Protect yourself with life insurance
Life insurance protects your loved ones financially after you have passed, and it’s never too late to buy a policy. However, if you wait until you are older to start a policy, then you’ll have a higher premium. Also, premiums are based on overall risks such as lifestyle and health. So, if you use tobacco or enjoy skydiving, then your overall risk will be higher and so will your premiums. Most people think if they have a terminal illness they aren’t insurable, but that’s not true because guaranteed issue policies are designed to protect those who have terminal illnesses.
So, if you decide to purchase a personal policy or company-sponsored policy, you’ll want to be clear about your long-term goals. A company-sponsored policy terminates when you end employment and often is not transferable. Also, you’ll be asked to complete a medical exam because this helps insurers evaluate your risk for premature death. But, policies that require a medical exam tend to have lower premiums.
You’ll also want to decide if you want a term or whole life policy benefit. Term policies terminate after a certain time like 30 years, but they’re cheaper than whole life policies. However, a whole life policy protects you until death and accumulates cash value over time. So, when a whole life policy matures, there’s typically a payout.
Also, before purchasing a policy, you’ll want to review A.M. Best Stability Rankings because it provides consumers insurance company information like credit ratings and financials. Now that you have learned the basics about life insurance, click below to take the quiz to assess your knowledge.