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Last Updated on August 18, 2024 by Chris Franchina

Last Updated: August 18th, 2024

Choosing the right insurance to protect your family in 5 steps!

Choosing the Right Life Insurance = Securing Your Family’s Future. When it comes to life insurance, making the right choice can be a game-changer for your family’s financial security. Unfortunately, there are numerous misconceptions that may cloud your judgment or even deter you from considering this essential protection. We are here to set the record straight and guide you in making an informed decision.

Key Takeaways:

  1. Lifestyle Matters: Impact on Your Premium
    • Your lifestyle can influence the cost of your life insurance premium. Factors such as your health, occupation, and hobbies can affect the pricing. Leading a healthy lifestyle can lead to more favorable rates.

  2. Age Matters: Secure Lower Premiums Sooner

    • The younger you are, the lower your monthly premium will be. Waiting to get life insurance could lead to higher costs down the road. Act now to lock in more affordable rates.

  3. Compare and Save: Get the Best Price

    • Life insurance policies come in various shapes and sizes, and so do their prices. It’s crucial to compare different life insurance companies to find the most competitive rates. Our Life Insurance quoting tool allows you to compare 50+ life insurance companies within just 5 minutes, ensuring you get the best price available.

  4. Seek Expert Guidance: Meet with a Licensed Policy Engineer

    • With so many options to choose from, finding the right life insurance policy can be overwhelming. Consulting with a licensed Policy Engineer will help you navigate the complexities and determine the best coverage that aligns with your needs and preferences.

  5. Adequate Coverage: Providing for Your Loved Ones

    • The purpose of life insurance is to provide financial protection for your loved ones if the unexpected were to happen. Ensure you get enough coverage, so your family is adequately supported in your absence.

Debunking Misconceptions: The Truth About Life Insurance

  • Myth #1: Life Insurance is Too Expensive
    Fact: Life insurance is more affordable than you might think. The cost of premiums depends on factors such as your age, health, coverage amount, and policy type. Many people overestimate the cost of life insurance, but in reality, it can be surprisingly affordable, especially when you purchase it at a younger age.

  • Myth #2: I Don’t Need Life Insurance Because I’m Young and Healthy
    Fact: While being young and healthy is an advantage when applying for life insurance, it doesn’t mean you don’t need coverage. Life is unpredictable, and accidents or illnesses can strike at any time. Purchasing life insurance early ensures you lock in lower premiums and protects your loved ones financially in case the unexpected happens.

  • Myth #3: I Have Life Insurance through My Employer, So I’m Covered
    Fact: While employer-provided life insurance is a valuable benefit, it often offers limited coverage. Typically, it’s a multiple of your salary (e.g., one or two times your annual income). This may not be enough to fully protect your family’s financial future. Moreover, if you leave your job, you may lose the coverage. It’s advisable to supplement employer-provided coverage with an individual policy to ensure sufficient protection.
  • Myth #4: Stay-at-Home Parents Don’t Need Life Insurance
    Fact: Stay-at-home parents play a crucial role in the family, providing childcare, household management, and various other services. If something were to happen to a stay-at-home parent, the surviving spouse might have to hire help, leading to significant financial expenses. Life insurance for stay-at-home parents can cover these costs and ease the financial burden on the family.
  • Myth #5: I Have a Medical Condition, So I Can’t Get Life Insurance
    Fact: While certain medical conditions can affect your insurability and premiums, having a health issue doesn’t automatically disqualify you from getting life insurance. Many insurance companies offer policies designed for people with pre-existing conditions. It’s essential to shop around and work with a knowledgeable agent who can help you find the right coverage for your situation.
  • Myth #6: I Don’t Have Dependents, So I Don’t Need Life Insurance
    Fact: Life insurance isn’t just for those with dependents. If you have outstanding debts or financial obligations, life insurance can ensure that your loved ones don’t inherit those debts if something happens to you. Additionally, life insurance can be used to leave a legacy or support charitable causes that are meaningful to you.
  • Myth #7: I Should Wait Until I’m Older to Buy Life Insurance
    Fact: Waiting to purchase life insurance can be a costly mistake. Premiums generally increase with age, and if you develop health issues, it could make coverage more expensive or even unattainable. Buying life insurance when you’re young and healthy allows you to secure affordable coverage for the long term

Step 1 How much life insurance do you need?

Getting enough life insurance to be fully covered and protect your family best. That’s why picking a random number or guessing is not the smartest thing.  As a result, your loved ones could end up without sufficient money to pay their bills. We created a quoting tool to make this process easier. With this tool, you can calculate the exact number of coverage you need. All you need to have to calculate your coverage amount are; the financial obligations you would like to cover if you died and the financial resources you already have. 

Not sure how much you need? Schedule a meeting
Compare Life Insurance To Protect Your Family In 5 steps!

Step 2 Which type of life insurance fits you best?

When it comes to life insurance, two primary forms dominate the market: Term Life Insurance and Permanent Life Insurance. Each type offers distinct features to meet different needs and preferences. Let’s explore the characteristics of each:

Term Life Insurance: Term Life Insurance provides coverage for a specific period, typically ranging from 5 to 30 years. This type of policy is an excellent choice for individuals who require financial protection for a limited time, such as covering a mortgage or children’s college tuition. One of the key advantages of Term Life Insurance is its affordability, making it a popular option for those on a budget.

Key Highlights of Term Life Insurance:

  • Coverage for a specific term, providing temporary protection.
  • More affordable premiums compared to Permanent Life Insurance.
  • Ideal for short-term financial needs and budget-conscious individuals.

Permanent Life Insurance: As the name suggests, Permanent Life Insurance offers coverage for the entire duration of the policyholder’s life. This type of policy is well-suited for individuals seeking lifelong protection and those who wish to leave a legacy for their loved ones. Unlike Term Life Insurance, Permanent policies have no expiration date and provide lifelong peace of mind.

Key Highlights of Permanent Life Insurance:

  • Lifetime coverage that continues as long as premiums are paid.
  • Accumulates cash value over time, which grows tax-deferred.
  • Offers various policy types, including Whole life, Guaranteed Universal Life, Indexed Universal Life, and Variable Universal Life.

Understanding the Policy Types:

  1. Whole Life Insurance:

    • Provides permanent coverage with fixed premiums and a guaranteed death benefit.
    • The cash value component grows steadily over time.

  2. Guaranteed Universal Life Insurance:

    • Offers lifelong coverage with more flexibility in premium payments.
    • The policy’s primary focus is on providing a guaranteed death benefit.

  3. Indexed Universal Life Insurance:

    • Combines a death benefit with potential cash value growth tied to the performance of market indices.
    • Offers a level of flexibility in premium payments and death benefit options.

  4. Variable Universal Life Insurance:

    • Allows the policyholder to invest the cash value in various investment options, with the potential for higher returns.
    • Offers more risk and potential reward compared to other types of permanent policies.

Conclusion: When choosing between Term Life Insurance and Permanent Life Insurance, consider your unique needs, financial goals, and budget. Term Life Insurance provides affordable coverage for a specific period, while Permanent Life Insurance offers lifelong protection and cash value growth opportunities. Consult with a licensed Policy Engineer to determine the best option that aligns with your life circumstances and secures your family’s financial future.

Step 3 Underwriting: What can influence your quote?

Several factors can impact your eligibility for life insurance or influence the cost of your life insurance quote, such as your age, gender, and health. Generally, younger individuals receive lower premiums; women may also receive lower premiums since they typically live longer than men.

Maintaining a healthy lifestyle may also positively impact your monthly premium. Insurance policies often provide incentives and rewards for maintaining a healthy lifestyle. 

What happens during the underwriting process?

During the underwriting process, insurers review your health history and background to determine your eligibility for coverage and the cost of your premiums. The following steps may occur during this process:

  • First, the insurer evaluates your application details, health information, and lifestyle to decide whether to insure you and at what rate.
  • Second, the insurer asks about your smoking or drinking habits, family medical history, occupation, hobbies, and recent or planned travel overseas, as anything that could impact your life expectancy needs to be evaluated.
  • Third, most insurance companies also check your medical history, prescription history, credit history, and driving record.
  • Sometimes, you may need to take a medical exam to provide additional information, and in other cases, changing your lifestyle could help lower your premium.

There are three different types of underwriting:

  1. Full underwriting involves filling out a survey, taking a medical exam, and giving the insurer authorization to gather information about you from multiple third-party sources.

  2. Accelerated underwriting is similar to traditional underwriting but does not require a medical exam.

  3. Simplified issue involves answering a few questions about your health and lifestyle during the buying process, with insurers using third-party sources to gather supplemental information about the policyholder. A medical exam is not required, making this process quick and straightforward.

Step 4 How can you find the best policy?

Our company has created a tool that enables you to compare life insurance policies in less than 5 minutes. In addition, we provide an in-depth needs analysis conducted by a licensed Policy Engineer who will design a personalized plan that perfectly meets your requirements. We understand that obtaining insurance can be a daunting task, so we offer the option to work with an agent or self-enroll to make the process as smooth and effortless as possible. You can easily apply within just 5 minutes.

Step 5 When you are ready to get Life Insurance:

 

Schedule Consult 

Click here to schedule a consult with a licensed Policy Engineer. 

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