Talking about life insurance might not be something most people enjoy, but it’s important to think about. Interestingly, a recent study found that almost a third of U.S. families don’t have life insurance. Even among those who do, many don’t have enough coverage. Are you one of them? Don’t let yourself become just another statistic.
While thinking about our own mortality isn’t easy, it’s crucial for responsible individuals to consider the financial well-being of their loved ones if something tragic were to happen.
Most Common Type of Insurance
Term life insurance is the most common type of life insurance. Many companies advertise this online. For example, if you’re in Chicago, you can look up life insurance quotes in Illinois to find local providers. While guaranteed life insurance isn’t as common, it’s designed for those who can’t pass the health checks required for regular term life insurance.
Guaranteed life insurance is available to anyone who isn’t currently in a hospital or long-term care facility. The cost of this insurance is based on your age and gender, not your health history. Due to the higher risks involved, guaranteed life insurance is more expensive than regular term life insurance. However, anyone can apply and get approved.
The application process is much quicker than for regular insurance because there are no background checks for guaranteed life insurance. You can get insurance in minutes instead of waiting the usual 4-6 weeks. The downside is that it costs more because of the shorter processing time.
Guaranteed Vs. Permanent Life Insurance
Guaranteed life insurance and permanent life insurance are different. Permanent life insurance covers you for your entire life as long as you keep paying the premiums. This type of policy removes the worry of developing severe illnesses that could make it hard to renew your policy.
Sometimes, permanent life insurance can be cheaper than guaranteed life insurance because you need to pass a health screening when you start the policy. Guaranteed life insurance is more of a fallback option for people who can’t get other types of life insurance. It’s suitable for those who need coverage and can afford the premiums.
Choosing the right type and amount of life insurance to meet your family’s needs is a key part of financial planning. It might be helpful to consult a Certified Financial Planner who can guide you through the options.