Securing the best term life insurance quotes means understanding your choices.
While health and life insurance cover different needs, both categories have permanent or long-term and temporary or short-term options. Permanent or long-term insurance policies have no time limit, remaining in effect as long as the policyholder pays the premiums. Conversely, temporary or short-term policies are in effect for a predetermined number of months or years, resolve debts or pay funeral expenses. Called “terms”, each life insurance policy’s rules are specific and dictate when the policy ends. Short term health insurance provides coverage when you move from one health insurance company to another or while you wait for open enrollment at a new job. This temporary health coverage can also help you avoid the tax penalties for not having health insurance if you cannot find affordable options and do not qualify for subsidies through the Affordable Care Act (ACA). While associated with health care, long term care insurance addresses needs that health and life insurance policies do not. Long term care insurance can preserve an individual’s independence by providing in-home personal care that health or life insurance policies do not cover. The policy may also cover nursing home expenses, assisted living costs, hospice care, and adult day care in circumstances where assistance may extend beyond a predetermined time. The policy may help you avoid depending on relatives for financial help by reimbursing cash payments, and your premiums may qualify as tax deductions. All health insurance policies target different services within health care, and all life insurance policies cover the policy holder’s death expenses. However, permanent life insurance policies offer cash value or investment options. The cash value component allows the policyholder to build and then either borrow against or withdraw the accumulated tax-deferred savings held in the insurance account. Endowment policies are similar, but policyholders pay premiums for terms of 10, 15 or 20 years. The policy pays out at the end of a set term, with the policyholder’s death or when you cash in early and receive cash equal to the policy’s value. An endowment combines the investment opportunity of permanent life insurance with limits similar to those associated with term life insurance.
Of the life insurance options available, the most affordable may be the level term life insurance policy. Without the cash value or investment components, these policies have lower premiums because coverage usually ends before the policy must pay out. Even though applicants must complete a medical exam to document their health for some plans, the lower prices attract young adults, those in poor health and individuals with higher health risks like smokers. While many policyholders purchase contracts with 10, 20 or 30-year terms, there are renewable term insurance policies that let you continue from one term to the next without interruption or reapplication. However, this usually comes at a higher rate due to age or if the policyholder’s health deteriorates. You can also find increasing and decreasing term life insurance policies with death benefits that rise or fall with the policy’s term while the premiums remain the same.
As short term health insurance fills the gap between old and new permanent health coverage, some life insurance policies grow with the holder’s needs or income. One type, convertible term life insurance, is attractive to young adults as policyholders start with a term life insurance policy and then switch to permanent life insurance at a later date. If you pay your term life insurance premiums on time and meet the policy’s conditions, you won’t need a new quote to move to the permanent plan. In many cases, you can also skip a second health screening. Like health insurance that grows as you add family members, convertible term life insurance policy can expand as you accumulate property. Another type of life insurance can help with debt. The best term life insurance quotes evaluate your family needs, your financial goals and your debt profile. Credit coverage or credit life insurance may be the answer if you have credit cards and loans. Also called payment protection insurance (PPI) or loan repayment insurance, these policies have terms linked to the amount of outstanding debt instead of months or years. The amount of debt covered also determines the policy’s value. Creditors can require borrowers to purchase credit coverage before approving loans, but they must also apply the policy’s death benefit to the holder’s outstanding balance, protecting surviving dependents from financial ruin. Credit insurance doesn’t cover everything, so you may need additional policies. To discover your full range of options, work with a company that can access information from several insurance providers. If you are looking for minimum coverage, burial plans, also called “funeral insurance” or “burial insurance”, defray mortuary, cremation and funeral costs with premiums that are lower than traditional insurance plans. The policyholder names a beneficiary, which is the person charged with using the insurance proceeds to pay the outstanding debts. Some plans are “guaranteed issue”, which means no one is denied coverage. Guaranteed issue policies do not require medical examinations, making the premiums higher. Some have waiting periods before they issue payments. Policies known as simplified issue policies require applicants to answer a medical questionnaire but do not require a health examination. Simplified issue policies are good for individuals with incomes under $100,000 who are looking for the best term life insurance quotes.
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