Introduction: How to Find the Best Life Insurance Policies

Being prepared for the future is one of the smartest financial decisions that we can make. 

Whether that means investing in a quality retirement account or trying to pay off the mortgage before term, future financial planning is an important process that everyone should take seriously. 

While thinking about our eventual passing isn’t exactly the most inspiring of subjects, finding the best life insurance policy is just as important as the other steps in financial preparedness. 

None of us can foretell the future, but we can prepare for the unpredictable.

Death can be a costly expense for many families, and if the head of household passes away, his or her family may very well be left without the financial means to provide for themselves in the long term. 

The best life insurance policy can help families economically during the difficult times of the passing of a loved one. 

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But how do you know which life insurance policy is best for your own situation?

In this brief article, we will look at who should be looking for the best insurance policy, before going on to explain the difference between a whole life insurance policy and a term life insurance policy. 

We will answer the question, “What is a term life insurance policy?” before offering our top six tips to help you find the best life insurance policy for your personal budget and personal life situation. 

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Who Needs to Search for the Best Life Insurance Policy?

Unless you have a crystal ball hidden in your closet that tells you exactly when you’ll live your last days, you probably need a whole life insurance policy or a term life insurance policy.

Even if you are in perfect health and living a wholesome lifestyle, you never know when a freak accident could leave your family not only without their loved one, but also without the economic means to provide for themselves. 

While everyone should consider investing in the best life insurance policy for themselves, there are certain individuals who more urgently need to consider life insurance policies for themselves. 

If you have a family history of hereditary diseases, you never know when a routine trip to the doctor’s office could leave you with some bad news. Searching for the best life insurance policies while you’re still healthy can help you plan for the worst if your health were to suddenly deteriorate. 

Furthermore, if you are the head of a household and the main bread winner for your family, you’ll need to consider how your family will continue to economically survive in the unfortunate event of your passing. Finding the best whole life insurance policies or best term life insurance policies can help you and your family have an economic plan for the future should you no longer be around to provide for them. 

Whole Life Insurance Policy Versus Term Life Insurance Policy

Though there are thousands of different types of life insurance policies, all promising different benefits and advantages, life insurance policies are usually divided into two categories: a whole life insurance policy and a term life insurance policy.

What is a term life insurance policy? According to Investopedia, “Term insurance is a policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end.”

A term life insurance policy will only cover death benefits for a certain number of years agreed upon in the policy. Term life insurance policies are best suited, then, for individuals who feel that they only need to cover death benefits for a temporary period of time. 

The premiums on term life insurance policies are determined by your age, health, and general overall well-being. While you may end up paying much less for the best term life insurance policies, if you want to renew the policy at the term’s end, you will most likely have to pay a higher premium based on your attained age and any changes in your health.

Whole life insurance policies cover death benefits until you pass away, not just for an agreed upon term. Furthermore, whole life insurance policies usually contain both an insurance and an investment component. Besides paying death benefits, these life insurance policies will also allow you to invest a part of your money where it can accumulate. 

These types of life insurance policies are probably the best life insurance policy for people who are interested in having the ability to withdraw parts of their policy during their lifetime. Regular premium payments during the lifetime of the policy cover the insurance death payment, while equity can also accrue either through a savings account or investments. This is the best life insurance policy for you if want a living benefit along with death benefits. 

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Top Six Tips for Finding the Best Life Insurance Policies

So, how do you know which are the best life insurance policies for you? Below you’ll find our top six tips to help you find the best insurance policy and the most affordable life insurance policy for you. 

  • Consider Your Personal Situation When Shopping for the Best Life Insurance Policy

There is no universal “best life insurance policy” out there. The best life insurance policies will depend on your own individual needs and personal life situation. While you will usually pay a little bit more for the best whole life insurance policies than for term life insurance policies, the benefits are usually greater. 

However, if you prefer to keep your insurance and investments separate, then a term life insurance policy with the possibility of renewal is probably best for you.  According to USA Today:

“[T]erm life is simply life insurance and nothing more. This allows you to be more flexible with other financial products, shopping separately to get the best price and the best fit instead of a complicated agreement that may not be your best option and is structured in a confusing way.”

If you get confused by complex financial products that bring together insurance benefits, savings accounts, and other long-term investments, then you might do well to choose among the best life insurance policies that offer only death benefits. You can then have the freedom to research the large number of other financial investment products that may be a better fit for your investments. 

  • Have a Plan to Self-Insure if You Go with Term Life Insurance Policies

If you have ever asked yourself, “What is a term life insurance policy?” chances are that you have other ideas in mind to plan for your economic future. While the best life insurance policies will make sure that your family is taken care of in the event of your death, they are not the only way to prepare for your family’s future well-being. 

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Many young people who feel confident in their ability to accrue wealth over the long term may choose life insurance policies that have a short term, say 10-20 years, while they are climbing the corporate ladder and accruing wealth in other investments on their own. 

If you do choose term life insurance policies, you will want to make it an economic goal to have the ability to “self-insure” within a certain time frame. Otherwise, you will most likely have to pay a higher premium if you do choose to renew in the future because of your advanced age. 

  • Make Sure You Understand What Type of Best Insurance Policy You Are Buying

Insurance agents can often be confusing. The large number of products that they offer with a number of different premiums, benefits, investment options, etc. can confuse the best of us. 

Be wary of purchasing any life insurance policies from agents who don’t completely explain to you the terms and conditions.  Forbes magazine recommends that you “always remember that you are the client. At no point should you feel bullied or intimidated into buying something that you aren’t sure of.”

Furthermore, while you may be attracted by the numerous “extras” and investment options that the best life insurance policy offers, you should never get yourself into a life insurance policy that has premiums that are too high for your budget. High premiums are the number one cause of people allowing their life insurance policies to lapse. 

  • Get Various Quotes for the Best Whole Life Insurance Policies and the Best Term Life Insurance Policies

Don’t be afraid to shop around. There are literally thousands of different life insurance policies offered by different companies. Chances are that the best life insurance policy for you probably won’t be offered by the first agent to stop by your home.

Most of the big name life insurance companies will offer free quotes on their websites, but you can also use other unbiased websites such as Policy Genius. This website will offer you competitive quotes from over 25 different insurers so that you can find the most affordable life insurance policy that still offers quality death benefits and other extras you’re interested in. 

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  • Find an Affordable Life Insurance Policy Even if You’re Strapped for Cash

Some people may think that they simply cannot afford life insurance policies. While living paycheck to paycheck may make you feel that you simply can’t pay any extra bills, there are ways to find affordable life insurance policies, especially if you’re young and in good health. 

Term life insurance policies tend to be much cheaper than whole life insurance policies. Furthermore, because they are direct and to the point, the best term life insurance policies will easily allow you to compare the best rates and find a quote that fits your budget. 

This article provides some other hints on how you can find life insurance policies that work with even the strictest of budgets. 

  • Consider Signing Life Insurance Policies for the Whole Family

While most people only think that life insurance policies are needed for the head of household or the main bread winner in the family, there are numerous advantages and benefits to taking out life insurance policies for the whole family. 

A death in the family is obviously a traumatic experience. Besides the costs directly associated with funerals, your family may very well have taken on significant debt in medical expenses before your loved one passed away. 

The best life insurance policies that you take out for your whole family may very well help you shoulder those costs without ruining your financially. 

Furthermore, the best life insurance policies will most likely offer discounted premiums for family plans. You may very well be able to find more affordable life insurance policies if you take out a plan for you whole family.

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The Best Life Insurance Policies as a Way to Prepare for the Future

Although no one likes to think about death, it will happen to all of us eventually. When unprepared for, the passing of a family member, especially one economically sustaining the family, can be financially devastating. 

The best life insurance policies, however, can help to erase the financial worries for your family. By following the simple tips above, you can easily find the best insurance policy that will allow you to continue to care for your family even after you are gone.

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