Life Insurance

AZ Health Insurance Brokers Life Insurance

Life insurance can provide your loved ones with financial protection if the policyholder passes away. Life insurance provides money to the policyholder’s beneficiary or beneficiaries, so a family can avoid financial hardship and cover expenses when a policyholder dies.

A life insurance policy can provide your family with the peace of mind that no matter what happens, you’re financially protected. Here’s why you, your spouse and/or your partner might consider getting a life insurance policy.

What Is Life Insurance?

Life insurance is an insurance policy contract that pays money to the policyholder’s beneficiary or beneficiaries when the policyholder dies, as long as the policyholder has met their agreed-upon terms in the policy.

To get a life insurance policy, first the policyholder should choose which type of policy

they’re interested in. We outline some of the many different forms of life insurance that are

available below.

Then, depending on the policy type, the life insurance applicant may be required to get a medical examination. For some plans, the younger you are and better health you’re in, the lower your life insurance costs can be. You could lock in a lower rate by signing up for life insurance earlier in life, which is why it’s a good idea to consider life insurance sooner rather than later.

For some life insurance plans, there’s no medical exam required. Whatever your age or

health condition, there are affordable life insurance options available to you.

Reasons to Get a Life Insurance Policy

A life insurance policy provides benefits to the policyholder’s beneficiary(ies) so that the beneficiary can continue to live a similar lifestyle compared to when the policyholder was alive.

For example, take a family with young children that relies on the income of a sole breadwinner. If the breadwinner were to pass away, life insurance would pay the beneficiary (such as the spouse, in this case) death benefits that would help the family continue to pay their bills and live comfortably, even when that income stream is gone.

Life insurance policies can also benefit family members who aren’t the primary breadwinner. For example, in the above situation, if the stay-at-home spouse passes away, the surviving spouse may need to pay for childcare in order to keep working. Life insurance

coverage can help.

You may be wondering: do I need life insurance if I don’t plan to have kids or get married? Keep in mind that life situations can change at any time. Some people may become caretakers for family members, such as elderly parents, in the future. Even if you don’t think you need life insurance now, you can lock in the lowest rate possible today and assign relevant beneficiaries as your life progresses.

Life insurance can also help a beneficiary/family pay for end of life expenses, like a funeral, burial and outstanding debt payments, like student loans or credit card debt.

Life insurance provides financial protection and peace of mind. It alleviates stress that a family may have difficulty paying for outstanding expenses once someone has passed away.

Do I Need a Life Insurance Policy Outside of Work?

Some employers offer group life insurance when you work for them. These plans provide a way to get life insurance coverage, but there are potential disadvantages when you have this as your only life insurance plan.

Typically, if you lose or quit your job, you’ll also lose your life insurance coverage through your employer. That means, you’ll have to go through the application process to get life insurance again.

Since your age and health can affect your life insurance costs, life insurance premiums maybe more expensive later than the cost you can lock in when you’re younger. Group life insurance through an employer can be a great supplemental benefit, but getting your own individual life insurance plan protects you in case your work situation changes in the future.

Another consideration with employer life insurance is that it may not provide you with the exact coverage you need. It may also be more expensive than an individual life insurance policy.

When you get life insurance through a life insurance broker like us, we’ll tailor your plan to fit your exact needs. That can help you save money and ensure you’re fully protected.

Types of Life Insurance Policies Available

There’s a variety of life insurance plans available, ranging from fixed-term life insurance, to permanent life insurance, to life insurance with no medical exam required. Consider the following options.

Term Life Insurance

Term life insurance lasts a set number of years and is typically less expensive than a permanent life insurance plan that lasts your whole life. You might choose term life insurance when you know you have certain expenses over a specific amount of time. For example, you might choose a 20-year or 30-year term if you have kids, so that their expenses will be covered until they become independent adults.

Term life insurance plans may provide additional customization options, such as the ability to convert a term life insurance plan into permanent insurance, or to choose a plan with varying coverage over the life of the term. Talk with a life insurance provider to learn about your options.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance. With a whole life insurance plan, you’ll have coverage your entire life, as long as you pay your premiums and hold your policy.

With whole life insurance, your premium payments help you accumulate cash value. You may be able to access the cash value from your whole life insurance plan while you’re alive, to pay for expenses you have now or even to cover your life insurance policy premiums.

Universal Life Insurance

Universal life insurance is another form of permanent life insurance. Like whole life insurance, it accumulates cash value. With universal life insurance, that cash value also earns interest.

Universal life insurance offers policyholders some other options, too, such as the ability to adjust premium amounts over time.

Variable Life Insurance

Variable life insurance is permanent life insurance with a cash value component, as well. Like universal life insurance, it has flexible premiums.

With variable life insurance, policyholders have the option to invest the cash value from the policy in a different account.

Burial/Final Expense Life Insurance

Burial life insurance and final expense life insurance are two terms that refer to the same type of life insurance policy. These policies are a form of whole life insurance, where the death benefit is smaller, around up to $35,000.

This type of life insurance is typically intended to help families cover end of life expenses, like a funeral, burial and/or outstanding debt expenses. The beneficiary can use the benefit for anything, which means the payout can go to a cost other than a funeral, if desired.

Survivorship/Joint Life Insurance

Survivorship life insurance, also known as joint life insurance, is a life insurance policy with two people on a single policy. The payout occurs after both policyholders have passed away. Sometimes couples choose this option to leave a payout for dependent children, heirs or another beneficiary. The policyholders on a joint life insurance policy don’t have to be married to obtain this policy. This type of life insurance is typically a permanent life insurance policy.

Mortgage Payoff Life Insurance

For people who have an outstanding home loan, mortgage payoff life insurance provides coverage towards a mortgage if the policyholder passes away. Generally, these policies have a set term that’s aligned with the term of your mortgage. The coverage may decrease over time, to align with the outstanding mortgage balance.

Apply for a Free Life Insurance Quote Now

It’s easy to qualify for a life insurance policy. No matter what your age is or what condition your health is in, you have life insurance options. You can apply for a free life insurance quote in just a few minutes, then enjoy the comfort knowing that you’ve taken steps to protect your loved ones. Contact us for life insurance information today.