Insurance policies provide policyholders with financial protection and help mitigate risks from unexpected events. Homeowners insurance covers your home from storm damage, and health insurance pays medical bills when you get sick. Life insurance, however, is unique in that it protects the family of the policyholder. Purchasing life insurance is a decision that will impact your overall family financial plan. Should the unexpected happen, a life insurance policy will provide a death benefit to your loved ones or other beneficiaries to cover final expenses and debts or provide financial support. When you decide to purchase life insurance, you need to consider the type of policy you need and the coverage amount that your family would require.
Instead of short-term coverage offered by a term life policy, you might consider whole life as a permanent type of life insurance. Whole life insurance offers permanent protection and ensures that your designated beneficiaries receive a death benefit payment no matter when it occurs. As an added benefit, a portion of the premiums is typically placed into a special savings account that allows the policy to build cash value over time. Depending on the policy, eventually, you can borrow against the cash value of the policy, use it to pay premiums, or withdraw it. Many families prefer a whole life insurance policy as it provides financial protection and investment.
If you are considering a policy, you should seek more than one whole life insurance quote to find the best coverage for your needs. Let’s take a look at why you might consider several whole life insurance quotes.
As discussed, a whole life policy provides a guaranteed death benefit payment to your beneficiaries should the unexpected happen. A tax-free death benefit could help pay off debts, supplement lost income, pay funeral costs, or cover other financial obligations. On average, whole life insurance products provide around $250,000 in coverage. When looking for permanent coverage with whole life, you should get several quotes and compare your options. You want to ensure that you get the right coverages and policy amount to protect your family.
Based on your answers to health questions and your medical history, you will be placed into a health classification based on how an insurance company views your longevity. Depending on your classification, you could pay significantly more or less for whole life insurance. Insurance companies don’t charge the same rates for each health category. While you may be considered a preferred customer to some companies, you could end up paying less than the preferred plus rate with another insurer. Shopping around will help you see all of your rate options and find the best one for your needs.
Insurance companies consider various factors when determining premium rates. Factors from your age and medical history to your lifestyle choices and gender will inform your policy premiums. Similar to health classifications, there is no standard for how insurance companies treat smokers or women with depression. While most companies will increase rates with age and lifestyle choices such as smoking, there isn’t a universal standard. Collecting multiple life insurance quotes will allow you to see various rates for your situation.
Many consumers think they won’t qualify for life insurance if they are a certain age or a longtime smoker. While it might be a little more expensive, most of these people can find options for coverage. Comparison shopping will help you find the right policy that provides the best premium for your particular circumstance.
Whole life insurance will provide peace of mind that your family’s needs are cared for should something happen. With careful consideration and comparison shopping, you can examine all of your options before choosing a product and plan that will ensure your family’s future.