The Ultimate Guide to Finding the Best Family Life Insurance Company
Choosing to buy life insurance is a major decision. To make sure your family is taken care of, you need to find a family life insurance company you trust. Here’s the ultimate guide to finding the best family life insurance company.
Did you know that of the 50 states in the U.S., Hawaii boasts of the healthiest, longest-living individuals?
That’s right. With a life expectancy of 81.2 years, the Aloha State is the place to be if you want to live a decade more after you become a senior citizen. This proves that living in a tropical paradise can do wonders for one’s health.
Studies also show that those who hail from Minnesota also like to live long and healthy–up to 80.9 years!
But just because you live in these states doesn’t mean family life insurance no longer plays a major role in your life. Because no matter where you live, accidents can happen.
This coverage can protect you and your loved ones from the financial consequences a sudden passing can place on your family. Keep reading to learn more about life insurance!
The Numbers Proving Family Life Insurance Is Worth the Cost
Before we delve into the hows of choosing a life insurance policy, it pays to learn more about the whys first. The following facts will help you realize why this specific type of insurance is one of the best investments you can ever make.
All in all, the average life expectancy in the country is 78.7 years. This represents a two-year difference from the two above-mentioned rates! How did that happen?
For starters, some states now only have a life expectancy of around 75 years. The three at the bottom of the list are Mississippi (74.9 years), Alabama (75.7 years), and Louisiana (75.8 years).
All these tell us that on average, people in the U.S. have a shorter time to get the most out of their lives. So, why not do everything you can to live in comfort and luxury?
Even if you don’t aim to have the biggest house on the block, you still want to make sure your loved ones can live with less financial worries. This is especially true with today’s ever-rising cost of funeral arrangements.
A life insurance policy serves as a layer of protection against the inevitable expenses associated with passing away. No one wants to think about death, but preparing for it now can make your family’s life easier after you’re gone.
The Best Life Insurance Meets Your and Your Family’s Specific Needs
Now that you have an idea of why you’d want life cover, next is to determine which type of insurance to get. The best policy is one most-suited to your entire household’s financial well-being.
There are two common types of life insurance: term and whole. It’s vital you compare term vs whole life insurance since these two have major differences, cost, and usage.
In general, they both help provide a safety net for your dependent loved ones when you’re no longer around to provide for them. Your survivors can use the insurance payout to cover funeral arrangements, mortgage, college, and other expenses.
Here’s a more in-depth look at the two.
Term Life Insurance
Of the 27.52 million life insurance policies sold in the country in 2016, majority fell under the term coverage type. After all, it’s much easier to understand for an average consumer than whole life. It’s also about 10 times more affordable.
Because more people prefer term life insurance, you’ll find the smallest to the largest companies having it on offer. The question is, how exactly does it work?
Term life insurance comes with a guaranteed death benefit payment within an agreed-upon term. This term can run anywhere from 10 to 35 years. Once it expires you can choose to renew it or, if your financial situation changed, convert it into a whole life policy.
In the event you pass away within the specified term, your insurance company will release the death payout to your dependents. Depending on the coverage you purchased, this can amount to anywhere between $50,000 to a whopping $65 million.
The fact that monthly premiums won’t change is another reason many consumers opt for term life cover. You only need to keep paying your premiums within the term, and you can keep taking care of your family even in passing.
Your loved ones can also use the policy’s proceeds for:
- Covering the expenses of a special-needs child
- Child support
- Income replacement
- Paying personal debts or other loans
- Making good on business debts
If these are your primary financial concerns, then a term life insurance policy may be your best option.
Whole Life Insurance
Whole life insurance, also often referred to as permanent life insurance, provides coverage for the insured’s entire lifetime. That’s not the only difference, though.
Whole life cover comes with an investment component, or cash value. This amount grows with every passing year. Simply put, you earn money while ensuring your loved ones remain protected when you’re gone.
The best part is, you as the insured can also benefit from this cash value. You can borrow against it for your own needs. In other words, you can enjoy the policy’s investment benefits while you’re alive and kicking!
Here are a few other ways that whole life insurance can serve your financial requirements:
- Same as with term life insurance
- Pay off your mortgage
- Raise your retirement funds
- Leave your loved ones with an inheritance
- Pay for your estate’s taxes
All these additional benefits come with a hefty price, though. Whole life is also more complicated, so it can be easy to make a huge mistake and end up overbuying coverage.
It’s best that you take as much time as you need to compare offers and read up on life insurance company reviews.
Don’t Wait Until It’s Too Late to Buy Life Insurance
A final reminder when it comes to family life insurance is that, like health insurance, premiums become more expensive the older a person gets.
After all, your age has close ties to your health. The nearer you are to your life expectancy, the higher the likelihood of the insurer paying out your benefit sooner.
It’s for this reason that you should start searching for the best life insurance policy sooner rather than later. Besides, accidents can happen to anyone, anytime. It’s best you’ve already made the preparations in case it happens to you.
Want more lifestyle articles like this to help you live fuller? Then check out our blog’s lifestyle section. We have more helpful tips waiting for you there.
