Discussing life insurance might not be a favorite topic for most individuals, but it remains a significant factor worth considering. Shockingly, recent research reveals that almost a third of all U.S. families do not have a life insurance policy. Even among the insured, many don’t have adequate coverage. Are you part of this category? Don’t become just another number.
While thoughts of mortality aren’t comfortable, any responsible person should consider the financial security of their loved ones in the event of a fatal or crippling incident.
Most Common Type of Insurance
Term life insurance is the most widespread type of life insurance. Numerous providers advertise this product online. For instance, if you’re situated in Chicago, you can check Life Insurance quotes in Illinois to discover local businesses that offer this insurance. Guaranteed life insurance isn’t as commonly found, but it caters to those unable to pass the health assessments requisite for regular term life insurance.
Anyone who’s not currently living in a hospital or long-term care facility can avail of guaranteed life insurance. Insurance costs are determined by your age and gender rather than your health records. Given the higher risk with these policies, guaranteed life insurance is pricier than standard term life insurance. However, anyone can apply and be approved for this insurance.
The acquisition process is significantly quicker than common insurance procedures, as guaranteed life insurance entails no background checks. As a result, you can attain insurance in minutes, instead of waiting for the standard 4-6 weeks. It does come with the drawback of higher costs given the significantly shorter processing time.
Guaranteed Vs. Permanent Life Insurance
Guaranteed and permanent life insurance are not one and the same. Permanent life insurance offers coverage for the insured’s lifespan, provided the premiums are continually paid. This policy alleviates concerns about developing severe illnesses that might restrict policy renewals.
In some cases, permanent life insurance can be less costly than guaranteed life insurance, as it requires passing a health screening when initiating the policy. Guaranteed life insurance primarily serves as a backup for individuals who are ineligible for other life insurance forms. This is often suitable for those who need life insurance and can manage the premiums.
Choosing an appropriate life insurance type and coverage amount that meets your family’s needs is integral to financial planning. Consider consulting a Certified Financial Planner, who can guide you through the details.
Jeff Rose, a financial planner and blog author of Good Financial Cents, champions insurance. He provides straightforward term life insurance quotes on his website, LifeInsurancebyJeff.com (reported by SmartAsset.com).
