Life insurance is something many people do not enjoy thinking about, in part because it scares them and makes them face their own mortality, but if you have anyone that relies on you for their economic survival, life insurance is a must. Purchasing life insurance involves many decisions, but overall it is a simple concept – making sure that your loved ones will not have to face financial hardships should something happen to you. This includes not only payment for the funeral itself, but also medical bills and regular living expenses.
At one point, it was suggested that people purchase a life insurance policy that is equal to five times their annual salary, but these days people buy policies that cover much wider ranges. Regardless of how much money you leave your loved ones, having a life insurance policy is of utmost importance, and researching your life insurance quote is very easy these days thanks to the Internet.
Interesting Facts About Life Insurance
Everyone needs a life insurance policy, even stay-at-home parents and those who do not work. Since many people will end up dying from some type of illness, they will likely leave behind some unpaid medical bills that need attention. A good life insurance policy will help those left behind pay these bills off and take the financial burden off them. Before deciding whether you need life insurance, consider the following statistics.
- When a person’s income increases, often their concern for life insurance decreases
- More than 40 percent of all Americans have no life insurance whatsoever
- Of people that have life insurance policies, roughly two-thirds of them have it through a work-related or another group plan
- Only 30 percent of Americans have the opinion that their life insurance coverage is sufficient
- Most people purchase life insurance for final expenses, to replace their income and mortgage coverage, respectively
- Roughly 30 percent of people feel that loss of the primary breadwinner would be felt within a month of their death; another 30 percent have no idea when that would occur
- Nearly 60 percent of people say they do not plan on purchasing life insurance
- When it comes to financial priorities, the purchase of life insurance falls to number seven
Clearly, people in the U.S. are still not convinced of the importance of purchasing life insurance, but that does not mean it is not important. Every year, millions of people struggle financially because the person that provided for them beforehand left this earth without having an insurance policy that will help the survivors out.
Types of Life Insurance
Before you research a life insurance quote, it is best to first become familiar with the various types of life insurance available. Types of life insurance include:
- Term life insurance: by far the most popular type of life insurance, this insurance offers the same premium amount for 10 up to 30 years, with the premiums going up as soon as the term is up
- Whole life insurance: these policies offer lifetime protection and allow you to receive some financial benefits even while you are alive
Although a life insurance quote for whole life insurance tends to be more expensive than one for term life policies, they tend to offer more money in the case of a person’s death. Before deciding on a life insurance policy for you, it is best to determine beforehand the exact amount of insurance you need and whether you prefer a whole or term life policy.
Selecting a Quote That Will Accommodate Your Needs
Like many other types of insurance, looking for a life insurance quote is easier if you start with the Internet. There are numerous websites that offer comparison quotes, and the best way to find them is with a quick Internet search.
Of course, it is best to first determine exactly what you want before you visit one of these sites, so that your quote will be both applicable and accurate. Getting a life insurance quote that is guaranteed to fit your needs depends on this all-important step.
Steps to Take Before Purchasing a Life Insurance Policy
When you are in search of an applicable life insurance quote from a reputable provider, there are certain things you should keep in mind while doing so. These include:
- Determine what your financial needs are and the appropriate amount of life insurance you think you need
- Get a quote through an independent broker, because they have no commitment to a particular provider and can provide you with more than one quote to compare
- Keep in mind that life insurance is not for investing, but for protection
- Make sure you get all your questions answered, even the tough ones
- Stay clear of expensive riders that you do not need
- Research all the companies you are considering before making a decision on your life insurance quote
When you need a life insurance quote, keep in mind that it may take some time to get the one you want, so do your preparations and make sure you provide the same information to all the brokers. In fact, with many insurance companies, you have 30 days to review the product and can cancel afterward if it isn’t the one for you.
Other Things to Consider
Getting a life insurance quote means doing your homework on the providers and making sure that you go with only reputable companies. After all, a life insurance quote is only good if it is accurate and delivers on everything it promises at the beginning, which takes a little time to research. It is a smart idea to make a list of the expenses you’d like to cover with the policy, as well as the questions you would like to ask the insurance agent, so that in the end you will have the policy that will work best for you.
The most important things to remember include making sure the coverage amount is appropriate for your needs and that you only work with well-known insurance companies. This will ensure that the policy you choose is the right one for you.