Looking to Buy Life Insurance?
We'll Help find the right policy for you
When it comes to buying life insurance, your age and health are two of the most important factors an insurer will consider when determining eligibility and pricing.
An individuals in their 20s or 30s will usually find better rates as insurers see less risk in younger and healthier policy holders.
However, you can find a variety of quality insurance policies at affordable prices. Everyone's needs are different. Knowing your option will help you choose a policy that fits your needs.
New Insurance Advantage is here to help guide you through the process of finding the right coverage for you. So let's get started.
Finding a Life Insurance Policy By Type
No medical exam policies are exactly what their name implies: they don’t require you to take a medical exam like traditional life insurance policies do. But, they provide the same guaranteed coverage as those that do require a medical exam. However, no medical or simplified issue policies are typically limited to lower coverage amounts. These policies are typically still fully underwritten with a complete medical questionnaire. Your background review could include the following:
- Pharmacy report, which lists all medications you’ve been prescribed over the last 5–10 years
- Motor Vehicle Department report
- Medical Insurance Bureau report (to see if you’ve applied for or have been denied life insurance in the past)
- Credit history (only a few insurance companies check this)
When it comes to life insurance, term life insurance is one of the simplest and most affordable option available. Term life insurance covers you for a “term”, or a predetermined length of time, instead of your entire life and premium prices are lower because of this. These types of policies are great options for people who have a limited budget or for those looking to have additional coverage to protect loved ones from a the financial impact of their death.
Uncomplicated and affordable, term life insurance provides a great solution for almost every person’s need
Instant issue life insurance is best suited for people in good health and between the ages 18-60. For young and healthy individuals, rates may be end up being cheaper than a fully underwritten policy in some cases. Term lengths are usually 10,15, and 20 year terms with coverage amounts ranging from $25,000 to $500,000.
Even without a medical exam, it is important to be honest about your medical history. In the event you were to die and/or the company discovers the answers provided are not accurate during the contestibility period (typically 2 years from the start of the policy), the policy can be cancelled and any claim denied. Honesty in life insurance is always the best policy.
Instant instant issue life insurance is one of the easiest policies to obtain,and can be the solution needed to obtain the coverage in the shortest time possible with no medical exam.
Final expense insurance is an insurance policy used to pay for burial expenses and funeral services when the named insured dies. Such a policy helps ease the financial burden placed on a family when a loved one dies.
As its name suggests, guaranteed. It is a policy that will provide coverage for anyone who applies for it, with few questions asked. But, there are details regarding this type of life insurance coverage that you should know about. Here are the basics: what it is, who it’s for, and whether it’s right for you.
Guaranteed issue life insurance is typically for people over the age of 50, up to senior citizens who have roughly 10 years or less to live. It is oftentimes a last resort for individuals who can’t qualify for other types of life insurance policies because of their health issues and/or don’t have the option to purchase life insurance through their employer.
Universal life insurance is a policy that is similar to whole life in that it mixes a savings vehicle along with lifelong (hence “permanent”) coverage. If the premiums are paid as required, the policy will not expire and death benefits will be paid out to the beneficiary. Typically universal life provides more flexibility in premiums and a “cash value” that mimics a whole life policy on the surface. Universal life policies were created to provide more flexibility to the customer’s need that other permanent policies do not provide for. The savings, premiums, and death benefit can be changed based on the overall need of the customer as the policyholder’s situation changes.
The cash value inside an universal life insurance policy can be tied to a money market account, a major stock index, or be invested into equity funds and bond funds depending on the type of universal life product you purchase. Once a policy is purchased, the company creates a minimum interest crediting rate per the amount stated in the contract. If the portfolio earns more than expected, the additional amount is credited to your account up to the cap rate. It is for this reason why universal life insurance policies can accumulate more than whole life policies
One major advantage to the cash account inside these types of policies is that the cash value can be used to pay premiums on the policy after a certain point if there is enough fund in the account to pay for the continual cost of insurance unlike whole life which automatically takes out loans against the cash value in the event of a non-payment of premium. Premiums inside a universal life policy are split between two different areas: the savings element and the cost of insurance. In order for the coverage to remain in force, the cost of insurance must be paid through premium payment, or (if there is enough fund built up inside the cash account) a reduction of the cash value. As long as the cost of insurance is paid, the contracted coverage is guaranteed to stay in effect.
The payment due to the beneficiary an accidental death insurance policy, which is often a clause, coneted. The accidental death is usually an amount paid in addition to the standard benefit payable if the insured died of natural causes.
Depending on the type of the policy, the accidental death benefit may extend up to a year after the initial accident occurred, so long as the accident led to the insured's death.