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Matt King
Life Insurance Editor |
Everyone has different needs, and not one size fits all when it comes to term life insurance. Perform a review of your life insurance policy a minimum of every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating more or less protection.
If you are going to make a good choice when purchasing life insurance, you need to understand what type of policies are available. Term life insurance, cash value life insurance, whole life insurance, universal life insurance, and variable life insurance all have unique benefits for different people. When you buy life insurance, you want a policy that fits your needs at a affordable cost.
The sole purpose of mortgage life insurance is to pay off your mortgage if you pass away while you still owe money on your home. Proceeds from this type of insurance do not go through your heirs, but are paid directly to the lender. Term life insurance can cover more than just the balance of your home loan, and you can still have it match your mortgage length, say 20 or 30 years. |
It is important to review your life insurance policy as your life changes, to ensure that your coverage is sufficient for your new needs. These moments in life include: having a baby, getting married, getting divorced or becoming a widow, a new job, buying a home, or even retiring.
Term life insurance provides you with coverage for a specific period of time (between 10 and 30 years). Life insurance pays a benefit to your designated beneficiaries only if you die during that term. It is recommended that you purchase a life insurance policy equal to 5 to 10 times your annual salary. In most cases, an exam is required to qualify.
If you've experienced a heart attacks, you can still qualify for life insurance. There can be major variations in rates between life insurance companies for heart attack survivors. Some carriers require longer windows of recovery time before insuring you, or before lowering your rates, while others’ windows are shorter.
When you have to select your life insurance beneficiaries, consider the various situations your family and loved ones might be facing when you pass away. If you name a beneficiary in your policy, the money goes directly to that person or organization, and does not go through your estate. |
