Not all online life insurance is the same, so it’s important to choose the one that’s right for you. With so many options on the market, you could easily find yourself overwhelmed and confused by all of your options. The good news is that there are plenty of steps you can take to make sure you end up with the right policy at the right price. In this article, we’ll walk you through seven simple steps to help you choose the right online life insurance policy.
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Step 1: Figure out your future needs
It’s important to consider both your current and future financial needs. If you’re single and don’t have kids, you probably won’t need much coverage. But if you want life insurance for children or an elderly parent, that could mean a larger policy. Likewise, if your children are young and haven’t started college yet, your policy will likely be smaller than it will be when they hit their late teens when tuition bills might skyrocket.
Step 2: Determine what you can afford right now
It’s important to remember that life insurance is designed to replace your income—not your current savings. So when choosing online life insurance, it’s important to think about what you can afford on a monthly basis and then find a policy with a rate that works for you. You don’t have to be able to cover your full premium at once—most policies offer flexible payment options or ways for you and/or your employer (if you have one) to save money for coverage.
Step 3: See if you qualify for government assistance
If you’re struggling with your health insurance costs and don’t want to take out a loan, check if you qualify for government assistance. Depending on where you live, there are a number of government programs that can help lower your monthly payments and remove them entirely.
Step 4: Compare term vs. whole life
The most obvious distinction between whole life and term life insurance is that, while term offers you coverage for a set period of time, whole life offers lifelong coverage. Term tends to be cheaper because it only covers you during your specific time period. Term also provides flexibility: if you move or change jobs, or want to discontinue your policy early, there are no penalties like there would be with whole life.
Step 5: Research multiple companies before making a decision
When you’re looking for life insurance, it’s important to take some time and do your research. Though you may be interested in a specific company or product, you want to ensure that it is best suited for your needs. The easiest way to do that is by checking out multiple sources; compare quotes from multiple companies and ask around about recommendations.
Step 6: Protect your loved ones after your death
No matter what kind of online life insurance you purchase, it’s just that: insurance. You won’t see a payout until your death or if you become disabled, and even then it may be tied up in legal proceedings for a while before family members are able to access funds. There is an easy way to ensure your loved ones have immediate access to money after your death: open a separate savings account for them, directly deposited from your paycheck into their bank account every month.
Step 7: Purchase two different policies
Term and whole life insurance are both types of policies that can provide for your family if you pass away. Term provides financial protection in case you die within a certain time period (usually 10-30 years) while whole life offers financial assistance in the form of a death benefit, as well as some life insurance coverage, and builds cash value over time. While term plans are generally cheaper than whole life policies, they require that you re-purchase them periodically, which could leave your family unprotected if something were to happen.
After carefully considering your family’s needs, it’s time to look at your insurance options. Fortunately, there are a wide variety of policies available for purchase. However, some will fit better than others. For example, term life insurance is ideal for those who only require coverage for a specific period of time.
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