What is life insurance and how does it work? Purchasing life insurance provides a safety net for your loved ones in the event of your death. A life insurance policy is a contract that states that if your premiums are paid and the policy is active when you die, your beneficiaries will get a death benefit payout that can be used for final expenses, debt repayment, or even day-to-day expenses.
What is the best life insurance policy for me?
If you can afford it, some experts recommend having life insurance coverage equal to 10 to 15 times your yearly salary. This guide can assist you in deciding whether to purchase a term or permanent life insurance policy:
- If you’re just getting started with life insurance or want to fill a temporary gap in coverage before switching to a longer-term policy, a 1-year term is a good option.
- If you’re looking to supplement another policy, you’re nearing retirement, or your funds are limited but you want to offer your family with some protection in the event you pass away, a 10-year term is a good option.
- If you’ve started a family or plan to do so soon, consider a 20-year term to ensure financial security for your children until they reach adulthood.
- If you want to offer a safety net for your loved ones until you retire, or if you have a kid with special needs who will require on your care long after they reach adulthood, consider a 30-year term. This may also be the best solution for you if you have a mortgage.
- If you want coverage well beyond retirement and the ability to withdraw or borrow against your policy’s built-up cash value, consider a permanent policy like whole life.
Options for coverage start at $5,000 and go up to $2 million or more. In general, the younger and healthier you are, the more low your rates can be – with eFinancial, costs start at just $14 per month. (See the disclaimer.)
eFinancial partners with top-rated life insurance carriers to bring you low rates and a choice of simplified life insurance solutions, such as RAPIDecision® Life, which allows you to get life insurance without taking an exam.
Keep in mind that permanent life insurance is more expensive than term life insurance. And the longer you keep a term life insurance coverage, the more you’ll pay.
What is the cost of life insurance?
The cost of life insurance varies depending on your individual circumstances. This takes into account a variety of factors, including your medical history and activities.
What kind of life insurance do I require?
It’s not as difficult as you would imagine to figure out how much insurance you require. You may easily estimate your life insurance needs and see how reasonable a coverage can be by answering a few questions and completing some easy math.
What are the many forms of life insurance policies?
There are various types of life insurance policies, each of which caters to a distinct set of requirements. The following section explains the differences between term, whole, and universal life insurance.
Term life insurance often covers the following:
- a certain amount of time
- Could be used to supplement income.
- It’s possible that some other costs will be covered.
- You might be eligible for a no-medical-examination policy.
You might be eligible for a coverage that doesn’t need a medical exam. This alternative, rather than a medical exam, asks a series of thorough health, financial, and hobbies questions.
Whole or universal life insurance often provides coverage for the following:
- Coverage for the rest of your life, as long as the insurance terms are followed:
- Assistance with income replacement is available.
- Providing more income
- Providing assistance with estate planning
- May include an extra fund (side cash fund) that you can contribute to in addition to your standard life insurance and that can grow over time.
Please keep in mind that Universal Life premiums are subject to change.
Which life insurance policy is best for me?
Because everyone’s scenario is different, you’ll have to decide for yourself which product is ideal for you. However, in general, these individuals choose:
Term life insurance is a policy that lasts for a set period of time.
- The primary breadwinner
- Parent who stays at home
A whole or universal life insurance policy is a policy that covers you for the rest of your
- Leave an inheritance to the heirs
- Individuals with a high net worth
- You must cover your own funeral costs.
What is the purpose of life insurance?
Life insurance allows you to plan ahead and provides long-term financial stability for your family at a time when they are most in need. Although you can’t put a monetary value on your loved ones, a term life insurance policy can assist protect their future. Determine how much coverage you’ll need and for how long, and the GEICO Insurance Agency, LLC and its partners can help you find a low-cost life insurance policy that’s right for you and your family. Get a life insurance quote online or call us at (888) 532-5433 to have peace of mind that your loved ones are safe.
Please keep in mind:
The preceding is intended to provide general information and policy descriptions to assist you in understanding the various types of coverages. These descriptions do not pertain to any specific insurance contract, and they do not change any definitions, exclusions, or other provisions that are specifically specified in any insurance agreement. To fully understand your coverages, we recommend that you speak with your insurance representative and read your policy contract.
You will be directed to the websites of Life Quotes, Inc or Ladder Insurance Services, LLC if you opt to acquire a rate quote online. GEICO Insurance Agency LLC does not own these websites. Any information you give them directly on their websites is subject to their privacy policies, which you should read before proceeding. GEICO Insurance Agency LLC. is not responsible for their privacy practices or how you use either website.