When it comes to life insurance, the customization options available to you can seem endless. Plan types, designs, riders and the various reasons and needs for life insurance are just as abundant as the hundreds of options and customization’s available to someone buying a new car these days! Getting a policy that meets your specific needs requires knowledge of all the different types of life insurance policies. This is the very reason why it’s so important to work with someone who specializes in life insurance sales and consultations.
More importantly, you want to make sure you are working with life insurance brokers, like us, who are life insurance experts and are familiar with all the many different kinds of specialty life insurance options out there and the many ways to customize a plan. Looking for a 2 million dollar life insurance policy or an HSBC term life insurance policy? We can help!
General Types of Life Insurance
Let’s start by taking a look at the different general types of life insurance.
Permanent Life Insurance
Permanent life insurance can provide you coverage you for your entire life. Another benefit of permanent life insurance is that it can generate cash value allowing you to use the money to take loans or withdrawals on. Types of permanent life insurance are as follows:
Universal Life Insurance
Universal life insurance is a type of permanent life insurance that allows the policy owner to make flexible premium payments. Variants of universal life insurance are Variable Universal Life and Indexed Universal Life insurance.
Whole Life Insurance
Whole life is a type of permanent life insurance that does not have flexible premium payments like universal life insurance does. Whole life insurance compared to Universal life insurance generates cash value more aggressively.
Temporary Life Insurance
With temporary life insurance, you have coverage for a predetermined period of time, often referred to as a Term. Temporary life insurance is a type of policy commonly referred to as Term Life Insurance and does not generate cash value life universal or whole life. Term life insurance most commonly can be purchased in 10, 15, 20 and 30 year term periods and is your least expensive option when it comes to purchasing life insurance.
Special Policies and Policy Riders
Many people cannot find exactly what they are looking for when they look at the standard plans. In fact, this is more common than not. As with most of life there is no one size fits all policy out there.
A good example would be someone that gets rejected for all of the life insurance policies listed above because of a health condition or disability. That person can frequently get a burial insurance or no exam policy.
Another example is a person that wants to add a special circumstance that will result in more coverage. These kind of special coverages can be added to a standard policy as a rider or extra provision in the life insurance policy. At LIfe Insurance United, we are able to work with you to get the absolute best policy for your needs. Currently we specialize in policies and riders for:
- Key Person Life Insurance
- Life insurance for Parents
- Life Insurance for Moms
- AICPA Life Insurance
- FEGLI Life Insurance
- Mortgage Life Insurance
While these are the types of riders and special policies in which we specialize, our team is capable in all types of life insurance and life insurance riders.
Getting Affordable Life Insurance Coverage
When you’re looking to get life insurance coverage, it’s important that you get the most affordable life insurance plan available.
A very common reason why people do not purchase life insurance is that they think that it will be too much for their budget, but this is not the truth. There are many ways you can help secure lower insurance rates from the company.
The first thing that you should do is start a healthy diet and get regular exercise. Before the life insurance company will accept your application for coverage, they will require you to take a medical exam (unless you choose to purchase a no medical exam, and we will discuss those later in this article), and the results of the exam are going to play a huge part in the amount you pay for your life insurance.
If you want to get results from the medical exam, a diet and exercise are some of the best ways to do that. You can lower your weight, lower your cholesterol, lower your blood pressure, and drastically reduce your chances of having other health complications.
Stop all tobacco use
Next, you should cut out tobacco usage. When applying, if you have to list that you are a smoker, you can expect to pay up to double for life insurance coverage. By quitting this bad habit, you can save a good bit of money on insurance premiums.
The best way to obtain the lowest premiums is by working with an independent insurance broker. Independent brokers work with many companies and can bring all of the best insurance rates directly to you, at no cost. Don’t waste your time calling all of those companies yourself, let us do all of the work for you.
No Medical Exam Life Insurance
When you’re looking to get life insurance, there is a chance that the company will decline your application due to health issues or any pre-existing condition. Just because you’ve been declined doesn’t mean that you have to be without the life insurance protection that your family deserves.
Regardless, there are several options for life insurance protection that you can buy. The best way to get life insurance if you’ve been declined in the past is to buy a no medical exam plan.
With a no medical exam, you can get life insurance protection without having to take the medical exam, which is great for anyone in poor health, but there are several benefits and pitfalls to these policies that you should take note of when you’re shopping for life insurance.
The biggest advantage is that anyone can be approved for these plans, even if you have a pre-existing health condition like diabetes or cardiovascular problems. Everyone deserves to have life insurance coverage, your health shouldn’t prevent that.
Another big advantage to these plans is that approval for coverage is much quicker than with a traditional insurance plan. With a traditional life insurance plan, you’ll have to wait for the company to review your medical exam results, which can take several weeks.
With a no medical exam, you can be approved for life insurance in a matter of days. If you want to get life insurance as quickly as possible this will be the best option for your needs.
There are a few significant disadvantages to these plans that you should take note of, the biggest one is that a no exam policy is going to cost more than a traditional life insurance plan.
The purpose of the medical exam is to give the insurance company an idea of your risk for an insurance policy, without the medical exam, they are taking a much higher risk. If you’re looking to get the cheapest life insurance protection, then you’ll want to apply for a traditional plan.
Another disadvantage to these plans is that you’ll be restricted on the size of plan that you can buy. Most insurance companies only sell $250,000 worth of coverage through a no medical exam plan. For most families, this isn’t enough life insurance.
Not having a large enough plan could leave your family with debt and unpaid expenses. If you need more life insurance coverage than that, you will need to purchase two plans or apply for a normal policy.
How do you know if a no exam will offer enough insurance? It’s easy, just do the math.
You need to add your debts, monthly expenses, and your income all together. If all of the math scares you, our agents can do that for you as well. We want to give you a guarantee that your loved ones will have enough money to cover each bill and get through the difficult time in their lives.
There Are So Many Types Of Life Insurance Policies… What Now?
After reading about all the different kinds of life insurance available to you I’m sure it can sound pretty daunting. No worries though! As life insurance professionals we have made it our careers to understand all the different kinds of specialty life insurance out there.
No matter what your situation is, we can design a life insurance plan around your personal situation to fit your needs and budget! Just give us a call or fill out the quote request form to get more information.
We know that finding the best life insurance policy can be a long and difficult process, but it doesn’t have to be. Our agents can help connect you with the perfect life insurance plan to meet your needs. Contact one of our agents today and we would be happy to get the process started.