Are you eighteen or eighty? It doesn’t matter; direct life insurance is a good investment. Most policies help pay for funeral costs and provide some funds to support remaining family members after you are gone. If you are considering to get direct life insurance, but do not know how much coverage or what options to choose, here are some helpful guidelines.
Guaranteed Insurance with No Questions Asked
There are life insurance policies that do not require a physical exam or health questionnaire. If this is a big concern for you, you can invest in these types of policies, which cover you regardless of any pre-existing condition and do no fluctuate whenever a change in your health status is reported. In fact, you do not have to report changes in your health status at all when you buy a “guaranteed acceptance” policy. However, if you choose to share your health information because it is all good, you may enjoy a discount on your policy.
Term Life Insurance
You probably don’t know the difference between term life insurance and a regular policy; the explanation is this: term life policies help you budget. Put simply, you can get as much life insurance coverage as you want, usually up to one million dollars, for the amount you can reasonably afford every month. The payments are typically spread out over a period of ten years, and you agree to make these monthly payments for that entire time. If you should pass away accidentally during the ten-year term, the policy still pays out but subtracts the amount of the payments that will be missed for the remaining term years of the policy. The good thing about this option is that you can get a lot of coverage for little money and most insurance companies will allow you to convert it to a regular life insurance policy after a specified time.
Direct Life Insurance for Interim Insurance Loss and Beyond
Some employers offer group life insurance as an employee benefit. In the event that you lose your job or your employer decides that they will no longer help pay for this benefit and are cancelling the group life insurance, you can purchase interim life insurance. What this type of insurance does is cover you during the timeframe that you are losing your group coverage but continues to cover you beyond that for as long as you want and need life insurance. Ergo, for a brief period of about one to two months, depending on your current policy’s cancellation terms. Get coverage by two life insurance policies.
Get Coverage For Where You Are
For most newlyweds, the beginning of the marriage is spent building wealth together. If you were to interview couples who had been married a decade or longer, they would likely tell you that their finances have drastically increased from the point when they first got married. When selecting a policy, only get coverage for where you and your partner are financially, currently. Purchasing a policy that far exceeds your needs will force you to pay a higher premium, unnecessarily.
For example, if you and your spouse plan on living in a rental for the first five years, there is no need in investing in a policy that offers a mortgage payoff option. Since you don’t have a mortgage, you will be paying for a feature you won’t use. Make adjustments to your policy as you and your partner make adjustments to your living arrangements, get salary increases or expand the size of your family.
Choose Term Over Whole Life Policies
For your first life insurance policies as a couple, it’s a smarter idea to choose a term life insurance policy rather than a whole life policy. Term life insurance policies have a specific date of maturity and they don’t build a cash value. As the name would suggest, a whole life policy, is intended to last your whole life and they do build a cash value.
For these reasons, term life insurance policies are a less expensive option
If you’re a young couple who doesn’t have a lot of money to spend, a term policy can make life insurance affordable. Once you and your partner have more money to spend towards a policy and you incur more property and savings, you can then change your policy to a whole life insurance plan.
Having direct life insurance as a new couple doesn’t have to put you in debt. You can get the coverage you need while still staying within your budget.