Life Insurance
Purchasing a Life Insurance Policy
Life insurance is sold through insurance agencies. They conduct enrollment and will have their individual processes. If you’re ready to begin looking for a life insurance policy, do some research and learn about all of the different types available. One of the common requirements for some life insurance policies is underwriting. If you’re beginning the life insurance process, be prepared to go through this step.
Underwriting
Some life insurance policies require underwriting. This is the process of sharing health history and providing medical proof, so that the insurance agency is aware of the health situation they’re insuring. For many policies, underwriting is essential.
If you have a serious health concern, it’s most likely still possible for you to get life insurance. You’ll want to select a plan without underwriting, which may cost you more. Though premiums may be higher, it’s still a great way to ensure your family will be taken care of in the future. The only way to know what options you have available is to research within your area. Setting up appointments with multiple insurance agencies will give you a better idea of what’s possible. While you’re at your appointment, ask for a quote.
Types of Life Insurance Policies
There are several types of life insurance policies, three of the most popular being term life, whole life, and universal life.
Term life only lasts for a set amount of time before the policy expires; this typically ranges between 10 and 30 years. If the policyholder dies within the given term, then the beneficiary will receive the death benefit. However, if the policyholder dies after the policy expires, the death benefit will not be provided.
Whole life insurance is a type of permanent insurance, which means it will not expire like a term life policy. Not only does this policy consist of a death benefit, it also provides cash value that accrues interest at a fixed rate. This cash value can be withdrawn when enough value accumulates.
Universal life insurance also has a cash value. The premium you pay for this policy goes towards both the cash value and death benefit. With this type of policy, you have the option to adjust your premium payments and death benefit, and once the cash value is built up, that can also be used towards your premiums.
Is Life Insurance Right For You?
If you’ve got dependents or are looking to make provisions for your family, life insurance is an excellent way to do that. Most policies are very affordable and will have a low monthly premium
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