Ignore the Radio Ads About Life Insurance, But Please Read This Post

We often hear radio or TV ads about how important it is to get life insurance. Well, you can ignore the high-pressure ads that promise out-of-reach rates and don’t disclose all their fees – but please DO pay attention to this blog post. Life insurance is critical and it can be affordable – if you choose a term policy.

You might think the only thing to worry about when someone passes away is the debt that survives him, but that isn’t the case. Losing a loved one also raises other money questions:

• How will I financially provide for surviving children?
• Will I be able to cover all funeral and burial costs?
• Do I have enough money for unpaid medical bills?
• How do I meet our living expenses now that one income is gone?

Get an Answer in 10 Minutes

What if there was an application you could complete in just a few minutes? And once you were locked in, the price wouldn’t change, no matter what happens with our rocky economy. If getting approved quickly for a term life insurance policy appeals to you, here’s how to get started.

If you’re wondering why I recommend term vs whole, let’s first look at the two types.

What are the two types of insurance?

Term life insurance is the simplest type. If you were to die, your spouse or children (or other beneficiary) will receive a fixed amount of money. You can choose a “term” of coverage that lasts 10, 15, 20 or 30 years. The price and death benefit both remain the same through the entire term, and you have the option to renew and apply for another term after that. This type of policy doesn’t have any monetary/cash value, but it is very affordable and will come through for your family in spades when most needed.

Whole or permanent life insurance is a policy you take out to cover the rest of your life. Each month, a part of your premium goes into an account that (you hope) will grow over the years. You can access or borrow against this money. In the event that you pass away, your beneficiaries will be paid the death benefit on the policy, and nothing more. So can you guess the two obvious drawbacks here? First of all, you can make more money off a good mutual fund than you will in a life insurance “savings account.” Secondly, if the cash you deposited into your account all of those years wasn’t used, then it’s GONE when you die. The insurance company takes what’s left.

You can get more details about these two types here.

How much coverage can I get?

Most people are surprised by the affordable price for a huge amount of term life coverage. Check out these rates for a women in excellent health:

A man in fairly good health at age 40 can get a $500,000 benefit for just $32.00 per month, and that’s for 15 years of coverage.

You really do get a lot more coverage for your money going with term.

What do I need to apply?

• You’ll just need to answer a few personal, legal and health-related questions
• No need to upload any documents or proofs during the application process
• A valid SSN and drivers license number

That’s pretty much it!

How much coverage do I need?

It makes sense to get a policy worth 10-12 times your annual income. So, if you make $50,000 a year, you need a policy worth around $500,000–600,000.

Remember, the death benefit paid to your family isn’t just replacing your income; it can be used to pay down debts, cover funeral and burial costs, save for education, or provide a cushion against unexpected expenses. Securing life insurance ahead of time is a practical step to take when preparing your family for the potential loss of a loved one.

Let me know if you have any more questions about reducing financial stress in life by getting term life!

 

 

 

This post was made possible by a collaboration with Responsival