Why do I need life insurance?
Life insurance gives you peace of mind knowing that your family will be taken care of in your absence. You put life insurance in place to protect your family financially when you no longer can, by paying the mortgage, college tuition, and final expenses. But getting life insurance can be complicated, so YourPolicy is here to make it simple.
Before you begin your search, give some thought to how much life insurance you will need to replace your income now and in the future. Consider education costs, family events and retirement savings. Think about the people who depend on your income today – family, business partners, loan co-signers – and how you can be sure they’ll benefit from your forward-thinking decision to buy the best coverage that you can afford.
Who benefits from life insurance policies?
While life insurance protects the most important people in your life from unforeseen tragedies, it also provides you with peace of mind that they will be protected from financial burdens caused by your absence.
Term Life
Term life insurance is straightforward and easy to understand. As the name suggests, it’s good for a certain period of time (a term). Term insurance is simply the promise of a death benefit for your beneficiary. It is much less expensive than whole life, and a good fit for a family that wants a large amount of insurance for relatively small premiums. People who purchase term insurance are mainly concerned about temporary needs like paying off a mortgage or providing money for college. They simply want to give their loved ones financial freedom in the event of their passing.
Whole Life
Whole life provides a death benefit as long as you keep making your premium payments. There is no set period of time as there is with term insurance. This type of insurance also provides cash value in addition to a death benefit. It’s more complex than term insurance and far more expensive. Those who purchase whole life insurance are interested in having a cash value component in addition to a death benefit.
Universal Life
Universal life insurance is permanent life insurance with an investment savings component. The premiums are typically low, much the same as with term life insurance. Most of these policies contain a flexible-premium option. This means that policyholders can submit premiums that are more than the cost of insurance. The excess premium is added to the cash value and accumulates interest. If there is enough accrued cash value, policyholders may skip payments without worrying about a lapse in the policy.
Final Expenses
Final expense insurance is just another name for a small whole life insurance policy. Insurers sell these smaller policies to make them more affordable. This coverage has a death benefit to cover funeral or memorial service expenses. The beneficiaries, however, can use this death benefit for anything from outstanding medical expenses, to funeral costs and even to paying property taxes.
You have questions. We have answers.
Common Life Insurance Questions.
Our team of expert agents here at Your Policy will shop the top companies, compare prices and coverage, and connect you with the best options for your lifestyle. After selecting a plan, you’ll have to complete a medical exam. After the exam, a Your Policy agent will offer you a customized plan based on your needs.
When you buying life insurance, individual needs vary. We recommend that you talk with one of our licensed sales agents to help determine the right coverage for your lifestyle and your budget. It’s a good idea to consult your attorney or financial advisor for any financial planning advice.
Losing a stay-at-home spouse who is not earning income can lead to increased costs in child care and time away from work for the surviving spouse. you also need to consider final expenses and outstanding debt. Our recommendation is at least 50 percent of the primary breadwinner’s term life coverage for the stay-at-home spouse.
Yes. Most companies do require a brief medical exam for term or permanent life insurance. This exam is typically less than 20 minutes and can be done at your home or office. The exam is at no cost to you.
Yes. If life events compel you to change coverage, we can help you to modify your existing policy or shop for a new one.
Term life insurance is straightforward and easy to understand. As the name suggests, it’s good for a certain period of time (a term). A whole life policy lasts as long as you pay the premiums.