Get life insurance quotes, cost & coverage fast. You need life insurance if you have people who would suffer financially if you were gone. It provides cash to your family after your death to pay the mortgage, food, car payments & other expenses of living.
The only two things that are certain are death and taxes. Life insurance is not a fun subject (neither are taxes). It's not comfortable to talk about and it's certainly not a process anyone is thrilled about. It is, however, a very important part of financial plan because it has a 100% of happening to you, me and anyone else on the planet.
What Does Life Insurance Cover?
Life insurance is a way of helping your family deal financially when you die. It’s intended to provide financial help to your loved ones when your salary or income is gone.
The money (death benefit) can be used to pay: your funeral expense, pay off debts, pay the mortgage, fund your children’s education, cover everyday expenses and more.
What Types Life Insurance Are There?
- Term Insurance: Term life insurance is considered to be the most basic of life insurance available. Term lofe only offers death benefit protection – if you die during the policy term your beneficiaries get a payment.
- Permanent Insurance: This form of life insurance is different from term insurance because it offers in addition to offering a death benefit, it also offers cash value component that can be accessed during the insured’s life. The cash build up is not taxed under current law.
Term Life Insurance – Term is a temporary type of life insurance that covers you for a set period (term) of one or more years – typically 10, 20 or 30. It pays a death benefit only if you die during that term. Term insurance generally provides the largest amount of death protection per premium dollar.
Below are some of the most common forms of permanent insurance:
Whole Life Insurance – Whole Life a permanent type of life insurance that protects you for as long as you live as long as you pay the premiums. With the most common type, called straight life or ordinary life insurance, you pay the same premium for as long as you live. Whole life is used to extend the coverage past a certain term, and can also build a cash value tax free over time.
Universal Life Insurance – Universal Life is a newer, permanent and flexible type of life insurance policy where the premiums you pay, less expense charges, are deposited into a policy account that earns interest tax free. Charges for the insurance are deducted from the account.
Variable Universal Life Insurance – Similar to universal life this type of permanent insurance is flexible where the premiums you pay, less expense charges, are deposited into a policy account that invests in mutual funds or other investments. This means that the funds have the opportunity to grow more than some of the other types of permanent insurance, and it also means there is risk for losses in value if the stock market declines. Charges for the insurance are deducted from the account.
Survivorship Life Insurance – Survivorship Life covers two people (like husband and wife), and pays a death benefit at either the first death (first to die) or after both have passed away (last to die). Survivorship costs less than two individual permanent policies, so it can offer a larger death benefit for your beneficiaries.
Final Expense Life Insurance – Final Expense also know as ‘burial insurance’ is purchased by seniors to pay for high cost of a funeral and other related expenses such as a headstone, burial, flowers, and memorial service, so their remaining family does not have to be burdened by the bills.
What Life Insurance Doesn't Cover
- Commits suicide. If the insured kills themselves. In some states there is something called a ‘suicide clause’, which means if the insured commits suicide within a certain time frame, the beneficiary would not get the death benefit.
- Commits Fraud. The insurance company is going to investigate the cause of death. They will look at the events that led to the death and compare them to the original application. If the insured smokes or has some other health issue, or skydives, cliff jumps etc. and did not disclose it on the original application they can deny the claim.
- Does illegal activities. If the insured dies while committing a crime or participating in any kind of illegal activity.
- Involved in Acts of War. If the insured dies in a war.
- Permanently moves outside the USA. If the insured moves to certain countries.
How Much Does Life Insurance Cost?
- Age – Life insurance gets more expensive as you get older. There is a saying, “The best time to buy life insurance is yesterday.”
- Non Smoker or Smoker – Smokers pay for life insurance.
- Health – Healthier people pay less. Overweight people, those with high blood pressure, high cholesterol and diseases like diabetes etc. will pay more.
- Gender – Women live longer than men and pay less because of that.
- Occupation – Accounts will pay less than people who build skyscrapers.
- Travel amp; Hobbies – If participate in extreme sports like skydiving or travel to dangerous parts of the world, you might pay more.
- Personal Risk Factors – These include your credit history, driving history and criminal history.
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Different States Life Insurance
If you are looking for state specific Life Insurance quotes, costs and information: