Life insurance is usually not thought of as a necessity by a great majority of people, but its impact can not be overestimated. If you were to talk to two women with children who lost their husbands, you’d quickly find out how much easier life was, financially speaking, for the family who had life insurance compared to the other one who did not. No one knows what life has in store for them, and as a way to protect yourself and your loved ones, taking out a cost term life insurance policy is a great way to help them if you unexpectedly pass. One reason many people shy away from buying insurance is that it can be difficult to understand. However this shouldn’t be your excuse after reading through this information. You’ll know the benefits of cost term life insurance. Then all you need to do is find and get approved for a policy. Here are three facts you may not have known about life insurance.
1. Not All Insurance Companies Use the Same Criteria: Insurance agencies use different underwriting criteria to categorize their clients and the criteria can vary drastically from one company to the next. Always compare quotes on cost term life insurance from different companies, and make sure that the quote is based on specific data about your health and medical history so that you aren’t quoted one price and then asked to pay another price upon signing the contract. Active, healthy, non-smokers who are at a normal weight are among those who get the cheapest life insurance because there’s less chance of the company having to pay out on a claim. Age, gender and medical past are also taken into consideration, but there’s nothing you can do to change those facts. If you are a smoker or overweight you can get a policy now and once you have stopped smoking or lost weight, ask to have your policy reviewed so that you get better rates. Don’t think that you should put off getting a policy until you lose those last 20 pounds. That’s too risky–it might take you a long time, you may forget about it later on or you might pass on due to an unrelated cause.
2. Insurance Was Used Thousands of Years Ago: The idea of insurance was around in ancient civilizations as early as 5000 BC. People in China and Babylon used it as a way to take care of burial costs for their loved ones. While they might not have been able to get cost term life insurance quotes online, as you can easily do, they knew the importance of being part of a group of people who share in the costs of unexpected events. Although death is certain in everyone’s life, if often comes far too early and not due to old age. Many adults are left without partners, children are left with a single parent or even as orphans, and too often extended family has to pitch in to cover basic funeral expenses. Term life insurance is most beneficial to people who are not yet financially stable and depend on nearly every cent of their income. Young families are among those who need coverage the most. If you are single with no dependents and enough savings to provide for your funeral, you may not want insurance. As the name suggest, term insurance is only for a specific amount of time, usually ten to twenty years. Once the term is up, you are no longer covered. However, by that time your children should be mostly grown and you’ll have a nice amount of savings for the future.
3. Term Life Insurance Offers More Savings Than Whole Life Insurance: Even though many people never receive the benefits of cost term life insurance, it ends up being cheaper in the long run. On average, policies cost 25% to 50% less than whole life policies because you aren’t building up any cash value inside of the policy. You just pay in your premiums until you need to make a claim or until the term is over. With whole life, you have the insurance, and must pay the expensive premiums, for the remainder of your life. Then the cash value is lost when your collect on the insurance.
One final thing to remember is to get enough level term life insurance. Since it’s inexpensive, try to get 10-20 times the amount of your annual income. If you make $50,000 a year, buy at least a $500,000 policy. Then you’ll be sure that your loved ones have plenty of money to live on while adjusting to their loss and won’t suffer due to the loss of your income.