Life Insurance

Many people may not realize that an affordable alternative to costly permanent life insurance policies even exists. They hear of the often steep rates that come with a permanent (or whole) life insurance policy, and think they cannot afford life insurance, and may consequently leave their loved ones uncovered. But an affordable alternative does exist, and that is term life insurance.

There are two basic types of life insurance: term life insurance, where you choose the coverage amount and length of the policy; and whole or permanent life insurance (of which there are many variations), which combines an investment product with life insurance.

Below are some of the advantages to buying term life insurance:

Whole life insurance is expensive, due mainly to its investment aspect, while term life insurance is very affordable. Whole life insurance policies often cost thousands of dollars a year, as opposed to the mere hundreds of dollars a year that the majority of term life insurance policies cost consumers. For example, if you are a healthy, non-smoking 35 year old male, you can get 10-year, $100,000 term life insurance policy for as little as $8.50 a month (or as little as $8.08 a month for a comparable female)*.

Term life insurance is simple to understand, and allows for personal choice. You pay a (low) monthly premium based on the term length and amount of coverage you choose. That's it. Simple. You can choose term lengths such as 10, 20 or 30 years, and coverage amounts anywhere from $100,000 to several million dollars.

You can invest your hard-earned money yourself, rather than having an insurance company do it for you (which is what happens with whole life insurance). Insurance companies are often very conservative with how they invest your money. If you are at all savvy in investing, or good at saving, the extra money a whole life insurance policy costs may not be for you. Instead, buy a cheaper term life policy, and invest the money you saved yourself.

Term life insurance is good for short term needs. Two good examples of this are to cover your children's college education and to cover your mortgage. Parents could buy a policy that expires after their children graduate from college to ensure that the full education is paid for (in case anything happened to the parents). Or, the main breadwinner in a house could buy a term policy that matches the length of his or her home's mortgage.

Here are some additional term life insurance tips:

Buy enough life insurance to meet your needs; life insurance is not the place to skimp. Especially because term life insurance is so affordable.

Also, match the term to your needs. Make sure your dependents are covered until they can provide for themselves, or that your spouse is covered until retirement income becomes available.

Buy when you are healthy, and try to match your terms to when you will still be healthy. When you get into your 50s and 60s, it may be harder to find affordable term life insurance.

Don't lie on your policy; as life insurance companies will investigate before paying. If you do not admit to a habit, behavior or health risk on your application, your beneficiaries may not receive the money after you pass away. That is the whole point of your life insurance policy, to leave money for those left behind, and it would be a shame if they didn't receive what you had paid for because you were not truthful on your application.

Shop around for the best rates at InsWebýs quick and easy online marketplace. Term life insurance policies can vary by 50 percent for the same coverage. Thatýs why itýs best to compare quotes at InsWeb to find both the rates and policy that is right for your personal situation.

Life Insurance: Different Needs For Different Stages Of Life

Studies show that over 25 percent of American households lack any member with life insurance. And the approximately three quarters of us who have life insurance do not have adequate coverage levels for the stage of life we are in. It is important to review your policy as your life changes, to ensure that your coverage is sufficient for your new needs. Review the list below that points out some of the stages of life during which you should reexamine your life insurance policy.

Engaged or Newly Married
Itýs an exciting time in your life, and not one that you might want to think about things like life insurance during. But there are now two of you, and you need to make sure that both are covered in case anything happens to either spouse. There may now be two sets of debt to consider, and you may take on ownership of more things.

While most childless newlywed couples do not need extremely high levels of life insurance coverage, once you add any type of ownership to the deal, it is important to make sure you and your loved one are covered in the event of a catastrophe. If you buy a house, this becomes especially important. Many people are comfortable and easily pay their mortgage payments when they are part of a two income household (with no dependents), but many would struggle if something were to happen to their partner and they had to survive on their income alone. Be sure to cover each other with moderate amounts of life insurance, even if you are barely out of the chapel. If either spouse had a life insurance policy before they got married, remember to consider changing your plan and/or your beneficiaries.

Divorced or Widowed
Being newly divorced or widowed is a difficult time. As much as you may be hurting, you must also consider practical matters such as life insurance. You may have increased financial obligations now (for example, paying for accommodations and expenses on one salary instead of two, etc.), and you may have lost coverage you previously had through your spouse. If you donýt have any children or anyone else who is financially dependent on you (such as elderly parents), you may have a reduced need for life insurance. But if you do have any dependents, it is important to make sure they can persevere financially if anything were to happen to you.

Starting a Family
This one may seem a little more obvious, but in the excitement of planning your nursery or picking baby names, you may forget to adjust your life insurance to your new needs. In addition to other important forms of insurance, such as health insurance and coverage for catastrophes such as fire, flooding or burglary, it is also important to make sure that you will be able to take care of your kids financially. If your spouse were to pass away, would you be able to provide for your children's many needs? Or, if you were a stay at home parent and the major breadwinner of the household were to pass away, how would you take care of your child(ren)? Make sure you and your spouse have adequate life insurance coverage to protect both yourselves and your children. And make sure to adjust your beneficiaries as your family grows.

Change in economic status
Studies show that nearly 65 percent of the affluent in the U.S. lack adequate life insurance coverage. Wealthy working people are advised to purchase life insurance with a policy amount at 7-10 times their annual household income. When you or your spouse get a large raise, own a company that takes off, come into a large amount of money through inheritance, or sell something of value, remember to adjust your life insurance coverage accordingly.

Change in lifestyle or occupation
There are many factors that contribute to your life insurance costs. Some of them relate to poor health, obesity, smoking, and occupations and lifestyles. If any of these change during your life, you should reexamine your life insurance policy. For example, if you were a pilot (or instructor of aviation or scuba diving, mountain climbing/river rafting guide, etc.) but have changed professions to something considered safer, your life insurance rates will likely be lower now. Similarly, if you have lost a significant amount of weight or quit smoking, your rates are likely to go down.

Another occupational change that could affect your life insurance is if you begin working for yourself. You may have had coverage through an employer that you no longer have. Your new company could also mean increased financial risk for you and your family. In either case, it is important to get adequate life insurance coverage.

Recently retired or about to retire
Life insurance needs may not be as high as they are at other stages in life for those that are newly retired. But, it is also true that most new retirees do need to think about maintaining an adequate level of coverage. Consider your children or spouse you may leave behind. Even though your children may be grown and on their own, and your spouse may be able to live comfortably on his or her retirement savings, there are many special circumstances in which they may find themselves in financial trouble if you were to pass, or vice versa, you if they were to. If you are very ill before you pass away, you will incur many health costs, many of which may be passed on to your spouse or children if you pass away. Many seniors may have to live with a child if they are on their own and need help, and this may put a financial burden on the affected family members. There are also funeral costs to consider. It is important to ensure that your family members can recoup any financial losses after you pass away.

All health insurance at Insurance advisors comes with the option of adding life insurance. The Houston Health Insurance Plan, Dallas Healht Insurance Plan and LasVegas Health Insurance Plan that are custom designed for people living in these urban areas. We do serve all of Texas and Nevada and you most likely qualify for these health plans if you live in one of these states.

For more information on life or health insurance give us a call

Insurance Advisors

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