Life insurance covers your physical and financial assets based on your needs and goals. In exchange for your monthly premium payments, your policyholder will guarantee a death benefit/lump-sum payment upon the insured’s death. Here are 3 of the most frequently asked life insurance questions answered.
What Are the Different Types of Life Insurance?
When choosing a life insurance plan, you will have many different options. Of these options, term-life, guaranteed-issue, and universal life insurance are the most common.
Term-life insurance plans allow you to choose a certain timeframe in which you carry out your policy. Typically, this period can be anywhere from 10 to 30 years. This plan is beneficial as it generally is less expensive than permanent life insurance and can be used at any point by the insured for various needs such as paying student loans or a mortgage.
Guaranteed-issue insurance, on the other hand, is a more permanent option than a term-life plan. These plans are common for those considered “uninsurable,” i.e., those at high-risk due to medical issues or other factors. Suppose the insured dies due to expected reasons (i.e., the reason why they are considered “high-risk”). In that case, the plan will wait two years before issuing the death benefit.
Universal life insurance is also a permanent option. These plans are typically very flexible with your payments, giving you the freedom to raise or lower your premium payment or coverage amounts throughout your lifetime. However, it typically costs more than a term-life plan.
How is the Cost of a Life Insurance Plan Determined?
There are a few key factors that determine the cost of your life insurance plan. Firstly and most importantly, your set death benefit will greatly determine your payments on the plan. The higher the death benefit typically, the higher the cost of the plan.
The plan’s premium is an equally important factor in the cost of your plan. This monthly payment is typically based on your age, gender, medical history, occupational hazards, and high-risk hobbies.
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Do You Need a Life Insurance Plan?
Life insurance plans are highly recommended to anyone looking for a secure way to pass along the plan’s death benefit safely. The elderly, then, are great candidates for a life insurance policy as they can put money aside for an inheritance.
Also, if you are a parent, a life insurance policy is a great way to set aside funds for their schooling. It may even be beneficial to people in their 20s to lock in a policy at incredibly low rates.
Quality Insurance Help From Quality People—Call World Financial Solutions
Life insurance is complicated—with so many difficult people out there, how do you know what plans are best for you? Our mission is to help people just like you get the insurance help they need with no strings attached. For all of your life insurance questions, call World Financial Solutions at 281-639-7787.