Buying life insurance is not fun. Nobody wants to think about his or her death, but not having life insurance is one of the worst mistakes that you can make. If you were to pass away, something tragic were to happen to you, they would be left with a massive amount of debt and final expenses.
When you’re looking for life insurance, it can be an overwhelming process. There are thousands of companies and several different kinds of plans that you can choose. It’s important that you get the best kind of coverage for your family.
The most common type of life insurance that people buy is a term insurance plan. These plans are effective for the length of the term, and then they expire, and the applicant will have to reapply for life insurance coverage. Term insurance plans are one of the most popular options because they are the cheapest form of insurance coverage, but they aren’t the only option. There are several other kinds of insurance that you should compare before you pick the one that works best for you. Each kind has its own advantage that makes it a great option for your insurance coverage.
Whole Life
The next most common option for life insurance protection is a standard whole life insurance plan. These policies are a permanent form of coverage, which means that they will never expire. As long as you pay the premiums for the plan, you’ll have life insurance coverage. These policies are a great purchase for anyone that doesn’t want to have to worry about losing their life insurance in the future, but they are going to be more expensive than a traditional life insurance plan.
No Exam
Another great option for life insurance is to buy a no medical exam plan. These plans will allow you to get insurance coverage without having to take the medical exam before the insurance company accepts your application. These plans are a great option for anyone that needs life insurance but can’t be accepted for a traditional plan because of health or any pre-existing conditions.
One of the biggest advantages to no medical exam plans is that anyone can buy one of these plans and you can be accepted for coverage much quicker than a traditional plan. With a no medical exam, you’ll be able to get insurance protection in a matter of days. If you want to get life insurance as quickly as possible, a no medical exam policy is going to be one of the best options.
Universal Life
Universal life insurance is another form of permanent coverage, but it has a few advantages that a traditional whole life plan doesn’t have. The best benefit of these plans is the flexibility that they have. As your life changes, you can increase or decrease the death benefit of the life insurance policy, which is going to increase or decrease as well. These plans are a great option for anyone that wants to hold some control over their life insurance plan.
As you continue to age, your life insurance needs are going to change, and it’s nice to have your life insurance be able to change with it. While these plans will give you flexibility, but they are going to be more expensive than a traditional whole life insurance plan.
Burial Insurance
Another option for life insurance coverage is to purchase a burial insurance plan. Burial insurance plans are identical to a life insurance plan, but they offer much smaller coverage. Most burial insurance plans are only around $25,000, which will cover funeral expenses and other small debts that are left behind.
These plans are an excellent insurance option for older applicants that no longer hold thousands of dollars of debt but don’t want to burden their loved ones with any funeral expenses. The obvious benefit of these plans is that the premiums are going to be much cheaper than a larger life insurance plan.
Guaranteed Universal Life
Another unique kind of insurance coverage is a guaranteed universal life insurance policy. These plans will give you extended coverage until the age of 95, and they are cheaper than a universal life. They will not offer the cash value aspect that most life insurance plans have, but you will save money in monthly premiums. These plans are a great option for retired applicants who want to have coverage but don’t want to pay the expensive premiums of a traditional whole life insurance policy.
Life Insurance Coverage Options
As you can see, there are dozens of different kinds of insurance policies that you can choose from. Each of them has different benefits that you’ll need to consider based on your needs. There is no “perfect policy” that is going to work for every family. One helpful tool I’ve found that compares the best companies for all types of insurance plans mentioned above is my friend, Chris Huntley’s, Sweet Rates Sorter.
