Life Insurance

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Life Insurance

There is nothing that is more important than your life, and your ability to make a living. So, it makes good sense to insure your greatest asset- you, by purchasing life insurance! It is a brilliant statement that I concur with because safeguarding your future is your responsibility.

What are the Top 10 Life Insurance Questions?

Life Insurance Overview

Life insurance is a financial product that provides financial protection to your loved ones in the event of your death. When you purchase a life insurance policy, you pay premiums to the insurance carrier in exchange for a death benefit, which is paid out to your designated beneficiaries in the event of your death. The purpose of life insurance is to help ensure that your loved ones have the financial resources they need to cover expenses and maintain their standard of living in your absence. There are several types of life insurance policies available, including term life insurance, whole life insurance, universal life insurance, and variable life insurance, each with its own set of features and benefits. It is important to carefully consider your coverage needs and budget when shopping for a life insurance policy and to work with a financial advisor or insurance agent to help you make an informed decision.

What is Life Insurance?

Life policies have been diversified over time to suit our different goals. Protection policies allow insurers to reimburse upon the insured calamity. It can be death, terminal illness, or disability. The most recent policy adopted in our life insurance industry is term insurance.

Most of us might or have already considered this option. The insurance period is short and is about 10, 20, or 30 years. It makes several choices available, especially after the insurance period elapses. You can choose to decrease the term insurance, convert it to permanent life insurance, or oven renew it. Vast options are available, all tailored to suit our diverse financial needs.

On the other hand, investment policies are a form of saving. You get to pay capital in the form of regular or lump-sum premiums. Then upon the expiry of the insurance period, one is eligible to gain the interest accrued together with the principal amount. The government has provided a tax-deferral basis for life insurance policies, which is quite a steal. Most of us know of whole life insurance, universal life, and varied universal life that fall under this category.

Depending on the customer’s preference, there is liberty in choosing between whole life insurance and term life insurance. Total life insurance, on the one hand, guarantees lifelong coverage, cash value, and unwavering premiums. Term insurance comes in handy when settling short-term financial problems and has provided a range for up to 30 years.

Universal Health insurance is a form of life insurance that gathers for the insured’s hospital costs, including doctor consultations and medicine. The World Health Organization has partnered with the US government to provide universal health coverage to its citizens. An example is the monthly health deductions through health insurance ID cards. Its value has risen an average of $2405 in 2021 to about $2825 in 2022.

When to Buy Insurance?

Age, health history, and gender have been the determinants of life insurance policies. The latest data on insurance rates show that rates for a 70-year-old are 1000% higher than those of a 30-year-old. What does that tell you? Age is a critical factor in determining the rates. The earlier you start paying for the life insurance, the better. In the 20s, you get relatively lower premiums than someone in their 60s. Gender also affects the rates. Interestingly, women and girls have a higher life expectancy than their male counterparts.

Variance in payment of premiums doesn’t stop at that. You get to pay different bonuses depending on the life insurance you choose. Term life usually has lower premiums compared to whole life insurance. It is due to the difference in the years that the money accumulated. We have already established that beneficiaries receive reimbursement for the insured’s death.

Investing in an insurance company goes a long way to ensure that the deceased family is financially secure after their demise. It would be so disheartening to go through grief and be in a financial crisis simultaneously, wouldn’t it? We can all avoid these by planning ahead of time. For instance, young families are encouraged to have life insurance because minors are left behind upon the death of one or both parents. Another category of people who require life insurance are adults who are co-owners of the property, parents with adult children requiring special needs, and people who need burial benefits.

There is an added advantage to having a life insurance policy outside the interest and compensation. These payouts are entirely free. Funeral services are taken care of in this package as well. The beneficiaries also enjoy returns on savings, especially for whole life insurance. It frees them from the constant struggles of trying to raise living expenses after the death of a loved one. These benefits are available to every one of us.

These are at least five insurance companies you can partner with to realize the said benefits.

  • Haven Life insurance company is a good service provider in the term life insurance category. Services are on the company’s online website. It makes it easy to acquire and manage a life insurance policy in the comfort of your home. The sophisticated systems have contributed immensely to the growth of this company. Their customers receive high coverage limits of up to $3 million from five to thirty years. Access to digital will and fitness apps is guaranteed. Applications don’t necessarily require medical exams, which is a plus for individuals who value convenience. On the downside, applications are restricted to people 64 years and below. Also, it doesn’t offer any permanent insurance options.
  • Bestow Life insurance company offers affordable life insurance for individuals between 18 and 60. Coverage limits ranges from $50,000 to $1,500,000. The applications are simple, and you get a quick quote and approval to join the company. Coupled with these is a 30- day trial period before agreeing to the policy guidelines.
  • New York Life Insurance renders various services, including term, universal, and whole-life policies, which build cash value and interest on invested money. They are pretty expensive and have unclear coverage limits and requirements. For instance, a female aged 35 pays $142.67 monthly for a $1 million coverage in 20 years.
  • North Western Mutual Life Insurance Company offers all life insurance options quickly and flexibly. They are not available online, so one has to contact an agent for a quote. The coverage is over $ 1 million.
  • Mass Mutual Life insurance offers financial stability and a higher payment rating. One is free to convert their time insurance to permanent life insurance. With this kind of advantage, the company’s policyholders will reap about $1.85 billion at the end of this year. It should compel us to consider making a step to invest in such companies.

Strive to educate yourself about the different policies available. Educating yourself does pay the best return. Just as Koffi Anan said, Information is power. It is mandatory to understand what life insurance coverage to take, the company to partner with, and their compensation terms. It will empower you to make good decisions for yourself, your family, and any other beneficiary. An informed decision by employing the valuable knowledge you’ve gained. Also, learn to consult the relevant personnel where the need arises.

Frequently Asked Life Insurance questions