Life Insurance

The best type of life insurance depends on what kind of coverage term, the extent of coverage you want to pass on to your beneficiaries, and the premiums. Term life insurance is best for affordability, covering the policyholder for a specified number of years. Premiums don't increase during the policy period, which is a benefit. However, the policy pays out if the insured dies during the covered term. Permanent life insurance carries cash value, so you can borrow against it to cover necessary expenses throughout your life. Universal coverage options are some of the most flexible policies, allowing you to set the frequency of payments and decide how much the payments will be as the rates change. Whole coverage options do not have fluctuating rates, but you will be paying premiums throughout your policy.

Most insurance policies require a medical exam before being issued. The medical exam is essential for assessing your overall health and what you may be at risk for, short-term and long-term. The information from the medical exam is what insurers use to set the premium for your policy, meaning it is in your best interest to get a medical exam to ensure you get the best applicable rate. If you have a serious pre-existing medical condition, you may fear you will be unable to get a policy or that your premium will be higher than most. Rest assured that this is not the case, and options are available for these specific scenarios.

Yes, you can still get coverage if you are diagnosed with a critical/terminal illness. However, the policy will be different. A policy, under those circumstances, is usually granted accelerated benefits, also referred to as living benefits, which allow the funds to pay out before the insured dies. Depending on the policy, a person can claim anywhere between 25 to 100 percent of the policy as early payment. However, you should note that receiving accelerated death benefits may affect your Medicaid eligibility.

You do not need a mortgage to qualify for a life insurance policy. Instead, you can use your policy to help pay your mortgage in the event of your untimely death, either by borrowing against it or having it paid out. Using your funds in this way ensures your loved ones will have the necessary provisions. Your policy can cover the mortgage cost or help make payments more manageable in your absence.

There is no minimum age for a life insurance policy, so a better question is when should you get one? If you are an adult with responsibilities and dependents, you should consider taking out a life insurance policy to ensure your loved ones are provided in the event of an untimely death. Plans vary in affordability, so do not stress taking out a particular policy and instead focus on getting coverage to protect your loved ones.

The difference is that health insurance helps pay for medical expenses such as doctor visits and necessary procedures. Unlike health insurance, life insurance covers the expense of premature death. These expenses include funeral costs and debts for the insured, college funds, and retirement years for loved ones. Life insurance will help ease the financial burden on loved ones after your death, especially if you have a significant other, children, or grandchildren who depend on you.