gap between the two kinds of policies.
If you want to get the most affordable insurance coverage, then a term policy is the way to go. These plans are going to be much cheaper than all of the other options on the market, especially compared to a whole life policy. We can’t say exactly how much more expensive a whole life policy would be for you because there are so many determining factors, but in most cases, a term life insurance plan is going to be three times cheaper versus their permanent counterpart.
Term Vs. Whole: Which is Right for You?
When you’re choosing between the two options, there are several different questions that you can ask yourself to guide your decision making. There are some important categories that you should look at to ensure that your family has the protection that they need.
The first question that you should ask yourself is, “How long am I going to need life insurance?” this might seem like an obvious question, but it’s going to be one of the most impactful. For most applicants, they will only need life insurance until they reach retirement age (or around there). The main purpose of a life insurance plan is to pay off all of your debts and other final expenses, which means that if you reach of stage of life where you no longer hold a massive amount of debt, then you don’t need insurance coverage.
Additionally, your life insurance will give your family the money that they need to replace your paycheck if something tragic were to happen. If you’re one of the primary income earners in your home, and you were to pass away, your family would struggle to pay for any necessary expenses. Life insurance will ensure that they have the money to get through the difficult time, without having to sacrifice their standard of living. When you’re deciding between a term plan or a whole life policy, you’ll need to consider how long you will have dependents. If you have children that are getting close to going to college or earning their own paycheck, then you will only need life insurance for a short time, which means a term plan will be a better option.
These are only a few of the different expenses that you will need to add up before you purchase life insurance coverage and factors that you will need to determine. If you are confused by any of these categories, please give us a call. Not considering every factor could leave your family with inadequate coverage if something were to happen to you.
No Exam Term Life Insurance or Whole Life Insurance
Another option for life insurance is to purchase a no exam life insurance policy. As the name implies, these plans let you get life insurance without having to take the medical exam. For some people, these can be the perfect option, but for a lot of people, they aren’t the best choice. It’s important that you compare all of the possible plans before buying one of them.
Typically, no exam life insurance is term, but there are a few companies that sell no exam life insurance, but those plans are going to be more expensive than their counterparts that require a medical exam. You can get approved for life insurance in a matter of days, versus the month that it could take with a traditional insurance policy. The problem is that you’re going to pay at least twice as much for your coverage.
With a no exam plan, you can get life insurance coverage much quicker, but it’s going to come at a higher price. Without the medical exam, the insurance company is taking a greater risk to get you life insurance, and they are going to charge you higher premiums for that risk.
Unless you’re just looking to skip the medical exam because you don’t have the time, or you hate needles, then you should only use no exam plans as a last resort for life insurance coverage.
Term Vs. Whole Life Insurance: Independent Insurance Agents
Regardless of which type of policy that you decide to buy, the best way to ensure that you’re getting the best plan available at the lowest rates is to work with an independent insurance broker. Unlike a traditional insurance agent, independent brokers work with dozens and dozens of highly rated life insurance companies across the nation.
We can help you get the lowest insurance premiums available. It’s our mission to ensure that you’re getting the best rates available. Because every insurance company is different, all of them are going to give you drastically different rates depending on which company that you choose. Finding the perfect company is the difference in getting an affordable plan or getting one that fits in your budget.
This is especially true if you have any health problems. Because every insurance company has different medical underwriting, if you’re a high-risk applicant because of your health, then one company might decline your application, while other companies are going to give you cheap coverage.
Our experienced agents can walk you through the decision-making process to ensure that you’ve picked the best plan and they can also bring you personalized quotes. Don’t waste hours and hours on the phone calling different companies. We can bring all of the best plans directly to you in a matter of minutes. It’s our mission to ensure that your family has the insurance protection that they need while giving you the best price for that coverage.
If you have any questions about any of the policies in this post, or you need help deciding which one is best for you, please contact us today, we would be happy to answer any questions that you have and connect you with the best plan. You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the coverage that you and your family deserves.