Life Insurance Quotes

The term “life insurance” is a bit of an oxymoron…it is not intended to insure your life; how would you be able at attach a price tag to life? Life insurance is intended to insure your loved ones against financial hardship in the event of your passing. While pondering your mortality isn’t fun, it’s necessary to ensure the financial stability of your loved ones.

There are several life insurance options available and it’s important to sort out which type suits your needs best. The first thing you should do is to determine your needs…why do you need life insurance? You should consider life insurance if you it into any of the following categories:

  • You are just beginning your family. Rates tend to be less expensive when you are young and any future children will depend on your income.
  • You are a family with dependent children. Again, your children and spouse depend on your income. You may also want to consider insuring a non-working parent. In the event of that parent’s passing, you will be extra expenses such as childcare.
  • You are retired and your passing will result in a financial difficulty for your surviving spouse.
  • You want to leave extra income to a family member, have a donation made to a favorite charity on your behalf, or have money available for funeral expenses.

Next, consider the different types of insurance that are available. There are four different types of life insurance…Term, Whole Life, Universal Life, and Variable Life.

  • Term Insurance: This is the most basic and most popular form available.  Coverage is purchased for a set price for a specified period of time.  The beneficiary receives the value of the policy.  Most companies do require a medical exam and pre-existing conditions could mean a higher premium.
  • Whole Life Insurance:  This type is similar to term, except that the policy is set for life not a specific period of time.  The premiums remain consistent throughout the life of the policy.  Also, the insurance company invests a portion of the premiums.  These investments may be distributed among the shareholders.
  • Universal Life Insurance: This is a whole life policy that gives you the protection of the policy along with a savings component.  The insurance company chooses the investment; usually bonds or mortgages.  The return of the investment is then put into a cash account.  This account can be used to go toward the premium or can be allowed to build.
  • Variable Life Insurance: This type allows for a wider selection of investment possibilities, including stocks.  Again, any returns on the investments can be used to offset the premium or can be allowed to build in a cash account.

Once you have all of your information, look for a reputable insurance agent; someone you can trust to ensure that you will not be over or under insured.  While difficult to consider, you can feel good about giving your family one less thing to think about.