Buying life insurance and helping to protect your family in the event of the unexpected is one of the most important purchases you can make.
(BPT) - Getting insurance can be famously complex and time-consuming. Whether it's life, health, automobile or home, it takes time to understand what coverage you need and how to get it. As a result, it's easy to put off items that don't feel truly urgent until it's too late.
Buying life insurance and helping to protect your family in the event of the unexpected is one of the most important purchases you can make. Doing this right requires a clear understanding of how much coverage you need, what a policy actually covers and how much you can reasonably afford. That's a tall order for anyone.
But life insurance doesn't need to be complicated. Understanding the basics - and taking advantage of the tools out there that can help you find the right policy in just minutes - are all you need to help protect your family's future.
So, what do you need to know about life insurance to make an informed decision? Let's answer your questions and clear up some myths first - and then explain your options.
Isn't life insurance for older people? I'm young and healthy. I don't need it.
The answer is a resounding no, and for obvious reasons: Even the young and healthy are at risk for the unexpected, from accidents to sudden illness. Life insurance can help you and your loved ones - whether that's your children, parents or siblings - prepare for the unknown and make the right financial decisions. Laying the groundwork for that protection now, when you're healthy and young, is an important step in building a sound financial future.
The good news is that there are different types of insurance policies that can best serve you and your family's needs. Whole life insurance, which is what we often think of when we're considering a life insurance policy, offers coverage you can't outlive, with the cash value of the policy growing over time.
If you have big responsibilities right now and are still healthy, term life insurance, which can replace income and cover expenses in the unfortunate event of an early death, might be the better option. You can choose the timespan of the policy based on your family's needs (for example, if you're just starting your family, you may want to opt for a 20- to 30-year policy to make sure your children are covered until they're adults). In an ideal world, your family will never need the policy, but it's a strong safety net that can help you feel more secure, regardless of what the future holds.
But life insurance is expensive!
Life insurance costs can be high, yes - but that's not a given. Understanding the amount and type of coverage you need keeps costs down. Being underinsured can be distressing in an emergency; being over-insured can eat away at your financial planning. Opting for a term life policy can help you solve these challenges. Their premiums are typically lower, and allow you to only cover the most likely scenarios for your age demographic.
This helps, but I'm still not sure which policy I need. And I'm too busy to keep searching.
This is where products like TruStage(R) come into play. You don't need to spend hours assessing your risk and sorting through the clutter yourself; you have access to an online application as well as licensed agents that can help take the guesswork out of the process.
TruStage offers a simplified-issue term life insurance product that helps demystify the process for you through an online application process that takes about 10 minutes to complete.* After answering a few health questions, their automated process delivers a decision in minutes, offering coverage amounts of $5,000 to $300,000 to provide protection for home mortgages, children's education, income replacement and final expenses. It also provides coverage options based on your budget, rather than making you estimate the amount of coverage you need.
In other words, in the time it takes you make a box of mac 'n' cheese, you could help protect your family.