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Choosing a life insurance policy isn’t as simple as it seems because there are various policies available. Here’s a guide to the various life insurance options.

Did you know that 37% of Americans don’t have life insurance? Many believe they can’t afford it. But if you know your options, you might think differently. You should also realize that having decent life insurance can actually make you healthier.

How Life Insurance Affects Your Health

Life insurance is purchased to protect your family if you pass away. It isn’t the same as health insurance, which covers your medical costs while you are alive. However, this doesn’t mean that life insurance can’t have surprising health benefits.

Polls have shown that one of the biggest reasons people are stressed is that they worry about how their family will be provided for if they pass away. This stress causes a toll on their lives, which can cause other health problems. The good news is that having life insurance limits this stress and can help them be healthier.

Dina Constantinou, an insurance industry veteran with 20 years of experience, discussed this on Quora.

“Life insurance offers peace of mind. If one considers that equivalent to stress relief, then yes, it does. It provides individuals with the comfort of knowing that their loved ones will be taken care of in the event of their unexpected death. At the very least, it ensures the next of kin will not be stuck paying for funeral costs and final expenses out of their own pocket. I would imagine that does relieve some amount stress for most people.”

Life insurance is one of the most affordable insurance products on the market. In fact, buying insurance of any kind can be a positive experience with the right preparation.

If you know your options ahead of time and have a good plan in place, it’s actually easy. Easier than choosing the outfit you’ll wear to your sister’s wedding next month.

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Here’s our comprehensive guide to the life insurance options available on the market today.

Life Insurance Options

Let’s talk about the three most common types: Term, whole, and universal. These three make up the backbone of the life insurance options on the market.

We’ll discuss the basics of each here. We spoke with some experts from LifeNet Insurance to learn more about the options. They gave a surprising amount of information that can offer you peace of mind when buying with them or any insurer.

Term Life

If you’ve ever filled out a loan application, you know that they ask for the cash value of life insurance. Which is really confusing to anyone who doesn’t know the difference between term life and whole life insurance. Either way, life insurance is a must for everyone, as no one can predict the future, and we all must prepare for the unexpected.

Term life insurance is the simplest product on the market. It carries $0 cash value. That’s right, if you’ve got term life insurance, feel free to write $0 in that spot the next time you fill out an application.

Even though it carries no cash value, term life is a great option for most. Why? Because the premiums are lower.

With a term life policy, all you need to do is pick how much coverage you want and how long you want it to last.

For example, you can buy a $350,000 term life policy that lasts 30 years at $50 per year. That means you’ll pay $50 per year for as long as you want the policy up to 30 years. At the end of the term, you’ll need to reapply for another policy.

No cash value, but easy terms and plenty of options.

Whole Life

If you’re looking for a permanent life insurance option, whole life is the way to go. With a whole life policy, your premium remains the same indefinitely. As long as you pay the bill, you get to keep the policy. You also need to be careful with the commissions of other plans, because they can be as high as 90%.

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Whole life also accrues a cash value. Meaning the longer you pay, the more money it’s worth. If you decide to cancel the policy, you can cash in the value at that time.

The downside? It’s more expensive.

Like with our previous example, you can buy a $350,000 policy. It will have no end date and it will accrue a cash value over time. But it will cost you $500 per year instead of $50.

Whole life is a good option if you’re buying insurance early in life when you’re in good health and the premiums are lower. Or if you want something that’s going to last forever and don’t mind a higher premium.

Universal Life

Universal life is similar to whole life but more flexible. It also has no term, so it lasts forever. And it accrues a cash value.

The difference between universal and whole life is that you get to choose how much of your monthly premium goes toward the death benefit and how much goes to cash value.

In that way, you can ramp up the cash value if you need. For example, if you plan to take out a short-term loan using the life insurance as collateral.

Do Your Research and Plan Ahead

Basic life insurance options are not difficult to understand. All you need is to do a little research before you buy. Figure out how much you need and what type of policy you can afford right now.

For the most obvious reasons, plenty of people avoid even taking out a life insurance policy on themselves. While it signals a stage of life that people, in general, don’t really want to think about, getting life insurance is critical for other reasons. Life insurance isn’t just for paying out beneficiaries after you’ve passed. It can also be used to fund things such as college tuition payments and home purchases. It is also smart to take out life insurance early on in life, as it can be more expensive and difficult to get a high policy amount as you advance in age. Here are the six most important reasons to take out life insurance once and for all.

1. Life Insurance Is a Great Investment

Whenever someone creates a budget, they have to figure out how to spend their money on all the important things. Of course, there are housing costs, which can be high or low. After that, there’s utilities, and food, hobbies, and entertainment. Most people know that savings and retirement should also be part of their budget. While having an IRA or 401K is nice, life insurance is another type of investment that can be put in an easily manageable budget. Premiums are due monthly in most cases, so you can pay for your life insurance just as you would pay your car note. If you want a long-term investment that isn’t going to depreciate then life insurance is something you should include in your overall budget.

2. Taking Out Multiple Policies Is a Smart Financial Move

Say you start out taking out a small life insurance policy in the amount of $50,000. Depending on the kind of policy you elect to purchase, you can have one fully paid off in a matter of years. After that, you may start realizing that your lifestyle has changed and your family has expanded. Realistically, $50,000 may not enough to cover all your final expenses and leave your loved ones with enough money to survive on their own. There would be nothing to prevent you from getting a new life insurance policy, either with the same or a completely different insurer. Companies such as LifeNet Insurance Solutions offer

3. Life Insurance Becomes More Expensive As You Age

Life insurance providers recommend that you take out a policy in your 20s or early 30s for several reasons. First, a healthy non-smoking young adult is going to have much lower premiums than someone who is in their 50s and uses tobacco products. In fact, some types of life insurance policies can be purchased over a certain age. This is especially true when you start looking at policies worth $500,000 or more. This shouldn’t deter people from purchasing life insurance at any age, but everyone needs to be aware of how it works. The sooner you get a life insurance policy, the cheaper it is going to be for the insured party in the long run.

4. Protecting Your Family’s Future

Without life insurance, what would your family do if something tragic were to befall you? If you are the main breadwinner in your family, you have to do more than just put money into your retirement amount. Think about factors such as mortgages and outstanding car payments. In the event that you are not around to provide for your family, how would they maintain their current lifestyle? If you have a family member who is disabled, how would your family get the financial resources needed to pay for equipment and medical treatments? Investing in life insurance is basically just making certain that your family will have access to a large amount of cash that can be used to keep them flush for many, many years.

5. Life Insurance Can Be Viewed as a Tangible Asset

Whenever you talk to a financial advisor, you will be asked about your current debt load as well as your assets. Obvious things like property, recreational vehicles, and stock and bonds are mentioned immediately, but life insurance policies also have a tangible value. If you do have life insurance, it means that you have additional and tangible assets that can be used to inflate your total net worth. This can be important when going in to apply for loans, but more importantly, it helps to show just how on track you are, financially speaking.

6. Insurance Policies Provide Leverage

Sometimes in life, you need to take stock of everything you have available to get out of a serious financial bind. It might be that you are facing foreclosure on your home after being out of work for a long period of time. If you suffered a workplace injury and need to hire an attorney, things may look bleak unless you are able to come up with a lot of cash fast. Totaling out a car might require you to replace your vehicle, so you can continue to work, and you may not be able to wait until the appraiser completes the investigation. If you have a whole life insurance policy, you can cash out a portion of it almost immediately and use the funds to help offset the effects of major life events. Whether you are estate planning with your attorney or trying to get out of a financial bind, life insurance is valuable to have.

Having life insurance is a lot like having a bank account with a large balance or even a CD that you know is going to mature in the future and pay dividends. You can rest a lot easier knowing that your family will have additional funds available to help them keep living their lives. As long as you pay your premiums, your family is guaranteed to have access to a life insurance policy that can be used to make the transition into a new era a lot easier. Take out just enough to pay for your final expenses or invest in a life insurance policy that will help pay off the house, send the grandchildren to college, and allow your bereaved spouse to live a little better.

Baby boomers have special needs when it comes to life insurance. Because of longer life spans they have the added burden of not only thinking about themselves and family, but also their parents.Redmond, WA, United States, February 12, 2015 /PressReleasePing/ - LifeNet Insurance Solutions released a free report today: Guide To Life Insurance For Baby Boomers. This new report reveals how to get the best value in life insurance coverage and what type of coverage is best for any circumstances.Lenny Robbins owner of LifeNet says “For too long people have been in the dark on the costs and problems with various types of life insurance. This report helps to open the curtains on the industry and give non-agents the insights one won't find elsewhere.”“Many baby boomers” Robbins says, “have been told by consumer advocates that term insurance is always the best choice, and permanent coverage should be avoided at all costs.”  While this may be true, especially for young families with large insurance needs and smaller assets, baby boomers need to reexamine their priorities and make sure they're covered appropriately.This is especially true since many carriers have enhanced their policies with living benefits that have real value given the cost of long term care insurance as well as the need for cash in a medical emergency.  Best of all, these benefits are free riders or incorporated into the policy itself, but have not translated into higher premiums.  In fact, premiums have decreased in general as benefits have increased.For example, several carriers have recently incorporated a “return of premium” benefit into their permanent products which gives the owner/insured the right to cancel the policy at certain fixed times, so that if the protection is no longer needed a lump sum of cash is available instead of simply dropping the policy or trying to sell it through a life settlement.Remember, the educated consumer has the information necessary to make an informed decision when it comes to one of the most important financial decisions in one's lifetime.The report can be downloaded free at LifeNet Insurance Solutions website.About Lenny RobbinsLifeNet Insurance Solutions was founded in 1991 by Lenny Robbins, and serves the Baby Boomers and Seniors insurance marketplace throughout the United States.For more information about us, please visit http://www.lifenetinsurance.com

Baby boomers have special needs when it come to life insurance. Because of longer life spans they have the added burden of not only thinking about themselves and family, but also their parents.

Redmond, WA, United States - LifeNet Insurance Solutions released a free report today: Guide To life insurance For Baby Boomers. This new report reveals how to get the best value in life insurance coverage and what type of coverage is best for any circumstances.

Lenny Robbins owner of LifeNet says “For too long people have been in the dark on the costs and problems with various types of life insurance. This report helps to open the curtains on the industry and give non-agents the insights one won’t find elsewhere.”

“Many baby boomers” Robbins says, “have been told by consumer advocates that term insurance is always the best choice, and permanent coverage should be avoided at all costs.”  While this may be true, especially for young families with large insurance needs and smaller assets, baby boomers need to reexamine their priorities and make sure they’re covered appropriately.   

This is especially true since many carriers have enhanced their policies with living benefits that have real value given the cost of long term care insurance as well as the need for cash in a medical emergency.  Best of all, these benefits are free riders or incorporated into the policy itself, but have not translated into higher premiums.  In fact, premiums have decreased in general as benefits have increased.

For example, several carriers have recently incorporated a “return of premium” benefit into their permanent products which gives the owner/insured the right to cancel the policy at certain fixed times, so that if the protection is no longer needed a lump sum of cash is available instead of simply dropping the policy or trying to sell it through a life settlement.

Remember, the educated consumer has the information necessary to make an informed decision when it comes to one of the most important financial decisions in one’s lifetime.

Before starting your search for life insurance for seniors over 60 it’s best to figure out in advance an approximate amount of coverage that you’ll need for final expenses. Include things like funeral costs and any outstanding bills. Once you’ve arrived at an amount, that number will help you choose the type of coverage you should purchase. 

Start Small

Starting with smaller amounts, say anything up to $25,000 in coverage, will limit you to simplified issue policies that do not require a paramedic exam. This is the easiest way to purchase life insurance for seniors over 60.  There are about a dozen insurance companies that offer this type of life insurance. If you can answer all the medical questions asked with a no, then the carrier will issue the policy after examining various databases that will check your medications for accuracy of your answers.  If everything is in order, your coverage will start immediately upon payment of the first month’s premium.  If you have certain health conditions that prevent immediate coverage, you may qualify for a “graded benefit.” 

Policies differ on this coverage with some paying for a death from medical reasons after a two-year waiting period while others pay a percentage of the death benefit during the first two or three policy years. (These policies cover accidental death at day one.) If you are healthy, your decision of which carrier to choose can be based on cost and quality of the company. If you have health issues, you may qualify with one carrier and not another.  From your standpoint as a consumer, the best advice as to which insurer to use should come from an experienced independent agent. They know how the questions differ and can help you to choose the right company for your situation.

Guaranteed Issue Coverage

If you are unable to qualify medically for life insurance, you still can purchase “guaranteed issue” coverage. This policy type is available to most people as long as they can sign the application.  Applicants must be 85 years old or younger. In a few states 80 is the maximum age. Unlike other coverage, this policy has a two-year wait before the death benefit takes effect.  However, if the insured dies within that two-year timeframe, all premiums paid plus interest are returned to the beneficiary. Seniors also have the ability to buy a fully underwritten policy that requires a paramedic exam and medical records. Depending where you live, it is possible to purchase $25,000 or more of life insurance. (Some states require a minimum face amount of $50,000.)  Because the insurance company will have more information with which to make a decision, the cost of coverage is less, in some cases significantly. Because of this, a potential applicant who wants or needs $15,000 of “final expense” coverage may wish to compare premiums to a $25,000 policy that is fully underwritten.  Although many seniors are not comfortable with having blood drawn, often having another family member present will alleviate that concern. 

Term Insurance for Seniors

A word about term insurance for seniors. Although term coverage is available for purchase well into the 70’s for many people, there are many differences between buying term vs. permanent coverage at older ages.   While term is less expensive than permanent coverage at younger ages, that is not as much the case when you’re older. Also, there is the real risk of having term coverage end while you are still living.  What’s important here is the purpose of the coverage. While most seniors purchase coverage to protect their family having to pay final expenses including funeral and other obligations, someone seniors only needs insurance for a short time to coverage a mortgage or some other temporary need. In this case, it is reasonable to consider term insurance. While this article is intended to acquaint you with the various options available when buying seniors life insurance over age 60, each applicant may have unique health issues which can impact the choices available to you.  Therefore, while the information in this article will help you to understand the various types of life insurance, there is no substitute for an experienced independent life insurance agent.  Not only can an agent help you to finalize the appropriate coverage for you, the agent can also give advice based on your current health and compare premium prices to ensure you get the best value for your money. For additional information including our E-book on senior life insurance, visit us at LifeNet Insurance Solutions.

There’s no getting away from it; life is stressful. Whether it’s because everyone is trying to fit more into their lives, or simply expecting more of themselves, stress is an almost universal experience. A certain level of stress is no bad thing, as it can motivate and drive us on, but if you are feeling worn out and constantly under pressure, you need to address the situation before you become more seriously ill. There are plenty of books and online articles discussing the best methods to de-stress and become more relaxed, and their advice is well worth following, but you can also take steps to prevent some of the key causes of stress.

Dealing with a crisis

One of the worst causes of stress is when something goes wrong. If you feel you are on the limit of being able to cope with work or family and there is an accident or a major expense, anything that comes out of the blue, your stress levels can go through the roof. Clearly, not all eventualities can be prepared for, but there are some things you can do that will avoid the extreme stress these events can generate. Insurance is the best way of avoiding the expense of loss and damage, minimizing the impact on your stress levels. If, for example, your dog gets stuck in a rabbit hole and breaks a leg if you have pet insurance your policy will cover the bulk of the cost. If not, you have the problem of raising the cash, which could run into the thousands, and if you don’t have that kind of money you’ll have to borrow it, or worse, face having to have your pet put to sleep. That’s a recipe for extreme stress and unhappiness, which could have been avoided. Life insurance will provide a safety net for any personal misfortune and reduce the stress of serious illness and the effects on your family. Insurance is well worth the investment for the peace of mind it provides, and you can use a broker to help you select the right policy, like LifeNet Insurance Solutions.

The importance of maintenance

You know how it is, you’re so busy running around getting everything done, and in the back of your mind you know it’s been a while since you checked the tires on your car, but you can always have a look tomorrow when you have more time. Of course, the following day you’re just as busy, and the next thing you know you’re parked up at the side of the road with a blown tire. Your stress levels are rising because you have a presentation to give at work, or you’re going to be late fetching the kids from school. This scenario is all too common, and the principle of having a maintenance schedule to prevent breakdowns applies not only to cars but your home and your health. A little time spent preventing such problems results in fewer stressful situations, so it’s worth the minimal effort involved in incorporating maintenance checks into your schedule.

By preventing stressful situations arising in the first place, you are taking control of your life and maximizing your available time, while minimizing avoidable costs. If you can tackle these major stressors, you will find your life is less about fire-fighting and more about achievement and enjoyment.