With so much information about life insurance available, it’s easy to become overwhelmed. Whether it’s deciding on a policy type, coverage amount, or carrier, there are many decisions to make. However, the process of buying life insurance may be more simple than it seems. Here are ten facts you need to know as you begin to shop for life insurance.
1. Life Insurance is More Affordable Than You Think
The first fact to keep in mind, and one of the most surprising to people, is that life insurance is actually more affordable than you may think. Many people assume that life insurance comes at a significant cost, but the truth is that there are many policies that can easily fit into your budget. For example, term life insurance is a popular policy type due to its affordability and customizability, since you only buy as much coverage as you need.
2. Term Life Insurance is the Most Affordable Coverage Choice
Overall, term life insurance is usually the most affordable life insurance option. While this policy type doesn’t build cash value like whole or permanent life insurance, you only buy coverage for as long as you need it, making it considerably more budget-friendly.
3. Term Life Insurance Lets You Decide How Long You Want Coverage
The primary feature of term life insurance is that you have the option to choose the length of your coverage. Unlike permanent policies, which are designed to last your entire life, term life insurance policies have a start and end date, with common term lengths ranging from 10 to 30 years.
4. You Can Always Make Changes to Your Policy
The adage “out of sight, out of mind” may ring true for life insurance, as it’s easy to move on and forget about your policy after you purchase it. However, it’s important to review your coverage each year to make sure it’s still the right fit for your needs. As your life changes, your coverage amount or term length may need to change too.
5. If You Have Dependents, You Need Life Insurance
If you have loved ones that depend on your income, it’s incredibly important to consider life insurance. A life insurance policy will allow those who matter most to you to continue paying for expenses such as a mortgage, college tuition, utilities, and other daily expenses if you pass away.
6. You May Need More Coverage Than You Think
Your life insurance policy should not only cover end-of-life costs but also current and future financial obligations for your loved ones. Many people have no idea how much life insurance they actually need, but our life insurance calculator can help you get started.
7. Pre-Existing Medical Conditions Won’t Keep You From Getting Life Insurance
If you have pre-existing medical conditions, you may be concerned about your coverage eligibility. Pre-existing conditions are just one of many factors that carriers look at during the life insurance application process, so it’s unlikely that a pre-existing condition alone will disqualify you for coverage. If you’re worried about your health affecting your eligibility or premiums, you can also explore no medical exam life insurance including guaranteed issue life insurance.
8. Your Rate Won’t Increase If You’re Diagnosed With a Medical Condition Later On
Oftentimes, the best time to buy life insurance is right now. If you purchase your life insurance policy while you’re young and healthy, your rate will be locked in, regardless if you’re diagnosed with a medical condition later on. Getting life insurance coverage sooner rather than later can go a long way in keeping your rates favorable.
9. Your Life Insurance Policy Through Work May Not Be Enough
Although group life insurance through your employer can be an appealing benefit, this coverage is often limited. Life insurance through work only covers you while you’re an employee at your company, so relying solely on that coverage can leave your family unprotected if you leave your job. Consider using group life insurance through work as a supplement to an individual policy, rather than your only source of coverage.
10. It’s Important to Shop Around
It can be easy to settle with the first carrier you find, but if you don’t shop around, you may be missing out on a policy with greater coverage or a better price. Shopping around may seem intimidating and time-consuming, but SelectQuote can help make it easy. We’ll get to know your unique priorities and, in just minutes, provide you with multiple quotes from trusted life insurance carriers to find the right plan for your needs and budget.
