Choosing The Right Kind Of Life Insurance

Once you’ve decided that you’re ready to get life insurance, you’ll be given multiple choices so that you can get a plan that’s customized for you. Every company will try to sway you in a different direction based on what makes them the most money. In order to not fall prey to those tactics, you should know what you want before heading into the arena or deal with a trustworthy company like monumental life insurance.

Decision #1: What kind of life insurance do you want?

Your choices are:

-​Term Life

-​Whole Life

Term life insurance is for a fixed amount of time. This means that you can take out a policy for ten years, paying the same amount every month during those ten years. Term life is a bit of a gamble, though, because you are anticipating death to occur somewhere during those ten years. Otherwise if you’re still alive at the end of the policy, you may not be able to renew. It will depend upon your age at the end of the ten years as well as your current state of health. Your policy amount may be significantly lower as a result, too.

Whole life insurance is a little different. You are becoming insured for your whole entire life, no matter how short or long it may be. This is the more expensive route but the benefit is that there is a cash reserve of what you’re paying into that can be cashed out upon maturity, if needed, or before.

Decision #2: How much money do you want?

The choices are virtually limitless starting at around $10,000. Life insurance can be a monumental decision. It will be what funds your funeral expenses and can leave your family comfortable afteryou’ve passed.

Depending upon pre-existing conditions and age, some companies will only give you a life insurance policy for up to a certain amount. This is because they’re taking a risk as to when you will be cashing in your policy. If you’ve got pre-existing conditions, they may require you to do term life.

The best way to go about becoming insured is to get a policy before you have pre-existing conditions to worry about. So even if you think you’re too young to worry about life insurance, think again.

Decisions #3 and Beyond

You can decide most of everything else with your insurance agent. These things will cover little parts to your plan like who your beneficiaries are and how you’ll make your payments. The most important part of your life insurance is what kind you’ll have and for how much. Those will have the greatest impact of what’s left for your family and when it will be available. Having answered those two questions will get you heading in the right direction for getting insured and will save you from being pushed into a direction you don’t want to go.