If you are looking for the best way to provide for your family and loved ones after your death is by investing in cheap life insurance. To get the best policy for your specific needs, it is important that you understand the type of cheap life insurance that you are in the market for. When considering different life insurance policies that can meet your needs, it is imperative that you conduct a lot of research to educate yourself on the different types of insurance that help your family out in their time of need. Undoubtedly, it is difficult enough to have to deal with the passing of a loved one but adding financial issues to the stress of losing a primary provider in the family.
Term Life Insurance Options
Many people who are in the market for cheap life insurance are well served to have a look at term life insurance policies. In many cases, you will find this type of cheap life insurance to be among the best deals available to help secure the future of your family in the event that you pass away unexpectedly. The way that term life insurance works is that when you purchase the policy, you buy it for a set amount of years, typically between one to thirty years. If you die during this set period of time, your insurance policy pays your benefactors or survivors the face value of the policy. If the person who is insured does not pass away during the term of the policy, no benefits will be paid out. This type of cheap life insurance does not accumulate any cash value. Depending on the structure of your term life insurance policy, you may only be required to pay your premium once per year. As you get older, the cost of term life insurance tends to increase.
Whole Life Insurance Policies
People who prefer to not have to speculate how many years they have until they pass away tend to prefer whole life insurance. This type of cheap life insurance policy covers you for the entirety of your life or until the policy is canceled. One of the reasons that many people prefer this type of life insurance is because over the years of paying premiums, it accumulates a cash value that can be borrowed against in the event that you have a cash emergency. Generally, the person who is insured is able to take a loan up to a certain percentage of the value out against the cash value. Like any loan, it is always a good idea to repay the amount you borrowed back to the insurance company but if you do not and you die, the balance of the amount you borrowed will be deducted from the total amount of the expected payout your survivors will receive. It is worth noting that some early withdrawals from your term life insurance could be subject to federal taxes, so you will need to account for this at the end of the tax year to avoid surprises and complications when you file your annual returns. As for payments, to keep your policy active you will need to pay regular monthly premiums.
Get Multiple Policies for Maximum Coverage
If you really want to be sure that your family or loved ones are taken care, you might consider investing in multiple cheap life insurance policies, including both whole life and term life policies in place. By having multiple life insurance policies in place, you are making a responsible choice to protect the people whom you love the most. In order to get the most of your policies, be sure to pay attention to the commission fees that are associated with your policies. Over the course of your whole life insurance policy, high commission fees that are imposed on your policy can cut the cash value, so selecting a whole life policy that is described as a “low Load” commission structure generally has lower fees. The more money that you can retain over the course of your policies, the better.
Shop with Multiple Life Insurance Providers
These days it is easier than ever for people of all ages and health conditions to find cheap life insurance policies that meet their specific needs. While you may qualify for better rates on life insurance if you are in better health, even if you are not, there is likely to be an insurance company that will issue new policies to clients regardless of age, weight, lifestyle and existing health conditions. Depending on the companies you are considering, you may be required to undergo a physical examination in order to qualify for coverage. Other life insurance companies do not follow strict policies and issue life insurance based on the answers you provide in a questionnaire. If you do not have a lot of time to talk to a lot of providers, you may consider speaking with a broker or an insurance agent who you already have a business relationship with.
Be Wary of Guaranteed Issue Policies
When you are considering all of the life insurance options that are available to you, be wary of any type of cheap life insurance policy that guarantees coverage for everyone. While you might be attracted to the idea that this type of life insurance does not require you to undergo a physical exam or answer several personal questions in order for it to be issued, you will pay a much higher cost for this type of life insurance over the course of your policy. In many cases, it is a lot easier and more affordable to take the required physical examination and see what kind of rates and coverage are extended to you. Should you decide to get serious about leading a healthier lifestyle over the course of the upcoming year or two, you can always request a follow up examination and ask if there is any chance to modify your insurance premium costs to reflect your healthier approach to life.