When it comes to insurance coverage, most people either have or have heard of two main types: health insurance and auto insurance. That’s because you must have auto insurance if you own a registered vehicle, and you must have health insurance if you think you’ll ever get sick or need medical treatment. That being said, while most of us are prepared to pay premiums for these two types of insurance, life insurers get a bad rap, and for no good reason.
The problem with life insurance is that nobody likes to think about their mortality, especially when they’re young and pretty healthy. After all, if you’re planning a road trip with your spouse for your first or second anniversary, you probably aren’t imagining that anything bad may transpire on the way. Unfortunately, a road trip is only one of many occasions that raise the need for life insurance. Read on to learn why life insurers may-be just the people you should speak to so that you can have peace of mind before you head out on a road trip or any other adventure.
What is life insurance, anyway?
Life insurance is similar to other forms of insurance in that it offers security in the case of a nasty surprise. Auto insurance will pay for medical treatment and a mechanic if you’re in a car crash, and health insurance or travel health insurance pays for medical treatment, like Hyperbaric Oxygen Therapy (HBOT), that you need if you find yourself suffering from decompression sickness after scuba diving in the Maldives.
If a medical exam should come back with a nasty surprise and your life expectancy is shortened, or if you should pass away in an accident, your life insurance policy will be there to provide for the people you’ve designated as beneficiaries by way of a death benefit. Of course, no one wants to imagine this happening, but if you have a spouse or kids, you should have a life insurance policy, too. It’s just the financially responsible thing to do if you want to guarantee your loved ones have financial stability no matter what happens.
What types of life insurance policies are there?
We’re glad you asked! There are many different types of life insurance policies, but they can be lumped into two main categories. You can lump the term life insurance as a life insurance policy covering you throughout the policy term. That is to say, as long as you’re paying premiums to the life insurance company, your beneficiaries will receive a death benefit upon your passing.
These days, with the unpleasant surprises brought on by COVID-19, term life insurance may be the way to go. The other main category is permanent life insurance (or whole life insurance), which is kind of what it sounds like—a permanent life insurance policy that has you covered for your whole life. The premiums you’ll pay to the life insurance company are higher with this option, usually, but it may make sense if you’re pretty healthy and young.
Can I find life insurance quotes on the web?
Absolutely! Life insurance quotes online are easy to access and understand, and you can even check out tools that compare and contrast the policies. That means that you’ll understand how much life insurance your premiums are paying for and whether a prior medical condition may preclude certain coverages. After all, if you’re signing on to something for your whole life, you want to know that it’s the right life insurance policy.
While this may seem overwhelming, buying a life insurance policy doesn’t have to take a lot of time. The best way to become a policyholder is to take stock of your finances and head online to look at various life insurance quotes. That way, you can find the best rate for the amount of coverage you need.