Best Life Insurance Companies for April 2022

The passing of a loved one is never easy. And unfortunately, emotional hardship is not the only difficulty, either. It can also be accompanied by new expenses and lead to financial challenges as well. However, there are steps you can take to help mitigate these effects. 

A life insurance policy is an important safeguard that can help protect your family in the event of an unexpected illness or accident. The specific policy you should choose will ultimately depend on your individual needs and finances, but no matter which one you choose, you should be able to enjoy robust coverage and flexibility.

Signing up for life insurance requires you to designate beneficiaries to receive monetary support after you die. Your premium, which is a fixed amount, can be paid either monthly or yearly, and the beneficiary will receive a set amount of money (also called the death benefit) after your death. 

The amount of the death benefit and length of the coverage period are variables that figure into the price of your premium.

There are two types of life insurance products: basic life insurance and life insurance bundled with a quasi-investment product. Bundled products -- including whole life, universal life, permanent life and any policy with a cash value component -- are generally more expensive and complicated. 

Term life insurance, a type of basic life insurance, is the most inexpensive and straightforward choice for most people. 

"If I need to make sure my family or business is protected in the case of my passing prematurely, I want to focus on term insurance," said David Gastwirth, an insurance strategist with American Business. "It's the fundamental cornerstone of one's insurance plan."

Death benefits for term life insurance typically start at $100,000 and go up to $3 million, which should be an adequate life insurance product to cover most people's needs. (In some cases, you can get a term life insurance policy with a $5 million benefit.) 

All things being equal, Gastwirth recommends erring on the side of more coverage since the cost of a life insurance policy increases as you age -- and if you develop health issue complications later in life, you could become uninsurable. 

The best time to buy life insurance is when you're young and healthy, but it becomes more important as you get older. Most experts recommend buying a policy with a death benefit equal to 10 to 12 times their annual income and a term long enough to cover living expenses and future financial liabilities, such as mortgage payments and college tuition. 

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