Getting a new life insurance policies could be more affordable than ever. Did you know rates could be as low as $20 a month?
Far too many people are not prepared for the future and its unexpected turns, lacking life insurance in place to take care of their families. In fact, a recent survey by InsuranceQuotes.com1 reports that nearly 40 percent of Americans don‘t have a life insurance policy.
Why is this the case? Most of the uninsured say they find life insurance to be too expensive. Others believe insurance is unnecessary. But the facts show that life insurance is a necessity – and it’s more affordable than you think. Here’s how life insurance can benefit you.
Life Insurance Provides Peace of Mind
Your money worries won’t stop with death. We work hard to make ends meet, and we wonder if our families will be able to survive without our income. What would your family do without your paychecks and financial support?
Life insurance offers comfort and protection. When you have a life insurance policy, you can have confidence that your family will have the money they need when your income is gone. Whether they need money to cover end-of-life expenses or basic expenses, life insurance offers protection.
Life insurance proceeds can provide for loved ones’ financial needs for many years. This is how life insurance acts as a safeguard. While insurance needs vary somewhat from person to person, most people can ensure that their families are sufficiently protected by buying a life insurance policy with a face value of ten to fifteen times the insured person’s annual income.
A Life Insurance Policy Can Cost Less Than $20 a Month
Many people avoid or put off buying life insurance because they believe life insurance policies cost too much. In the long run, however, not having insurance can cost a family more than having a policy in place. Moreover, life insurance for most people is actually affordable, and rates are getting better all the time.
The chief factors that affect the cost of health insurance are age and health, and health status is by far the most important driver of life insurance rates. The younger people are when they first buy insurance, the less they will pay in premiums. Young people in their twenties who are in good health and are non-smokers, according to Geico2, can pay as little as $20 or less per month for adequate term life insurance.
The cost of life insurance also depends on the type of life insurance policy that is purchased. There are two basic types of policies:
Term Life Insurance: Term life insurance typically has a level premium structure, which means premiums do not increase over the life of a policy. When the insured person dies, beneficiaries receive the face value amount of the policy. If the policy expires before the person dies, no funds are disbursed. Term life insurance is usually sold with term lengths such as 15 or 20 years, though policies of other lengths can also be purchased. Term life insurance is the least expensive life insurance product, costing 10 to 15 times less than whole life insurance.
Whole Life Insurance: Whole life insurance is more expensive, but the advantage is that the policy does not expire as long as premiums are paid on time. Many whole life policies also offer a “cash value” option, which means that over time the policy builds a cash value less than the face amount. Policyholders can later choose to cancel the policy and take the cash value. For instance, over a span of many years, the insured might build a value of $30,000 in a policy that has a face value of $500,000 or more. Policyholders can choose to cash out the policy and cancel it, taking the $30,000 with them.
There are various forms of whole life policies. No matter your situation, your health, or your finances, there’s a plan and policy you can afford. For just a few dollars each month, you could have protection that lasts long into the future.
Compare Life Insurance Options Now
Life insurance is one of the easiest and most affordable ways to protect your loved ones. And there’s a solid life insurance option for you. Take the time to compare various life insurance plans and choose the one that is right for you. Search and compare different life insurance policies and costs to find the lowest price and the coverage you need.
Like anything, it’s always a good idea to be aware of the latest research. We recommend comparing at least 3 or 4 options before making a final decision. Doing a search online is typically the quickest, most thorough way to discover all the pros and cons you need to keep in mind.
