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The Life Insurance Blog

Helping millions of Americans become educated
in making decisions about their life insurance needs

                                                    

Decisions, Decisions: What to Consider When Choosing Life Insurance?

Mar 1, 2017 10:20:00 AM

life insurance types.pngIt's never pleasant to discuss or even think about your own demise, but making legal and financial accommodations for your loved ones is just the right thing to do. In fact, putting the right measures in place to take care of loved ones after you're gone can ease the burden of these awkward conversations and give you some much-needed peace of mind.

One way to plan for these uncertainties is with a life insurance policy. If you've decided to purchase life insurance to protect your loved ones' financial future, you've made the right choice. You still have a few decisions to make, however. Here are several things to consider so that you choose the right insurance policy for your needs.

Your Different Choices in a Life Insurance Policy

When you buy a life insurance policy, you'll be presented with several options. Two basic types of policies are the term life insurance policy and a universal life policy. A term life policy provides coverage for a fixed period of time, such as 10, 15, or as long as 35 years at a fixed premium. Once that period is up, either your policy expires, or you can continue coverage at an increased rate.

A universal life insurance policy is permanent insurance. This means that, provided you continue to make your premium payments, you will have life insurance protection with this policy for the rest of your life. The policy also has a cash value component from which you can take out loans, pay premiums, or increase your retirement income. Universal life policies are also flexible, giving you the ability to lower or increase your coverage in the future.

Decide Which Coverage Factors Are Most Important

As you compare the different insurance policies, it might help to consider your coverage goals so that you make sure your choice meets your particular needs. For example, if you only want life insurance while your children are young and are looking for the most affordable option, a term life insurance policy is probably the best choice.

If you are interested in supplementing your retirement income or providing for a spouse after your death, even later in life, then a universal life policy might be a better option. While a universal life policy has higher premiums, it does have the advantage of the cash value component. There are also some life insurance riders that can add on things like disability or long-term care insurance to your policy.

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How to Compare Life Insurance Policy Quotes

Once you've decided which type of life insurance policy is best for your needs, it's time to request some quotes. Let's assume that you decide to purchase a term life insurance policy -- you can complete a simple needs assessment and then request a quote to receive responses from multiple insurance companies. As you compare your quotes and the benefits provided with each policy, simply ask questions if you need something clarified. Once you make your selection, you'll be glad to have peace of mind in knowing that you've safeguarded the financial needs of your loved ones.

Knowledge is power. The more you know, the easier it is to make an intelligent choice. Everyday life, as well as certain events and circumstances, require you to make choices. And peace of mind is gained when you feel good about the decisions you make.

When it comes to life insurance, IntelliQuote is there for you to make the intelligent, well-informed choice. From term life insurance to universal life insurance and final expense insurance, we make it easy for you to compare, shop and save. Get multiple quotes now and make the intelligent decision for Life.



 

Topics: Universal Life Insurance, Term Life Insurance, Life Insurance