So you’re shopping for life insurance, but you’re not sure how to select the right policy for your needs. There’s so much to consider: How much coverage do you need? How long will you need coverage? Should you buy permanent or term coverage? With all of these unknowns, how can you possibly know if you’re making the right choice? That’s where IntelliQuote can help. As licensed life insurance advisors, we are in the business of helping our clients select the right policy for their needs. To get you started, let’s walk through the basics so we can help you find a policy that truly meets your needs.
Term vs. Permanent Life Insurance
Term life insurance is the simplest form of life insurance protection. These policies provide a death benefit at the time of the insured’s death as long as it occurs during the term of the policy. Term policies are less expensive because the rates are guaranteed for a set period of time, such as 10, 15, 20 or 30 years. At the end of that period, policy rates increase substantially due to the rate guarantee period ending at the end of the term. At that time, you may want to consider purchasing a new term policy depending on your needs.
Another type of life insurance is permanent life insurance. There are a number of permanent life insurance products on the market today, and some offer different benefits than others. But all products will pay out a death benefit at the time of the insured’s death as long as the policy remains in place. These policies are more expensive because they are guaranteed to pay a death benefit, as long as premiums are paid.
If you’re looking for an affordable life insurance policy for a given period of time, term life insurance may likely be your best bet. If you’re seeking a policy that will offer cash value earning potential throughout your life, permanent coverage is most likely the way to go.
Selecting a Term
If you choose to purchase term life coverage, you will also need to evaluate the length of time you will want coverage. Perhaps you have a young family you plan to raise and send to college. We recommend purchasing a policy that will provide protection until your youngest child has completed college. If you’re nearing the end of your career and you’re simply looking for coverage to protect loved ones until you’ve reached retirement, a shorter term will suffice.
Determining Your Coverage Needs
Finally, you will need to determine your coverage needs – and that can be quite simple. Consider your financial responsibilities today and down the road: How much do you plan to save for your child’s college fund? What are your retirement plans? What is the remaining balance of your mortgage? For guidance on these and other questions to determine your coverage needs, check out the IntelliQuote life insurance calculator! This tool will help you gain a firm grasp on your needs in no time.
There you have it, life insurance explained. While there are likely still some details to consider, this is a fast and simple look at reviewing your needs. If you’re ready to learn more, we encourage you to complete our quote request form. Additionally, our licensed advisors are available to explain your options and help you select a policy that meets your needs and your budget.
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