Life Insurance Advice - American Life Insurance

Looking for life insurance quotes and rates online, pay attention to quotes from Nationwide, Allstate, American Family Insurance, Amica, Farmers Insurance Group, Esurance, Unitrin Direct. Affordable insurance is offered by First Indemnity of America, Chubb Group, Progressive, State Farm Insurance, Prudential Financial, and AARP. Follow the links below to browse through life insurance rates by state.

Life Insurance is a contract between you and insurance company. It is designed to provide your loved ones with money in the case of your death or long-time illness. Some policies let the customer borrow money or instantly receive accelerated death benefit if he/she gets seriously ill. Life coverage is especially crucial if you are a principal earning person in the family. When you insure your life, you financially protect those who you name your beneficiaries.

The major reason to buy life insurance is the people who depend on you. By doing so, you can guarantee your earning capacity in case something happens to you. Imagine what could happen to your family if you left them high and dry with all those loans, mortgage and children’s education. So consider life coverage if you: have children, non-working spouse, elderly parents, beneficiary you want to leave money with minimum tax consequences or business.

There are many types of life insurance. All depends on your financial abilities and needs. Feel free to choose among Term Life Insurance, Whole Life Insurance, Endowment policy, Permanent Life Insurance, Adjustable Life Insurance, Variable Life Insurance and others. You can find all necessary information about them online. Some policies come with a built in savings element. Some are designed to protect your belongings. Different policies last different time periods: 5-30 years.

Group Insurance is issued to a company or organization and covers its employees. It’s an annual renewable plan that can be later converted into individual if you quit. Group Plan is usually cheaper than a plan purchases individually. Downsides of Group Insurance are: it might not be tailored to your needs. If you already have Group Life Insurance and thinking of an Individual Plan weight all pros and cons: your future in the company, mortgage, children, health, etc.

Term Insurance is the simplest type of life coverage. Its policy lasts from 5 to 30 years. It is also called Temporary Life Insurance. It pays death benefit in the term of the policy in case the customer dies. Cash Value Insurance works just like Term Life Insurance except it accumulates savings. Go for a Cash Value Insurance if you want to have a “nest egg” plus your life protected.

The main big benefit of Whole Life Insurance is its policy of non-increasing lifelong premiums. It doesn’t make much sense when you’re young and would probably be cheaper to have a different type of insurance policy. But it does pay off when you’re older. With age your level premiums become less than the sum it’d take to insure you.
Universal Insurance is a type of Whole Life Insurance except it gives you more freedom to vary premiums, death benefit and timing.

Mortgage Life Insurance is designed to protect your family from a possible risk to lose your home if you die. It’s actually called Decreasing Term Life Insurance. It guarantees to pay off the debt in case of death of the insured person. The death benefit is equal to your current mortgage balance. It will decrease each time you pay off your mortgage. If you own a business it makes sense to insure your life. Your company as a beneficiary will receive a premium.

Age. The older you are the more expensive your life coverage will be.
Sex. Males live less than females which makes their policies more expensive.
Health. People with poor health pay high premiums or are uninsurable. It’s a fact that smokers pay bigger premiums.
Lifestyle. Your premiums might be bigger if you’re often engaged into risky activities or travel a lot to different countries.

Companies’ policies and quotes vary from state to state. But in most companies you can cancel your insurance and get a complete refund only if you change your mind in a certain time period. It might be 10 or 20 days of “free look” period when you can revise your policy. If you missed this period and don’t wish to continue paying for your coverage then it will lapse.

To calculate an approximate number you should answer several questions. How long will it take your family to make ends meet if you die? How long will it take your children to graduate, your spouse to retire or get a job? Then calculate the annual income you earned, living expenses, college for your kids/child care/big expenses - your family members’ personal income. Multiply it by the time they will need to recover. This is a sum your family will lack if your life is uninsured.