It’s a beautiful day. The sun is shining. Maybe you are watching your son’s baseball game or looking out over a vast ocean. Maybe you are waking up to have breakfast withy our family.
In seconds, your life could be over. You never know when that last day will come. No one likes to think about death, but it is an important part of our living. With a little bit of planning ahead, you could feel at ease about the inevitable.
Give your family the kind of protection they deserve even after you are gone. When most people think of life insurance, they think of death. The simple truth is, life insurance is for the living. Whether you are a newly married couple, or a single parent, if you have people in your life that depend on you, then you have plenty of good reasons to get life insurance.
Planning Ahead
Life insurance is about planning ahead. It can provide financial security to those you care about, cover medical bills, funeral costs, mortgage, on other living expenses.
If you are the primary provider for others, it can also replace your income for them, or give them money for college or other expenses. It can even be used to earn a cash value that you can withdraw or borrow against later.
At CheapInsurance.com, we want you to feel free to live your life with no regrets. We can find the right policy and the right amount of money that helps your family feel secure.
With our staff of helpful representatives, we work for you, the consumer, and not the agency. It is our job to make you feel comfortable with your cheap life insurance purchase. We have been helping people attain insurance since 1974, and we have only grown in knowledge since then.
It is important to keep current on cheap life insurance.
It used to be that professionals recommended you carry a benefit amount of 10 times your yearly income. Times have changed, and the price of everything has gone up.
Most experts now recommend you get coverage equal to 20 times your household income. Studies show that most American families are under-insured, by a gap of about $320,000.
To find out how much insurance you need, you can click on the quote button above and get started.
How Does Life Insurance Work?
A policy is a contract between a life insurance company and someone who has a financial interest in life value of someone else. Sometimes it doesn’t have to be a person but a trust. Putting money aside for another individual in case of death can greatly benefit family and friends.
Not only can life insurance help your family and friends carry out your wishes when it comes to funeral arrangements, schooling for children or grandchildren, and even paying off debts, it gives peace of mind.
Even though reading a policy can be intimidating, the basic facts of life insurance are pretty simple.
You pay a monthly payment to the insurance company, and if you die, the people listed to receive the money will get the payout of your total coverage amount.
You have no idea when you’ll need insurance so that’s why it’s important to plan ahead. There are many types of insurance products out there, but it can really comes down to two products: permanent and term life insurance products.
There are over 800 life insurance companies in the United States. With this amount, you are most likely going to find the perfect policy to meet your needs. Only 60% of all American have a life insurance policy in the works. This means that there are a lot of families still out there who will be stuck paying for the deceased.
Term Life Insurance
Term life insurance is a product that is called temporary because it’s meant to protect you for a certain amount of time.
It comes in forms of 5 year term, 10 year term and all the way up to 30 and sometimes 40 year terms.
For example, if you purchase a 20 year term policy, your rate will be locked in for 20 years and will not go up or down in a level term product.
If you die within the 20 years, your dependents will receive the money.
However if the 20 year term expires and you don’t convert or renew the coverage, you’re no longer covered.
Permanent Life Insurance
Permanent life insurance is a life insurance product that can provide life insurance protection for your entire life. Depending on the type of product or company, it can range from coverage to age 90, 100, 121 or lifetime.
There are a few different types of permanent life insurance coverage, but there is enough variety to fit most people’s situation of needs. Most Permanent Life insurance policies have an investment aspect. A portion of your payment is used for an investment from which you can borrow down the line. This is known as “cash value.” The catch of this is that the policies can be much more expensive than a policy that is only for death protection.
The cheaper permanent option is a “Permanent Term” option. This is the most affordable permanent insurance, although it is more effective as life insurance protection rather than an investment.
How Do I Know If I Need Life Insurance?
How are you sure that life insurance is right for you? Or that you even need it?
If you have anyone in your life that depends on you financially for any reason, you need cheap life insurance.
If you area spouse or a parent of a child, when you pass, you will leave them with all of tour financial obligations. Make sure they are in situation where your debts don’t become their burdens.
Sometimes business require life insurance. Maybe you are a business partner and other people rely on you, life insurance can cover costs you may owe.
If you are a child of a dependent parent that you solely care for, you will need life insurance.
If you are the sibling to a dependent adult who you care for or pay for, you will need life insurance.
Life insurance doesn’t just mean covering costs after death. It means helping those who are mourning a loved one.
Even if you are single, with no children, you should have life insurance. You may not have to leave a college fund for anyone, but your debts and obligations still need to be paid for.
Your insurance needs will change over time, just like you will. Experts suggest you review your policy every six months to make sure you have all the coverage you need. You work hard for what you have, and to provide for those who are depending on you.
Knowing you have a plan for them if you are not around can help you feel more secure, and more able to enjoy life. After all, isn’t that the point?
How Does Life Insurance Work?
Life insurance is a contract. You sign up for a certain amount of life insurance. The Insurance company takes in your premiums monthly. When you pass, the company pays out what is called a “death benefit” to whoever you leave the money to. The difference between the premium that the insurance company has taken in over the years, and the death benefit, are their profits. This works like any other insurance, expect for there is only one payout. Now, there are other types of life insurance policies, where you can cash out at a certain age. But you can usually only take out a percentage, and it will cost you.
Key players
Insurer: the insurance company which is responsible for paying out claims.
Owner: is the person paying the premiums every month to the insurance company.
Insured: is the person for whom the payments are being made and whose life the policy is based on.
Beneficiary: is the person who will receive the money once the Insured is deceased.
Many people think of life insurance as an investment tool. But really, it is more of a risk management tool. You want to reduce the financial risk for others after your death.
Sometimes life insurance can be a tax deduction, so in this way it can have investment opportunities.
How Much Will I Pay?
Life insurance has a broad range of policies. You can have a very expensive policy or a very cheap life insurance policy. An average term life policy for a 35 year old in good health is around $500 a year for a million dollar benefit.
For whole life, you could spend more than ten times that much. So you have to weight the risk and value for you and your family.
Here is a simple calculation to give you an idea of how life insurance you may need.
Most commonly you will want a beneficiary of 10-15 times the yearly amount you make.
If you gross 100 thousand dollars a year, then your life insurance policy should be anywhere from 1 million to 1.5 million dollars.
This insurance estimate may seem like a lot. You are not required to use this calculation. But think of your expenses, and who will be paying for those. You not only want those expenses covered but enough for your death, burial and any debts left behind.
If this process seems a little to much at times, that’s okay. Being someone you trust into the calculation. You may need to bounce your life insurance ideas off of more than just an agent. Make sure the person who you are leaving the money also knows how much it is. They should also know your plans for the money and an idea of what your life and objectives are after life.
Terms You Should Know
- Adjuster: Person who evaluates claims for the insurance company and determines loss on claims.
- Beneficiary: The person who is awarded claim money in the event of a loss.
- Broker: A person who compares and finds insurance policies for a consumer. They do not represent a particular insurance company but rather the consumer.
- Carrier: Another name for the insurance company.
- Conditions: These are limitations on policies that can deny coverage for certain criteria defined in the policy.
- Death Benefit: Payments made to a beneficiary due to the death of a person in a covered accident.
- Family Member: A person who resides with you at the same address who is also related to you. A college student who lives away from home is also usually considered as a family member for policy purposes.
- Policy Holder: The person who purchases the policy, usually the beneficiary.
- Reinstatement: When a policy lapses due to non payment, once you pay your premium you policy may become effective again.
- Underwriter: Person who determines insurance premiums and policy limits.
