It has never been
more important to
provide protection
for yourself and
your family.
Healthcare
Consultants allows
you to get a free
quality insurance
quote from major
life insurance
companies.
Why do I need
life insurance?
Ask yourself: What
would happen to my
family if I were to
die tomorrow? The
first and foremost
reason to buy life
insurance is the
financial protection
life insurance
provides. If you're
single and just
starting out, you
may not need life
insurance. But as
you take on more
responsibilities and
your family grows,
your need for life
insurance increases.
The proceeds from a
life insurance
policy can replace
the income lost to
your family upon
your death. You
might also want to
buy life insurance
to pay off debts and
expenses (a home
mortgage, for
example), leave
money to charity, or
cover final and
estate expenses.
Choose term or
cash value
There are two basic
types of life
insurance: term life
insurance, which
provides life
insurance coverage
for a specified
period of time (the
term), and cash
value (permanent)
life insurance,
which combines a
death benefit with a
cash value
component. Cash
value insurance
offers lifetime
protection, while
term insurance may
be the most
affordable option if
you're buying life
insurance mainly for
the financial
protection it
offers, and your
need for life
insurance is
temporary (until
your children leave
the nest, for
instance). Some term
policies (called
"convertible") will
permit you to
exchange the term
life insurance
policy for a
permanent one at
some point
("convertible"). For
more information,
see the Glossary of
Life Insurance Terms.
Decide how
much coverage you'll
need
The amount of life
insurance protection
you should buy
depends on how much
income your
survivors will need,
how much you own and
owe (your assets and
liabilities), and
the amount of other
life insurance
available to you. If
you're married, both
you and your spouse
should consider
buying life
insurance. One of
the easiest ways to
estimate how much
life insurance
protection you
should buy is to use
a
life insurance
needs calculator.
Pick a number
between 1 and 30
Term life insurance
is generally offered
in periods ranging
from 1 to 30 years.
You may want to
consider selecting a
term that matches
your need for life
insurance
protection. For
instance, if your
main reason for
buying life
insurance is to pay
for your house if
you were to die, and
you have 20 years
remaining on your
mortgage, consider a
20-year term policy.
How much will
it cost?
How much you pay for
life insurance will
depend on a number
of risk factors,
including your age,
your health, whether
you use tobacco,
your family health
history, and the
type and amount of
life insurance
you're buying. Keep
in mind that the
rate you're been
quoted initially may
increase later. For
instance, when you
buy term life
insurance, rates are
guaranteed only
until the end of the
term (annually for
annual renewable
term or at the end
of a specified
number of years for
level term). While
most life insurance
policies can be
renewed at the end
of the term, you'll
pay a higher premium
for coverage.
Shop around
When comparing
quotes for life
insurance, make sure
that the insurance
coverage you're
comparing is
similar. And
remember, any policy
that you buy is only
as good as the
company that issues
it. Find out what
rating the company
has received from
major ratings
services, such as A.
M. Best or Standard
& Poor's. These
companies evaluate
an insurer's
financial strength
and claims-paying
ability. The company
giving you a quote
should provide you
with this
information. You can
also contact your
state's department
of insurance to find
out more about an
insurer's record.
Submit an
application
Once you're ready to
purchase a life
insurance policy,
you'll fill out a
life insurance
application that
contains questions
about your current
and past health
history and
lifestyle. You'll
generally be
required to take a
medical exam,
arranged and paid
for by the insurance
company. However for
some policies (such
as those under
$100,000, for
example) allow you
to obtain a policy
without the medical
exam. The answers
you give on your
application, along
with the results
from the medical
exam and your past
health history, will
help the insurance
company determine
whether to offer you
a policy, and if so,
at what price.
Learn the
lingo
Maybe a life
insurance contract
isn't as exciting as
a best-selling
novel, but you
should read it
anyway. Policy
provisions, the
amount of benefits,
the premium, and
other charges you'll
pay will be listed
along with other
important
information such as
the beneficiaries
you've named and the
premium guarantee
period. Make sure
you understand
everything in the
policy. Under the
laws of your state,
you may have a "free
look" period
(typically at least
10 days) during
which time you can
cancel the policy
without penalty.
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