This is a big question because many people do not understand the differences between whole vs. term life insurance. Ready to learn everything you need to know about this topic in order to make a decision that could affect your family for decades? Keep reading to discover all the answers you need. 

Understanding Life Insurance: Term vs. Whole 

If you are considering life insurance coverage, term and whole are two of the most popular options. Each one has strengths and benefits, and it is important to know what distinguishes these policies. 

Term policies only cover you for the specific time you sign up and do not gather any cash value (more on this later). Most carriers allow you to get policies for up to 30 years, so while this coverage is limited, it is possible to lock in a good rate for decades. 

By contrast, whole life policies gather cash value over time and are designed to last until you die. That may sound great, but factors such as a higher cost mean that such a policy will not work for every policyholder or their family. 

The Crux of Term Life Insurance 

When the future of your family is on the line, it is important to understand the most important details of any policies that you purchase. Fortunately, it is easy to understand term coverage because it has two chief benefits that may be uniquely suited to your needs. 

The first benefit is that compared to whole life policies, term policies are typically much more affordable. That may not seem like a major consideration if your budget is not a concern, but as noted before, these policies can last for as long as three decades. A more expensive policy can add up over time and jeopardize the primary goal of most policyholders: leaving behind as much money as possible for their spouse and children (to maximize this, make sure you understand taxes on life insurance distributions). 

The other major upside is you can time different policies to different milestones. For example, you may want a policy to last until your mortgage is paid off, ensuring that payment for the house will be taken care of in case you unexpectedly pass away. You can also time policies to last until your children have graduated from college, ensuring that their higher education will be fully funded if you should pass away before they complete their four-year degree. 

The Intricacies of Whole Life Insurance 

Like term policies, whole policies are relatively easy to understand because they, too, have two chief benefits. The first and most obvious of these benefits is that your coverage lasts until you pass away. This alone can provide serious peace of mind, knowing that your policy will not expire right before it is needed. 

The other chief benefit is that whole coverage accrues a cash value over time. After enough years have gone by, you will be able to withdraw funds against it. These funds are usually tax-free, and being able to withdraw them at any time can help you fund momentary financial needs. In the longer run, you can potentially use the cash value of your policy to help make estate planning that much easier. 

Key Differences Between Term and Whole Life Insurance 

Each policy has its own set of pros and cons. Examining these may make it easier for you to decide which policy works best for your situation. 

Pros of Whole Life Coverage 

Depending on the carrier, you may be able to lock in a set rate that never changes. This can help alleviate the fear that your premiums will increase as your health worsens. You can also borrow money from the cash value that has accrued. These funds are usually easier to secure than traditional loans, and you will likely get better terms using this method than going to the bank and requesting a loan. 

Cons of Whole Life Coverage 

Compared to term policies, whole policies are typically much more expensive. Additionally, you must be wary of letting your coverage lapse because this can result in surrender charges and other unexpected fees, jeopardizing the benefit intended for your family. Speaking of benefits, if there are still any outstanding loans on your account when you pass away, it will reduce how much your family gets paid. 

Pros of Term Life Coverage 

By far, the biggest benefit of term insurance is that it is cheaper than a whole policy. Additionally, this coverage is much more straightforward, meaning it will likely be easier for you to understand. It is the right coverage for you if you just want something available to help your family while there are still children and a mortgage to consider. 

Cons of Term Life Coverage 

One of the big drawbacks of these policies is they do not accrue cash value over time, so such a policy will not be worth more 30 years from now than it is today. Additionally, these policies are limited to a specific length of time, which may not be ideal for those looking for lifetime coverage. When that time ends, you do not receive any of the cash back you have paid in over the years. 

Who Should Consider Which? 

As you can see, each of these forms of insurance has its own strengths and weaknesses. Neither one is inherently better or worse than the other. If this is your first time purchasing a policy, you should also be prepared for your life insurance health screening in case it is a requirement. 

Ultimately, by understanding more about who each of these policies is designed to protect, you can better decide which policy you want to purchase. 

Is Term Life Insurance the One for You? 

This type of coverage is primarily useful for those who need coverage for only a short period of time. You can also “stack” policies by getting different coverage amounts for different years. For example, you can take out three different policies of differing amounts, each one expiring after major milestones (such as children completing college, you and your spouse paying off the mortgage, and you retiring). Done right, this can maximize your protection while minimizing your investment. 

Making Sense of the Ideal Whole Life Insurance Candidates 

Whole policies are most useful for those who want a single plan offering a certain level of protection for as long as they live. It can also be very beneficial to those who wish to use the accrued cash value to help with retirement planning. That being said, it is important to maximize contributions to your 401(k) and IRA before relying on insurance as a retirement investment. 

Alternatives to Term and Whole Life Insurance 

Term and whole life insurance are not your only options when you need protection for your family. For example, if you are primarily concerned about your spouse being able to pay off the house, you can invest in mortgage insurance. If you are worried about dying or getting disabled in an accident (as opposed to simply dying of natural causes), you may want to consider getting accidental death and dismemberment insurance. 

Otherwise, if your primary goal is to help fund your retirement, you can make investments, max out your 401(k) and IRA, and consider investing in annuities. Keep in mind this does not have to be an either/or situation. It is entirely possible to combine all these products as part of your retirement planning strategy. 

Get a Quote on the Type of Life Insurance That Fits You Best 

Now you know the most important details about these two types of insurance. But do you know where to get the best policy, regardless if you choose term life insurance or whole? 

At InsureOne, we know that no two families are alike, and we are ready to create a custom plan that best suits your needs. To give your family the security and protection they deserve, you can get a quote online in minutes. If you have questions or want a more personal touch from start to finish, you can also contact us by phone at 800-836-2240. Speaking of personal touches, you are always welcome to visit an InsureOne office near you today. 

It’s easy to get confused by all the kinds of coverage that is available. What is a whole life policy, and how is it different from term life policies? Most importantly, how can you tell which is best for you? 

You don’t have to try and figure it out by yourself – especially with the convenience of us guiding you along the way. Keep reading to discover the most important differences between these two kinds of policies. 

What Is Term Insurance? 

Term policies refer to coverage that lasts for a specified length of time. For example, someone might take out such a plan for 10, 20, or 30 years. As long as this plan is active, your beneficiaries can receive the death benefit when you pass. 

With this insurance, you can get customized coverage for your particular needs. For example, some people want the longest length of time they can obtain. Others might want to correspond to a specific window (for example, coverage that lasts until their children have all graduated college). 

The Pros of Term  

The chief benefit is that you can effectively “lock in” the best possible rate for up to 30 years. This is one reason many people take out a policy once they turn 40 and are still in relatively good health. They won’t have to worry about paying more if their health worsens during that time. 

On top of that (and the simple fact that this is the most straightforward kind of policy to understand), this coverage generally has a lower monthly premium than a whole life policy, which means you can have a policy with a large payout and not have to worry about breaking the bank to pay for it from month to month. 

The Cons of Term  

There are two main cons regarding term coverage. The first is that you are only covered during the specified length of time. Someone could get very sick right after the end of their contracted term, and, should they die, their beneficiaries would get nothing because the coverage period is over. 

Another drawback is that, unlike whole life insurance, you can’t use term policies to build wealth or make tax planning any easier. But it’s not much of a con considering how difficult it can be to make that work even with whole life policies (more on this soon). 

What Is Whole Insurance? 

As the name implies, these policies cover someone for their entire life (or until a specified cut-off, such as age 100). However, this coverage is typically more expensive. As a bonus, though, this policy has a cash value that can grow over the years, allowing you to borrow against it or even cash out. 

While this policy is the most popular, that doesn’t mean it’s the right choice for everyone. Knowing this coverage’s unique pros and cons is essential before you take out a policy. 

The Pros of Whole Life  

The primary benefit of this type of policy is that you never have to worry about your coverage expiring. While it is more expensive than term policies, you won’t have to negotiate a new (and much more costly) policy. 

Additionally, borrowing money against the policy’s cash value is convenient, and these loans are usually tax-free, making them one of the best ways to get additional cash when needed. Your loan may also build up dividends. 

The Cons of Whole Life  

The primary drawback of whole life coverage is its more expensive monthly premium. While it’s possible to cancel your policy if you need to, doing this too early can result in you having to pay surrender charges. 

Also, while the ability to take out loans against the cash value is useful, you need to be wary of taking out too many. If you should pass away, these loans will reduce the amount of your death payout. Finally, while whole life policies may be used for wealth-building and tax-planning strategies, this process is complex and should only be done by a professional or someone with experience in finances. 

What Are the Primary Differences? 

One of the main differences is that while whole policies can cover someone for their entire existence, term coverage typically maxes out at 30 years. These policies cost less monthly but do not build a cash value. Whole policies build cash value which you can borrow against. Finally, whole policies may build up dividends and term policies will not. 

How can you tell which coverage is best for you? Generally, one is good for folks who only need it for a certain time period (like, the next 10 years) or want up to 30 years of coverage but cannot afford whole life policies. Conversely, the other is better for folks who can afford the higher premiums and don’t want to worry about expiring coverage. These policies are also better for those who might wish to borrow against the policy. 

Get the Best Life Insurance Today! 

Now you know the key differences in whole vs. term insurance. We support you choosing the kind that’s best for you, and either way will always be here to offer superior coverage at competitive prices. 

At InsureOne, we specialize in helping everyone get the excellent insurance coverage they need. When you’re ready to start protecting the future of your loved ones, get a quote online, call us at 800-836-2240, or visit one of our nearby offices at your earliest convenience! 

Fortunately, all it takes is a little planning today to give yourself a more comfortable tomorrow. What is this special coverage all about? Who needs it, when should you get it, and how much will it cost? Keep reading to discover our complete guide! 

What Is Long-Term Care Insurance? 

Long-term care insurance helps to cover the cost of an assisted living facility or nursing home, and it can also cover the costs of hiring caretakers to visit your home. This kind of coverage is often referred to as “nursing home insurance.” 

Many people enjoy this coverage because it also helps to cover the costs of in-home care, home management, and even the costs of certain home modifications related to your health, most of which are not covered by Medicare. Despite this policy being associated primarily with nursing homes, buying such a policy can keep you in your own home rather than a nursing home for that much longer. 

How Do I Know If I Need Long-Term Care Insurance? 

It’s worth looking into longer-term coverage once you turn 65. At that point, taking out a policy may be the best way to both safeguard your quality of life and protect your finances (which is especially important if you are hoping to leave money behind to family members in your will). 

Many people retire around the age of 65 if they can, but these people may not realize they will need the benefits of long-term insurance. About 70% of 65-year-olds will need this coverage, but only about 20% of them will get it. 

It’s always possible to pay for a nursing home out of pocket, but most people don’t realize these homes may cost $9,000 or more per month, and that’s on the low end. By getting long-term coverage now, you won’t have to worry about those costs later. 

When Is the Best Time To Get This Insurance? 

As noted before, the safe time to begin shopping for this coverage is once you turn 65. You can afford to take your time shopping around for the best provider, but it’s vitally important to have some coverage in place by the time you turn 70. 

The overwhelming majority of long-term claims come from people over 70 years old. Without this coverage, many could not afford to spend even a month in a nursing home out of pocket. But when you have the coverage in place, you won’t have to worry about a nursing home breaking the bank. 

What Is the Long-Term Care Insurance Age Limit? 

In most cases, you cannot get long-term care insurance or even life insurance if you are 85 or older. And some carriers will not sell this policy to those who are 80 or older. 

This is another reason that it’s worth planning on getting this coverage sooner rather than later. With a bit of planning, you can find the “sweet spot” where you aren’t paying for coverage you don’t need for much time (if at all), but you have it in place to cover the huge costs of entering a nursing home or assisted living facility. 

Breaking Down Long-Term Care Insurance Cost By Age 

It’s difficult to estimate exactly how much anyone will pay for their long-term coverage at a specific age. That’s because the premium they pay depends on several factors ranging from marital status to overall health (just as the cost of your auto insurance may depend on everything from your driving record to the condition of your car). 

As a general rule, though, the annual premium for this coverage gets more expensive over time. For example, a single male with a $165,000 policy will pay an average of about $950 per year when he is 55 years old. But that same single male paying for that same policy will pay $1,700 per year by the time he is 65. 

While it may be discouraging to see the costs go up with age, keep in mind you are still far better off paying these costs than having to pay for a nursing home out of pocket! 

Understanding Medicaid vs. Long-Term Care Insurance 

Long-term care insurance provides for your nursing home or assisted living, but you might be able to do something similar with Medicaid. So how is Medicaid different from long-term care insurance? 

Medicaid can do some of what long-term care does, and it may be far cheaper because it is a state program rather than private coverage. At the same time, Medicaid places limits on what it will cover and how long it will be covered, and many places don’t accept Medicaid. 

If you have Medicaid, we encourage you to explore how it can help with your long-term care needs. But we’re confident that after you shop around for the best carrier, you’ll soon discover that long-term coverage is a more versatile solution that simply offers more options to you during perhaps the most vulnerable period of your life. 

Get the Best Long-Term Care Insurance Today! 

Now you know all about the benefits of long-term care insurance. But do you know who can provide the coverage you need at the cost you deserve? 

Here at InsureOne, we specialize in helping people just like you when they most need assistance. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our nearby offices at your earliest convenience! 

College students are a very different demographic, but they also benefit from a good life insurance policy. Keep reading to discover just a few of the reasons why this policy can be so beneficial.

1. Student Loan Debt

One of the primary motivations of getting life insurance is to pay off any remaining debts after death. And for college students, the largest potential debt they are likely to have is student loan debt.

Depending on the student loan type, their death may not automatically discharge the debt. And that means debt (potentially quite a bit of debt) ends up getting passed to the parents instead.

However, a student can take out a very affordable life insurance policy to prevent this from happening. The student needs to make sure the policy’s death benefit meets or exceeds how much they owe. Additionally, parents can proactively take out a policy on their own children as a way of protecting themselves from this massive debt. An affordable option is term life insurance.

Student Loans: Read the Fine Print

Earlier, we mentioned that the type of loan a student has determines whether or not the debt discharges upon death. Knowing which loans discharge upon death and which do not can help students and parents make life insurance decisions while also affecting the financial aid they take out.

Let’s start with the good news: federal loans (including Stafford loans) discharge their debt upon the borrower’s death. So if a student only has these types of loans, they will not pass on any debt upon their death. The debt is also discharged for Parent Plus loans, but the government may treat the canceled debt as income for the parents and then tax it accordingly.

Now here’s the bad news: by definition, nonfederal and private loans are not subject to any kind of governmental regulation. That means these institutions can determine their own rules for whether debt is discharged upon death or not. Parents are most likely to be on the hook for this debt if they cosigned one of these loans and the student later died.

Because this debt can be sizeable, more students are looking into life insurance as a way of protecting others from their debts. After all, the average college student graduates with nearly $30,000 in debt!

2. Automobile Loans

While student loans are the primary debt that a student can pass on, they aren’t the only kind of debt. And aside from that financial aid, one of the most significant kinds of debt a student can pass on is an automobile loan.

Due to their young age, many traditional college students get their parents to cosign on a car loan. And then, if that student should die, the cosigner is responsible for the remaining debt.

In that case, the cosigner may be stuck with many years of paying off a car they didn’t need in the first place. But if the student gets a good life insurance policy, they can rest assured nobody will be stuck paying for their wheels after death! We mostly recommend term life insurance as protection in this case because whole life insurance is such a long commitment.

In addition to life insurance, it is important that the car be protected with a good auto insurance plan as well.

3. Cosigned Mortgages

While this is relatively rare, some parents cosign on a home with their children when those children go to college. Usually, they are motivated by the fact that a modest mortgage payment will be more affordable than the rent in the area (and definitely more affordable than the dorms). And after the children graduate, the homeowners can always rent the home out, especially for football games.

However, all it takes is the death of the student to leave the cosigner with an expensive mortgage and no help making monthly payments. Sure, the cosigner can always sell the home, but that may take many months (if not longer). And trying to give the home back to the bank could end up wrecking the cosigner’s credit.

Fortunately, a life insurance policy can make sure the survivor is financially covered and can afford to sell the home on their own terms without any major pressure. And while researching life insurance for college students, parents should consider long-term care insurance for themselves.

4. Credit Card Debt

Many college students are using credit cards for the very first time. And because their credit is so young, a large percentage of these students have their parents as cosigners on this card.

Once again, cosigners will be left holding the debt if the other party passes away. And if the student has been putting college expenses on the card (ranging from gasoline to textbooks), it can drive the debt quite high.

But with a life insurance policy in place, students won’t have to worry about financially inconveniencing their parents or anyone else.

5. Expect the Unexpected

Taking out a life insurance policy for a college student may feel pretty weird at first. After all, the average college student is young and healthy, not exactly the kind of person who normally needs life insurance coverage.

However, life insurance isn’t here to protect people against only the threats they are expecting. It is mostly here to protect against the other threats that nobody ever expects.

Tragically, it is very easy for a college student to die on the way to campus or while driving back home. Some students are even fatally struck by cars as they walk to and from college campuses. And some young people in apparently perfect health may be suffering from illnesses that aren’t diagnosed yet.

Get the Best Life Insurance for YOU

Are you a college student seeking life insurance? Or the parent of a college student exploring life insurance options? Either way, it’s possible to get amazing coverage at the click of a button!

Here at InsureOne, we make it very easy for you to get a quote online. You can also grab the phone and give us a call at 800-836-2240. Finally, feel free to come into one of our offices near you today!

Myth 1: Whole Life Is “Better” Than Term Life Insurance

It’s apples to oranges to compare one of these life insurance products to the other. Let’s start with a brief definition of both types of coverage.

Term life — This type of policy is only meant to offer coverage for a defined time period or term. Typically the term is for 10, 15, 20, or 30 years. The death benefit is only paid if the policyholder dies during the period in which the policy is in effect.

Whole life — This kind of insurance stays in effect until the end of the policyholder’s life, as long as the premiums are continuously paid. In that regard, whole life includes a guaranteed death benefit.

This guaranteed payout aspect of whole life insurance can make some people think it’s superior to term life insurance. After all, you might pay into a term life policy for its 20-year duration, and the insurer never pays out a dime.

However, the motive behind buying a term policy is to offer financial security for a period of time. Parents of young children might purchase such a policy for a period of time long enough to get the kids raised. Once they’re out of the house and through college and into their own careers, the adult children no longer need the financial security offered through their folks’ policy. Therefore, the term policy has done its good, and the policyholders can stop paying premiums.

So which is better? As you can see, the two types of life insurance can’t fairly be compared and contrasted. Each type is appropriate for customers with different motives and expectations. This is also true of other types of life insurance that should also be considered before a buying decision is made.

Myth 2: A Whole Life Policy Is Also an Investment Instrument

This is a myth with just enough truth behind it to be dangerous. Some whole life policies pay dividends, which can either be cashed out annually, used to reduce premiums, or used to buy additional coverage.

It’s also true that you can borrow against your policy or deduct the cash value that accumulates over time.

So yes, there’s an investment component to some whole life insurance policies, as your broker might be eager to tell you. But that can be a dangerous way of thinking about these policies. Various moves you might make can reduce the payout to your beneficiaries. So if the reason you bought the policy in the first place is to leave something of value to loved ones, you could be working against that goal if you use your whole life insurance policy the wrong way.

Myth 3: If You Borrow From Your Whole Life Insurance Policy, You’re Only Borrowing From Yourself

Many whole life insurance policies let you borrow a percentage of cash value. If you have a $250,000 face value policy and you borrow $5,000 against it and die before you can pay it back, well, your beneficiaries will still receive a generous $245,000. They’re hardly adversely affected.

But keep in mind that your insurer will also charge you interest on the unpaid balance. When you die, it’s not only the borrowed amount that’s deducted from the death benefit but the unpaid interest as well. And that adds up.

If you are forced to borrow against your policy, keep an eye on your balance statements, so you won’t let the accumulated interest get away from you. And pay the balance and interest back as soon as you’re able. But the best advice is to try not to use your whole life insurance policy as an investment tool or a piggy bank. That’s just not its primary purpose.

Myth 4: You Will Never Be a Beneficiary of Your Own Whole Life Insurance Policy

Some whole life insurance policies carry riders that let you cash in part of your death benefit in rare instances while you’re still alive. For example, some policies come with “accelerated benefits” riders, in which a terminally ill policyholder can collect benefits while still alive. Similar arrangements can be made for policyholders stricken with certain debilitating chronic illnesses.

Keep in mind that if you draw down the face value of such a policy, the amount taken will be deducted from the death benefit received by your beneficiaries.

Myth 5: You Can Get a Whole Life Insurance Policy Without a Medical Exam

You might get a mailer or see a late-night television commercial promoting whole life policies without physical exams. These policies are usually targeted at older adults, but they typically have a much lower payout than traditional whole life policies. Sometimes their stated purpose is to provide burial costs.

For the most part, you will be subject to a medical exam before an insurer issues you a conventional whole life insurance policy.

Myth 6: Your Beneficiaries Will Be Awarded Both Your Death Benefit and Accumulated Cash Value

When you pay your premiums, part of your payment goes toward your death benefit. But another part builds as cash value that can be cashed in or borrowed at some point. But what happens to this cash value when you’re gone? The myth is that your beneficiaries get both the policy’s face value and the unspent cash value, but this is usually not the case.

The cash value is usually returned to the insurance company. The somewhat rare exception is more expensive policies that yield both the face value and the cash value to beneficiaries. Ask your insurance agent if you wish to purchase this type of whole life policy.

Ask an InsureOne Agent to Help You Untangle These and Other Myths

Through InsureOne, you’ll find an agent who’s well-informed and eager to help you select the life insurance policy that’s right for you. Start your whole life insurance quote online, over the phone, or at one of our offices near you.

What Does “Life Insurance For Young Adults” Mean?

Contrary to what you might think, there is no separate life insurance policy designed for younger people. Instead, this term refers to the kind of life insurance that best suits a younger person’s needs.

For example, an older person may already be retired and looking at life insurance as a way of providing for his children. But younger people may be looking at life insurance as a way to jumpstart their retirement plans or safeguard themselves if they develop a dangerous health condition.

Benefits of Getting Life Insurance When You’re Young

There are several benefits to getting life insurance at a young age. The first is purely financial: life insurance tends to be much more affordable when you are younger. With the right insurance plan, you can effectively lock a reasonable rate in for years (potentially even decades) well before you develop any sickness or chronic illness that would make your coverage more expensive.

Another benefit is one that most young people never consider: you can effectively use your life insurance as a way to invest in your future. By choosing a permanent life policy that does not expire the way that term life insurance policies expire, you can build up a death benefit over time that you can access and use as needed. While you should diversify investments to more safely retire, it’s great to have a retirement benefit and life insurance policy rolled into one.

Understanding the Two Kinds of Life Insurance

The first kind is term life insurance. As the name implies, this is life insurance that you take out for a certain period of time. Typical terms for this kind of insurance are 10, 15, 20, and 30-year terms. Some like this kind of life insurance because it tends to be more affordable (more on this later), but keep in mind that you will need to take out a new life insurance policy if you want to remain covered when the initial term expires.

The second kind is whole life insurance. This kind of coverage tends to be more expensive because it does not actually expire as term life insurance does. On top of that, this is the kind of life insurance we mentioned earlier that builds cash value over time.

Benefits of Term Life Insurance

We’ve already mentioned the biggest benefit of term life insurance: it is a cheaper option, especially for young adults compared to whole life insurance. This may be a good life insurance choice for those who are still growing their income.

Another benefit of term life insurance is that you can use it to help make plans for the future. For example, someone who intends to start a family may want to take out a 20-year term so they know their child will be financially protected until they are an adult.

Finally, the death payout for term life insurance is typically higher than that of whole life insurance. And in some cases, you can convert your term coverage to whole life insurance coverage.

Drawbacks of Term Life Insurance

Term life insurance is a great option, but there are some drawbacks you should be aware of.  First, there’s the fact that it’s limited by the term you choose. On top of that, if you want to get coverage again after the first term ends, you may no longer qualify because health complications may effectively disqualify you from coverage or drive the premiums up.

Even if you stay in excellent health, you can be guaranteed that premiums will be higher every time you take out a new policy (though you can mitigate this by taking out lengthy policies). This is one of the reasons that so many millennials are seeking lengthy life insurance due to fears of COVID-19.

Finally, unlike whole life insurance, term life insurance does not build up any cash value.

Keep in mind that these drawbacks may not apply to your particular, and the benefits of having the right life insurance outweigh the disadvantages.

Benefits of Whole Life Insurance

The first is the death benefit for this insurance builds a cash value that you can use in a variety of ways later on. So this is a life insurance policy that may double as a retirement benefit when you get older.

The second benefit is that the premium amount is fixed. This is a type of insurance coverage you can keep for your entire life without worrying about the premiums jumping up.

Drawbacks of Whole Life Insurance

The first is that the death benefit is smaller for whole life insurance than a term policy. So while premiums may be higher for term life insurance, that form of coverage may provide a bigger payout for your family.

The second drawback is that it is more expensive than term life insurance. While the premium will stay the same for whole life insurance, it is overall a more expensive form of coverage than term life insurance.

However, it’s important to remember that even with higher cost, a whole life insurance policy could be well worth it for your needs.

Get the Best Life Insurance For Young Adults Today

Now you know why life insurance is so important for young adults and how to choose the right plan. But do you know who makes it easy to get the best life insurance today?

At InsureOne, we are committed to protecting your family with great life insurance coverage. You can request a quote online by visiting our site. You can also visit us at your nearest office or give us a call at 800-836-2240.

To get the coverage you need, you must understand the different kinds of life insurance plans and what they can (and can’t) do for you.

Reputable online sources can help you learn everything you need to know. Our complete guide will compare these different plans and help you decide which is best for you and your family.

Term Life Insurance

This guide will review various types of life insurance and give you all of the information you need to know. And we’re going to start with the most common type: term life insurance.

As the name implies, term life insurance will cover you for a fixed period of time. You may opt for shorter periods (such as five years) or longer periods (such as 30 years).

If you end up dying at any point during that period, then the insurance company pays out a death benefit. And this benefit is effectively paid for by the life insurance payments you are making. Benefit recipients can receive this benefit as a lump sum, an annuity, or a simple monthly payment.

Term life insurance plans are popular with people because they are more affordable than many other insurance plans. Additionally, the premiums for term life insurance are relatively low.

Whole Life Insurance

Term life insurance only covers you for the agreed-upon period of time. But whole life insurance is also known as permanent life insurance because it will cover you for the rest of your life.

Another way of thinking of whole life insurance is that it lasts as long as you wish it to last. The value of your plan effectively goes up with each monthly payment. At your discretion, the equivalent cash value of your policy can be withdrawn and used for other purposes.

On paper, this versatility makes whole life insurance look more attractive than term life insurance. But consider that life insurance plans are far, far more expensive than term.

However, some people prefer the versatility of these plans. The ability to grow the policy’s cash value over time can help those who enjoy estate planning or wish to offer a more significant amount of money to a relative upon their passing.

Universal Life Insurance

“Versatility” is a term we applied to whole life insurance plans. But if you want most of the benefits of those plans with some additional options, you may prefer a universal life insurance plan instead.

Similar to a whole life insurance plan, a universal life insurance plan has a cash value that grows over time. It can be more attractive because it allows you to adjust things like premiums and death benefits without applying for a new plan.

If you should be strapped for cash or want to streamline your paperwork, you can even use the gathering interest of this cash value to pay for your premiums, giving you one less monthly payment to worry about (assuming you have enough cash value built up, of course).

This may sound too good to be true. So, what’s the catch? It all goes back to the interest rate portion of the cash value. That interest rate is tied to the market and may fluctuate over time. And if the interest rate should decrease down to the absolute minimum amount, your premium will go up.

The versatility of this kind of insurance plan is very attractive to those who know what they are doing. People who are still learning about the different types may be better off getting a less confusing type of insurance.

Indexed Universal Life Insurance

It’s probably obvious from the name, but indexed universal life insurance is a type of universal life insurance. What makes this plan unique is the way the cash value works.

Basically, this type of insurance is great for those who understand a bit about the stock market. That’s because you pick a specific index—think of this as a combined group of investments—and this index helps to set the interest rate for your plan.

Now, it’s important to understand that you’re not actually investing in the market directly. And there is a minimum guaranteed interest rate, so you don’t have to worry about losing any money. But you do have to deal with the fact that your interest rates are neither fixed nor varied. Instead, everything is basically determined by the index you chose.

Variable Life Insurance

While the indexed universal life insurance plans are tied to the market, you are still guaranteed not to lose money. Variable life insurance plans, though, incorporate a bit more risk.

When you pay into a variable life insurance plan, the money goes into various accounts that act as a mutual fund. So, it has the potential to grow, but you might lose money as well.

While this option may sound attractive to savvy investors, there are some “catches” you should be aware of. The first catch is that your policy will determine the accounts that you can invest in. So even if you have an expansive knowledge of mutual funds, you won’t be able to invest in just anything on the open market.

The second “catch” may or may not deter experienced investors. And that catch is that this type of insurance represents more of a risk than other types. If the market is going your way, this type of plan can be a great investment opportunity. But if the market is volatile, you could walk away from this plan with significantly less than you originally invested.

Variable Universal Life Insurance

Universal life insurance is mostly a combination of features you can get from both variable and universal plans.

With this type of insurance, you can adjust your premiums and death benefits as needed while investing in the cash value of your policy. But taking on the features of both variable and universal life insurance plans is a double-edged sword because this plan retains the risks of the other plans as well.

Most who are new to the insurance game consider variable universal life insurance plans to be a bit confusing and complex. You are ultimately better off starting with a simpler plan and then graduating to something more complex as needed.

Final Expense Insurance

One reason that you might check out different types of life insurance plans is that some are better suited for certain things than others. For example, if you are primarily focused on covering your burial and funeral costs, then final expense insurance may be your best bet.

If you can think of a cost associated with your death (including everything from medical care to cremation), then final expense insurance will cover it. Because the sole function of this insurance is to make sure the end of life doesn’t create a financial burden for others, this type of insurance is desirable to older people, especially if they don’t already have enough coverage via other plans.

Some type of coverage for final expenses is necessary because an average funeral may easily cost around $10,000. But because final expense insurance involves paying higher premiums for a relatively low amount of coverage, many people rely on other insurance types for their final expenses.

With final expense insurance, you can get simplified insurance that does not require a medical exam but does require answering questions about your medical history. With a guaranteed life insurance plan, you do not need to undergo a medical exam or answer questions about your medical history.

Group Life Insurance

The term group life insurance may not be immediately familiar to you. However, you are already familiar with this kind of insurance: this is the type of life insurance offered to workers by many employers.

And this kind of life insurance has its own benefits and drawbacks. For example, compared to many other types of life insurance, group insurance offers relatively limited coverage. But group insurance is often very cheap and may even be offered for free from your employer.

Obviously, it doesn’t get any cheaper than free! But to have enough life insurance coverage to meet your financial obligations, you may want to supplement a group plan.

Choosing the Right Insurance Plan

There are many different types of life insurance for you to choose from. And you are the only one who can determine which plan is best for your needs.

And the more info you have, the easier it is to make your decision. When you are ready to get covered, reach out to InsureOne online, over the phone, or at one of our offices near you.

One thing is knowing this type of insurance. Deciding whether you need it is another. In this article, we’ll talk about when to buy long term care insurance and how to buy it.

What is Long Term Insurance?

As people get older or become sick, they may need assistance doing daily tasks. Long term insurance—also called long term care insurance—provides services such as assistance with bathing, dressing, etc. and other home care tasks. While many disability and health insurance plans do not cover these services, long term insurance does. 

How Much Does Long Term or End-Of-Life Care Cost?

The expense of long term care is generally not covered by Medicare, and many patients wind up draining their bank accounts paying for care. The average cost per day for home care is about $150 and up to $500 for general inpatient care. 

What Does Long Term Care Insurance Cover?

• Skilled nursing home care
• Assisted living facilities
• Occupational, speech, physical, and rehabilitation therapy
• Adult daycare services
• Home modification
• Help with personal care

Who Should Buy Long Term Insurance?

The older you are, the more likely you will need long term care. If you’re looking to have peace of mind, long term insurance is a good idea. If you become ill or need care, you can rest assured it will be covered. Your children won’t have the enormous burden of paying for your long term care.

Your need for this type of insurance depends on other factors besides age. If you suffer from chronic illness and conditions or have disabilities, you may likely need long term care in the future. Therefore, insurance is crucial.

When to Purchase Long Term Care Health Insurance

Most financial advisers recommend buying long term care insurance in your fifties or early sixties. The average age of policy buyers is around 60. Your health is one of the qualifying factors for getting this insurance, so it’s good to decide before you reach retirement age and are still in decent health.

How to Buy Long Term Care Insurance

It’s best to have a professional help you choose the best insurance company. A reputable independent insurance broker can help you find the best price based on where you live, your age, health, etc. Consult your financial adviser to see if this insurance makes sense for you. It may be a vital part of your overall financial plan to preserve your spouse or heirs’ assets.

Refrain from buying too much or too little insurance. Make sure you study each policy carefully to choose the right one for your needs. The younger you are when you purchase long term care insurance, the less you’ll pay.

Research your options, and don’t feel pressured into making a final decision. After all, it’s about your health!

You have great insurance options at InsureOne. We take the guesswork out of choosing a policy and easily find the perfect one for your needs and budget. Get a free long term insurance quote online, over the phone, or at one of our offices near you.