Purchasing life insurance

Purchasing life insurance is a big step, so make sure you’re ready. You can buy life insurance at any age, but the older you are also means increased premiums. Premiums are also based on factors such as health and lifestyle. For example, if you smoke cigars, then you’re considered high risk, and your premiums will be higher. Even if you have a terminal illness like cancer, you can still get life insurance with a guaranteed issue policy because these policies protect people with terminal illnesses.
The next step is deciding if you want to buy a personal life insurance policy or participate in an employer-sponsored plan. You can have both types, but employer-sponsored plans terminate when you leave the job and typically aren’t transferable. Next, you’ll want to understand the difference between a term life policy and a whole life policy. Term life policies are cheaper than whole life policies, but they end after a specified period like 20 years. But, whole life policies protect you until you die, and they build cash value over time that can be paid out to the owner.
Regardless of which policy type you choose, you’ll be asked to complete a medical exam. The insurance company uses information from the medical exam to evaluate your risk for death. Also, policies that require medical exams have lower premiums. Before you commit to a company, you’ll want to check A.M. Best Stability Rankings because it provides vital information like financial stability, which will help protect your investment. Now that you’ve reviewed the basics of life insurance, click below to take the quiz to assess your understanding.