How Do You Get Life Insurance? What Are the Benefits?

How Do You Get Life Insurance? What Are the Benefits?

What would you do if your significant other died? It’s a thought that no one wants to consider. However, this conversation is one of the most important that married couples need to discuss. 

It can be hard to make ends meet in a two-income household. When you’re also a parent, there is a myriad of other expenses to consider too. Losing one of those incomes can cripple a family financially.

Life insurance can help keep your family financially sound after you or your spouse dies. It’s a practical commodity, but you may have questions about the amount to get, the cost, who to buy it from, and other questions.

If you’ve ever asked how do you get life insurance, keep reading to find out how, and all about its benefits.

How Do You Get Life Insurance?

The first thing to consider is how much coverage you need. Start by tallying your debt and the cost of final expenses. Then, calculate your income and how much your household might need after your death. 

Finally, consider your remaining mortgage payments and any outstanding or expected payments for schooling. 

From there, determine what kind of life insurance policy is best for you.

Term life insurance tends to be the cheapest option. It usually lasts for a period of ten to thirty years. During that period, if you die, the policy provides financial support to your beneficiaries. 

The benefits end once this term is over.

Whole life insurance is a permanent policy that has consistent premiums. Whole life insurance cash value increases over time too. 

Universal life insurance is another permanent policy. These policies accumulate cash value and provide investment options. These policies are best suited for people comfortable with making investments. 

Once you know which policy you want, research life insurance companies. Companies differ based on rates and benefits. Find a company that meets all of your needs.

When you have a list of providers you like, request quotes from each one. You’ll need to provide information about yourself, personal and medical.

Select the provider with the rate you like best and fill out an application. You may also need to do a phone interview to answer some additional questions.

After this, the life insurance medical examiner will conduct a physical exam. They will take your vitals and draw blood. After your exam, all that’s left is to wait for your approval.

Some of the Benefits of Life Insurance

Life insurance policies through work are usually small – around $25,000. It isn’t a lot of money. After a funeral and end-of-life costs, there won’t be much money left. 

As the amount of the policy increases, so do the benefits. Large policy amounts can replace your spouse’s lost income. You will also have money to help cover debts, the mortgage, college, and other obligations. 

Life insurance payouts are generally tax-free. Policies that accumulate cash can contribute towards premium payments later. Accumulated cash also lets retirees use it for their day-to-day costs. 

Many policies also include provisions that provide benefits before death.

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The death of a loved one is a stressful time. Financial worries can intensify stress when your focus should be on grieving. A sufficient policy will provide ways to provide for your family for years to come.

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