Term coverage offers temporary financial protection to your loved ones during your working years, when insurance costs are typically lower. The death benefit of the policy pays money directly to beneficiaries to pay funeral costs, ongoing financial obligations such as future mortgage payments, education and daily living expenses.
A life insurance contract is a contract between you, the insured company. In return for regular payments (called premiums), the insurer pays money when you die. This payment is made to the beneficiaries you have chosen, usually your children, spouse, and other family members. This can act as a safety net for anyone who is financially dependent on you. Beneficiaries can use the money for repayments, to replace your income, and to fund future expenses, such as college tuition.
There are many options for life insurance, but the most popular are term and full. Term life insurance is the most practical because it is simple and affordable. It also lasts for as long you need it. However, the best policy for you will depend upon your individual circumstances. These include your financial obligations, income and lifestyle.
A simplified issue policy will require you to complete a questionnaire regarding your health, family history, and medical history. Access to your past medical records is required. There is no need to have a medical exam. The only thing you will need to do is answer your questionnaire and access to your medical records.
The best option for young families is term life because it covers only a short period and is usually less expensive than permanent coverage. It is possible to buy a policy that will cover the years your family is dependent on you financially. You can also lower your coverage once your children become financially independent.
A life insurance policy is a contract between you and an insurance company. In exchange for regular payments, called premiums, the insurer pays out money after you die. This payment goes to the people you choose as beneficiaries - usually children, a spouse or other family members. It can be an important safety net if anyone depends on you financially. Beneficiaries can use the money to repay debts, replace your income, or provide funds for future expenses like college tuition.
Two types of standard life insurance policies do not require a medical examination: the guaranteed issue and simplified issue. Understanding their differences and the benefits they provide can help determine which no-medical exam policy is best suited for you.
Online life insurance can sometimes be purchased without the need for a medical exam. Term coverage does not build cash value. Term life is adequate for most families.
The following rates are for a policy of 20 years for a 35year-old male who is not a smoker and has a preferred health rating.
Honesty is key, no matter what questions are asked. If they discover that you have lied or misrepresented any information, insurance companies can cancel your policy. Even if there is no health exam, insurance companies still have many ways to verify the information you give. Insurance companies check your responses against Prescription databases and The Department of Motor Vehicles. They also examine statements from physicians.
How much term life insurance coverage do you need? It depends on your financial situation, income, debts, family needs, and future financial obligations. A good rule of thumb is to have coverage that's 5-10 times your annual income.