Last Updated on August 5, 2016 by lifepolicyshopper
Quick Tip: Complete the Instant Quotes form to receive an instant listing of carrier quotes - free - with no obligation. You can begin your free online research - right now...
A Young Parent’s Guide to Life Insurance
Everyone is out to scam people today with false advertisements, poor service, and broken contracts. Just about everyone has been wronged by a company that promised to perform a service and never did. Integrity in transactions and business dealings has decreased worldwide, and because of it, the average consumer is skeptical and distrusting today.
Insurance companies tend to fall right smack in the middle of this conundrum. Seen as merely agents for robbing people of their hard-earning money, insurance companies get a bad rep when it comes to being labeled as respectable businesses. And we’re not here to tell you that some life insurance companies aren’t out to rob you of your money – some probably are! But, with access to the Internet easier than ever before today, you have a weapon as the consumer – you have access to unlimited information and resources. If you take the time to research in depth, you don’t have to ever being wronged by a business again.
When it comes to life insurance we have two primary types of policy to choose from – term life insurance or whole of life insurance. Many people find it hard to come to a decision about which type of policy to take out but the decision you have to make really isn’t that complex and both will offer good levels of cover for the majority of people. Let’s take a closer look at your options.
The most popular type of life insurance is, without a doubt, term life insurance. This kind of policy will be set out to last for a specified ‘term’ – i.e. it will last for a set time period. So, you can take out a life insurance term policy for 25 years, as an example. During this 25 year period you will make your policy payments and you’ll have the protection of the policy if you die. So, your next of kin can claim against the policy in the event of your death. But, at the end of the 25 years your policy will be finished and you’ll get no further protection from it.
Many people opt to take out a term life insurance policy because they know that they will no longer have a great need for insurance at the end of the specific term. For many people this kind of policy will end at around the time that they retire so their mortgage will probably be repaid, their families will be grown and they won’t need to make provision for their family to have such a large lump sum or income if they die. So, a term policy can suit them very well indeed, giving them cover during the years when they really need it and finishing when they don’t.
A whole of life policy, on the other hand, will suit those of us who want protection for the rest of our days. This kind of life insurance is designed to last until you die – so you’ll be covered in the short, medium and long term. A lot of people who opt for this kind of life insurance do so because it can be set up to help with issues such as inheritance planning, although many people simply prefer to get cover that is guaranteed to make a payment at some point so that they feel that they are getting some return on their policy payments. There is a guarantee of payment with a whole of life policy that isn’t there with a term policy. Once your term policy is finished that really is it – you are only guaranteed a payment if you do die while the policy is in force.
Many people make their choice here based on their budget. The fact that a term life insurance policy may not ever make a payment (i.e. the fact that you will probably survive your policy) means that insurers can offer lower costs. A whole of life policy – with its guaranteed payment at some point – is consequently more expensive. The choice you make here will be a personal one and may well depend on your financial circumstances. The vital thing to remember is that some form of life insurance cover is vital for most of us – especially if we have a family to consider and we can consequently get great protection from either kind of policy at the end of the day.
Young adults can find very inexpensive term life insurance
Young, new parents are an especially susceptible group of people to insurance scams. When a young, innocent looking woman walks into a car dealership, the employees there almost always ratchet up the pricings and finance because they’ve identified the consumer as naïve and unaware. New parents are naïve and unaware about many “adult” things, including raising children. Insurance companies can detect this and alter their rates to siphon even more money from them. But, with the protection of the Internet today, it doesn’t have to be so easy. Every tidbit of information, reviews, and complaints are out floating in cyberspace for you to digest and think about before pursuing life insurance.
There’s one invaluable tip that will save you thousands when you decide it’s time to buy life insurance. And, as a new parent, you should undoubtedly have life insurance. It’s the ultimate safety net to protecting your family’s future, well-being, and financial stability if anything happens to you. Your children are the apple of your eye – life insurance can ensure they live long and fruitful lives if something happens to you. It doesn’t have to be scary and it doesn’t have to be expensive. It’s important to learn more about it and acquire it for the future stability of your family. Here’s a trick for saving a ton when you signup for life insurance.
Use Internet to your full advantage. Meaning, access online quote engines for comparing premium rates side by side to evaluate a perfect one for your family. Does this sound too obvious? Putting a quote in our online search engine will instantly give you the best rates possible. Today’s information age gives consumers a power in the selection of their rates and products. You have the ability to research these quotes. No longer do you have to face life insurers blindsided.
That’s why it’s so important to do even more research beyond this piece for your life insurance purchases. Did you know you can even get premium breaks if you’re a fit person? We wrote about it in a previous article here. That’s right, by providing your insurance company with proof of your physical activity, they can lower your annual premium. And as a young new parent, chances are your physical condition is probably pretty good. If it’s not, it’s not too late to get started with a dedicated exercise routine.
Life insurance companies like John Hancock have capitalized from this development and have incorporated a fitness discount when pricing their life insurance premiums. All you have to do is attend your annual checkup, receive proof of your organs’ pristine condition, and email or fax it on over to your life insurer. It is important to note that not all of them will give you a discount for this proof. But, a fair share will, and it’s important to take time scouring the Internet and select a company that will cut your premium in half. Many life insurance companies are set to add this discount to their platforms soon in order to stay competitive with places like John Hancock. Believe it or not, your dedication to running and exercise just got more profitable to you.
And it all starts with just a click of your mouse. Hopefully, this piece has persuaded you to signup for life insurance immediately – if not for yourself, do it for your family. Shop around until you get the premium you’re looking for – and if you’re not being rewarded for your physical fitness, you should be. You’re the consumer. You’re in control. And as a new, unaware parent, this fitness development is profitable to you as a young insurance buyer. You should be taking full advantage of it. Go secure a policy that rewards you for your physical investments today so you never have to worry about the longevity of your family again.
Quick Tip: Complete the Instant Quotes form to receive an instant listing of carrier quotes - free - with no obligation. You can begin your free online research - right now...