When to Buy Life Insurance
EMPLOYEE LIFE INSURANCE
financialIf your only life insurance coverage is through your employer, you simply may not have enough to cover all of your family’s bills and expenses if you were to pass away. In most cases, especially if you have dependents like children, a spouse or elderly parents, employee life insurance is not enough.
Employee coverage may be enough if you only want life insurance to cover minimal expenses like funeral arrangements or a few bills. But if you are looking to life insurance to act as income replacement, pay off large debts like a mortgage payment or be used for future expenses like college education, you should have purchase another policy.
First, decide how much life insurance coverage you need. Factor in your income, large debts, future expenses and everyday expenses like utilities and bills to give you a general idea of how much of a death benefit your loved ones would need to maintain their standard of living. If you’re struggling to figure out an appropriate amount of coverage, try a life insurance calculator.
Does the amount of coverage you have come up with exceed what your employee life insurance will pay? In most cases it will, and so you should supplement your employee policy with a second life insurance policy to fill the financial gaps.
Another good reason not to rely solely on your employee life insurance policy is in case you lose your job or leave the company for a new position. The life insurance policy is not always transferable, so you may be vulnerable to not having life insurance once you leave the company.
SOURCE: Efinancial
Employee coverage may be enough if you only want life insurance to cover minimal expenses like funeral arrangements or a few bills. But if you are looking to life insurance to act as income replacement, pay off large debts like a mortgage payment or be used for future expenses like college education, you should have purchase another policy.
First, decide how much life insurance coverage you need. Factor in your income, large debts, future expenses and everyday expenses like utilities and bills to give you a general idea of how much of a death benefit your loved ones would need to maintain their standard of living. If you’re struggling to figure out an appropriate amount of coverage, try a life insurance calculator.
Does the amount of coverage you have come up with exceed what your employee life insurance will pay? In most cases it will, and so you should supplement your employee policy with a second life insurance policy to fill the financial gaps.
Another good reason not to rely solely on your employee life insurance policy is in case you lose your job or leave the company for a new position. The life insurance policy is not always transferable, so you may be vulnerable to not having life insurance once you leave the company.
SOURCE: Efinancial
LIFE INSURANCE FOR THE SELF-EMPLOYED
Most employers offer some sort of life insurance policy through work that you can enroll in. But for the average consumer, a life insurance policy through work is typically not enough coverage.
Ideally, a life insurance policy should cover:
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A life insurance calculator can help you to determine an accurate amount of life insurance coverage. If your only life insurance policy is through your employer, take the time to determine if the death benefit is enough to cover all your expenses. Chances are it won’t cover everything you need which is why purchasing a second life insurance policy is essential, especially if you have a family.
If you’re self-employed, it’s essential to have a life insurance policy. Life insurance for self-employed individuals can not only protect their dependents, but their business too. A life insurance death benefit for the self-employed should cover any sort of business expenses.
SOURCE: Efinancial
If you’re self-employed, it’s essential to have a life insurance policy. Life insurance for self-employed individuals can not only protect their dependents, but their business too. A life insurance death benefit for the self-employed should cover any sort of business expenses.
SOURCE: Efinancial
LIFE INSURANCE FOR THE DIVORCED
Sadly, not all marriages last until death. Learn more tips about life insurance if you're reassessing a policy because of divorce.
Life insurance is an important financial tool that everyone should have. If you’re getting divorced, it’s even more important. Each ex-spouse should have their own policy, especially if you have children together.
If you don’t have a life insurance policy, a divorce is a good time to invest in your own. If you already have a life insurance policy and are going through a divorce, it’s wise to review the policy to ensure it still has a large enough death benefit to cover all your expenses. Be sure to also take a look at the beneficiary. If it is your ex-spouse, you may want to change the beneficiary of the policy.
Once you get divorced, your finances will likely change. As part of a divorce settlement, you may be paying child support or alimony to your ex-spouse. Any life insurance death benefit you have should include be able to cover this monthly support payment.
When reviewing your life insurance policy, take the time to use a life insurance calculator to determine the correct amount of life insurance coverage to purchase.
SOURCE: Efinancial
Life insurance is an important financial tool that everyone should have. If you’re getting divorced, it’s even more important. Each ex-spouse should have their own policy, especially if you have children together.
If you don’t have a life insurance policy, a divorce is a good time to invest in your own. If you already have a life insurance policy and are going through a divorce, it’s wise to review the policy to ensure it still has a large enough death benefit to cover all your expenses. Be sure to also take a look at the beneficiary. If it is your ex-spouse, you may want to change the beneficiary of the policy.
Once you get divorced, your finances will likely change. As part of a divorce settlement, you may be paying child support or alimony to your ex-spouse. Any life insurance death benefit you have should include be able to cover this monthly support payment.
When reviewing your life insurance policy, take the time to use a life insurance calculator to determine the correct amount of life insurance coverage to purchase.
SOURCE: Efinancial
LIFE INSURANCE FOR NEW PARENTS
A new child is the true definition of a dependent, someone who truly depends on you financially and otherwise
Life changes quickly when you become a new parent. The focus is no longer on yourself and your spouse. A new child is the true definition of a dependent, someone who truly depends on you financially and otherwise. That’s why life insurance for parents is an extremely important financial tool. |
Life insurance can provide your family with a safety net if you were to pass away unexpectedly. The death benefit can provide income replacement, cover any major debts like a mortgage payment so your family can have a roof over their head and pay for funeral expenses. It can also provide available funds for college education and other expenses your children may have.
If you already have life insurance, becoming a parent is a good time to review your policy. Use a life insurance calculator to ensure your policy is still adequate for your growing family. Don’t limit life insurance coverage to just the income-earning parent either. If your spouse stays home to take care of your family, they should also have a life insurance policy. Consider the cost of child care and what it would mean financially if the primary caregiver were to pass away.
SOURCE: Efinancial
If you already have life insurance, becoming a parent is a good time to review your policy. Use a life insurance calculator to ensure your policy is still adequate for your growing family. Don’t limit life insurance coverage to just the income-earning parent either. If your spouse stays home to take care of your family, they should also have a life insurance policy. Consider the cost of child care and what it would mean financially if the primary caregiver were to pass away.
SOURCE: Efinancial
Types of Life Insurance Products
TERM LIFE INSURANCE
Learn the benefits of term life insurance and how it compares to whole and variable life insurance. As it is typically the most affordable kind of life insurance, you may be interested in learning more
Typically the most affordable type and the simplest form of life insurance, term life insurance is a policy that is only good for a specific amount of time. You pay life insurance premiums for the length of the term, usually 5, 10, 20 or 30 years, and if you pass away during the term, your beneficiaries receive the death benefits. Once the term is over, the term life insurance policy is no longer in effect.
There are many options for term life insurance, and it is a common product most life insurance companies offer, so it can be very affordable. Term life insurance is a good option if you want to cover specific financial responsibilities like a mortgage payment or college education. It also works well as a supplement to whole life insurance policies during times in your life when expenses are higher, like when you have dependents living at home.
Term life insurance premiums are locked in and do not increase during the term policy, but once the term expires, the premium rate could increase if you decide to continue with another term.
You should consider purchasing term life insurance if:
SOURCE: Efinancial
Typically the most affordable type and the simplest form of life insurance, term life insurance is a policy that is only good for a specific amount of time. You pay life insurance premiums for the length of the term, usually 5, 10, 20 or 30 years, and if you pass away during the term, your beneficiaries receive the death benefits. Once the term is over, the term life insurance policy is no longer in effect.
There are many options for term life insurance, and it is a common product most life insurance companies offer, so it can be very affordable. Term life insurance is a good option if you want to cover specific financial responsibilities like a mortgage payment or college education. It also works well as a supplement to whole life insurance policies during times in your life when expenses are higher, like when you have dependents living at home.
Term life insurance premiums are locked in and do not increase during the term policy, but once the term expires, the premium rate could increase if you decide to continue with another term.
You should consider purchasing term life insurance if:
- You need life insurance for a specific amount of time.
- You need a large life insurance policy but have a limited budget
SOURCE: Efinancial
Whole Life Insurance
When people begin their search for online life insurance quotes, they are bewildered at all the different types of policies that are available to them. Learn about whole life insurance and whether it is for you.
Whole life insurance, also commonly referred to as permanent life insurance, is a life insurance policy that is good for the entire life of the policyholder, even if they live past 100. There are three major types of whole life insurance, and each has their own unique variations:
Whole life insurance policies typically have higher premium rates, but they also come with a cash value component. The cash value of a whole life insurance policy functions as a savings account, and a portion of premium payments grow tax-deferred over time.
After a certain amount of time, stipulated in the policy, the accumulated cash can be used for loans or other purposes while you are living, or can be an increased death benefit to your beneficiaries. It can also be used to pay premiums to keep the policy in place if you can’t afford them any longer.
The life insurance premiums of a whole life policy will remain the same each year, and as long as you keep up with payments, the policy provides protection for life. While premium payments can be more expensive than term life insurance rates, the premiums remain the same no matter how old you are.
A whole life insurance policy is a good option if:
SOURCE: Efinancial
Whole life insurance, also commonly referred to as permanent life insurance, is a life insurance policy that is good for the entire life of the policyholder, even if they live past 100. There are three major types of whole life insurance, and each has their own unique variations:
- Traditional Whole Life offers permanent coverage with guaranteed level premiums, death benefits and cash value.
- Universal Whole Life a flexible type of permanent life insurance that can be customized based on your needs.
- Variable Universal Life combines a life insurance policy with an investment opportunity.
Whole life insurance policies typically have higher premium rates, but they also come with a cash value component. The cash value of a whole life insurance policy functions as a savings account, and a portion of premium payments grow tax-deferred over time.
After a certain amount of time, stipulated in the policy, the accumulated cash can be used for loans or other purposes while you are living, or can be an increased death benefit to your beneficiaries. It can also be used to pay premiums to keep the policy in place if you can’t afford them any longer.
The life insurance premiums of a whole life policy will remain the same each year, and as long as you keep up with payments, the policy provides protection for life. While premium payments can be more expensive than term life insurance rates, the premiums remain the same no matter how old you are.
A whole life insurance policy is a good option if:
- You want or need life insurance for as long as you live.
- You want to accumulate a savings for later use.
SOURCE: Efinancial
20 and 30-Year life Insurance
If you’ve decided that term life insurance is the best type of policy for your needs, the next step is determining term length and coverage amounts. Term life insurance is available for a wide variety of term lengths, everything from 1 year to as many as 30.
If you’re thinking of purchasing a life insurance policy for a longer term length, think about the future and consider possible long-term financial needs. You may be single now, but in 30 years you could have a family to provide for. You could be currently living in an apartment, but 20 years from now you’ll be in your second home.
Don’t be hesitant to purchase a 20 or 30 year term life insurance policy when you’re young. The rates are at their lowest the younger you are, and a 20 or 30 year life insurance policy can help protect your future family and investments if you were to pass away unexpectedly.
A 20 year term life insurance policy may be a good option if you have long-term debts like a mortgage payment. Securing a term life insurance policy for 20 years can help ensure your family will still have a roof over their heads if you were to pass away. If you have a mortgage payment that will last longer than 20 years or you’re anticipating moving, consider a 30 year term life insurance policy.
Another good time to consider purchasing a 20 or 30 year term life insurance policy is when your children are young. A 20 year term length can ensure your coverage extends through all of their childhood and act as an income replacement during the time they depend on you the most. A 30 year term life insurance policy can also cover future college education payments and even wedding plans.
SOURCE: Efinancial
If you’re thinking of purchasing a life insurance policy for a longer term length, think about the future and consider possible long-term financial needs. You may be single now, but in 30 years you could have a family to provide for. You could be currently living in an apartment, but 20 years from now you’ll be in your second home.
Don’t be hesitant to purchase a 20 or 30 year term life insurance policy when you’re young. The rates are at their lowest the younger you are, and a 20 or 30 year life insurance policy can help protect your future family and investments if you were to pass away unexpectedly.
A 20 year term life insurance policy may be a good option if you have long-term debts like a mortgage payment. Securing a term life insurance policy for 20 years can help ensure your family will still have a roof over their heads if you were to pass away. If you have a mortgage payment that will last longer than 20 years or you’re anticipating moving, consider a 30 year term life insurance policy.
Another good time to consider purchasing a 20 or 30 year term life insurance policy is when your children are young. A 20 year term length can ensure your coverage extends through all of their childhood and act as an income replacement during the time they depend on you the most. A 30 year term life insurance policy can also cover future college education payments and even wedding plans.
SOURCE: Efinancial
Buying Life Insurance Online
Factors to consider
Learn what to research and what factors go into purchasing life insurance. Click to learn more about what affects your life insurance rates.
There’s a lot to consider when purchasing life insurance since it’s an important tool to have in any financial plan. When thinking about life insurance, first start by considering only your personal financial situation. What works best for someone else may not necessarily be the best choice for you.
Begin your life insurance process by thinking about your reasons for purchasing the policy. Do you have dependents like elderly parents or children? Do you have a large, long-term payment like a home loan? Dependents and long-term loans or debts are two of the most common reasons to purchase life insurance, but there are many more. Knowing what you need life insurance for can help you determine the best type of policy, term length and coverage amount for you.
Research the three most common types, term life insurance, whole life insurance and universal life insurance to determine which type is the best for you. Term life insurance is only in place for a specific amount of time, anywhere from 1 year to as many as 30. Whole and universal life insurance are in place for the entire life of the policyholder.
Consider how much coverage you need by using a life insurance calculator or add together your income, any debts or long-term payments, day-to-day bills and utility payments and future expenses like college education.
Think about how much you can afford for life insurance payments, but don’t leave yourself with less life insurance than you need. Term life insurance is typically a less expensive option than whole life insurance. Get a life insurance quote to determine how much premiums will be for the amount of coverage you need.
SOURCE: Efinancial
There’s a lot to consider when purchasing life insurance since it’s an important tool to have in any financial plan. When thinking about life insurance, first start by considering only your personal financial situation. What works best for someone else may not necessarily be the best choice for you.
Begin your life insurance process by thinking about your reasons for purchasing the policy. Do you have dependents like elderly parents or children? Do you have a large, long-term payment like a home loan? Dependents and long-term loans or debts are two of the most common reasons to purchase life insurance, but there are many more. Knowing what you need life insurance for can help you determine the best type of policy, term length and coverage amount for you.
Research the three most common types, term life insurance, whole life insurance and universal life insurance to determine which type is the best for you. Term life insurance is only in place for a specific amount of time, anywhere from 1 year to as many as 30. Whole and universal life insurance are in place for the entire life of the policyholder.
Consider how much coverage you need by using a life insurance calculator or add together your income, any debts or long-term payments, day-to-day bills and utility payments and future expenses like college education.
Think about how much you can afford for life insurance payments, but don’t leave yourself with less life insurance than you need. Term life insurance is typically a less expensive option than whole life insurance. Get a life insurance quote to determine how much premiums will be for the amount of coverage you need.
SOURCE: Efinancial
Application Process
When it's time to get started with buying life insurance, we have what you need regarding the application process and steps to take. Learn more.
Once you’ve made the decisions on which type of life insurance to purchase and how much you need, it’s time to get some quotes to determine how much life insurance will cost for you. The best way to get life insurance quotes is to turn to the Internet and get online life insurance quotes.
It’s best to get a quote from a life insurance company that will offer you multiple quotes. By getting all your online life insurance quotes from one place, you’ll save yourself time and be able to compare life insurance quotes quickly and easily.
Consider it a one stop shop for your life insurance needs. Once you get a variety of online life insurance quotes, it’s easier to make a decision quickly. There’s no hassle of waiting to hear back from a life insurance agent and no struggling to keep information from multiple companies organized. In most cases, it’s clear to see what the best and least expensive option for you is.
Most companies will ask for general information like name, address and phone as well as gender, date of birth, height and weight and a few health questions. It’s very important to be honest when answering questions for online life insurance quotes. If you are not honest, you won’t get an accurate picture of what life insurance rates will be.
In particular, be sure to mention any and all medical conditions. You may see online life insurance quotes that are a little higher because of a medical condition, but there are many life insurance options available to fit your particular situation
SOURCE: Efinancial
Once you’ve made the decisions on which type of life insurance to purchase and how much you need, it’s time to get some quotes to determine how much life insurance will cost for you. The best way to get life insurance quotes is to turn to the Internet and get online life insurance quotes.
It’s best to get a quote from a life insurance company that will offer you multiple quotes. By getting all your online life insurance quotes from one place, you’ll save yourself time and be able to compare life insurance quotes quickly and easily.
Consider it a one stop shop for your life insurance needs. Once you get a variety of online life insurance quotes, it’s easier to make a decision quickly. There’s no hassle of waiting to hear back from a life insurance agent and no struggling to keep information from multiple companies organized. In most cases, it’s clear to see what the best and least expensive option for you is.
Most companies will ask for general information like name, address and phone as well as gender, date of birth, height and weight and a few health questions. It’s very important to be honest when answering questions for online life insurance quotes. If you are not honest, you won’t get an accurate picture of what life insurance rates will be.
In particular, be sure to mention any and all medical conditions. You may see online life insurance quotes that are a little higher because of a medical condition, but there are many life insurance options available to fit your particular situation
SOURCE: Efinancial
How Much Life Insurance Do I Need?
One of the most common questions we hear from clients every day is “how much life insurance do I need?” There is not an amount that will work for everyone because every financial situation is different, so it’s important to evaluate yours when deciding how much life insurance to purchase.
First, consider what you’re purchasing life insurance for. Is it as income replacement? Is the death benefit meant to cover a large payment like a mortgage? Once you have a good idea of what you want the death benefit to be used for, it’s fairly easy to decide how much life insurance you should have.
First, consider what you’re purchasing life insurance for. Is it as income replacement? Is the death benefit meant to cover a large payment like a mortgage? Once you have a good idea of what you want the death benefit to be used for, it’s fairly easy to decide how much life insurance you should have.
Add up all of those expenses and you should have a rough estimate of how much life insurance you need.Be sure to consider how long you want the death benefit cash to be used for and factor that into your calculations.
In addition, try an online life insurance calculator to make sure you are not missing anything and that you are comfortable with the final amount. Your life insurance agent can also help you decide how much life insurance to purchase.
It’s important not to buy more life insurance than you need because then life insurance rates could be higher than you can afford. Conversely, if you don’t buy enough life insurance, your family may not be able to maintain the same standard of living if you were still alive.
Work closely with your life insurance agent to decide what the right amount of life insurance is for you and your family.
SOURCE: Efinancial
In addition, try an online life insurance calculator to make sure you are not missing anything and that you are comfortable with the final amount. Your life insurance agent can also help you decide how much life insurance to purchase.
It’s important not to buy more life insurance than you need because then life insurance rates could be higher than you can afford. Conversely, if you don’t buy enough life insurance, your family may not be able to maintain the same standard of living if you were still alive.
Work closely with your life insurance agent to decide what the right amount of life insurance is for you and your family.
SOURCE: Efinancial