This article was sponsored by SelectQuote but all thoughts and opinions are my own.
When it comes to planning for the future, there is a lot to think about. And there are a lot of things we would prefer not to think about. Retirement? Fun to think about. Wills? Life insurance? These are things we don’t want to think about. No one wants to plan for the end of their life, and when it comes to life insurance, we really don’t want to think about our lives ending earlier than we would like.
What is life insurance? Very simply, it is a policy that pays out upon the death of the policy holder. How much depends on the policy you buy.
Who needs life insurance? Does someone rely on you financially? Do you bring in the money in your family? Then you absolutely need life insurance. But what if you’re a stay-at-home parent? You don’t have an income. However, I think every stay-at-home parent would agree that their work is vital to the family. If that parent isn’t there anymore, who will care for the children? And how will the family afford that?
What about someone like me? I’m single with no kids. But if something happens to me, I still have a house payment and a car payment. Sure, my heirs could sell those things, but it would be nice if they didn’t have to do so right away. Then there are the costs of death – medical expenses and funeral expenses. I don’t want to leave that to my family. A simple life insurance policy could leave everyone in a much better position.
Life insurance can be very expensive. But if you choose the right type of life insurance, you can have peace of mind for a reasonable price. There are two basic types – permanent and term life. Permanent is life insurance that lasts for your lifetime. It doesn’t matter if you die at 50 or 100, you have life insurance. Naturally, that’s much more expensive.
Term life insurance is much simpler. It lasts for a specific term (usually between 10 and 30 years), and you pay a set premium based upon the likelihood of you dying within that term. So if you’re 35 and you decide to get a 10 year policy, your premium is relatively low, because the odds are good you will live to be 45.
Why would you want to get term life instead of permanent life insurance? Cost is one big reason. Permanent life insurance is expensive. But also, your needs will change over time. Maybe right now, you’re 30 and have two small kids. In 30 years, the odds are good that those kids will have moved out of the house and no longer need your daily financial support (let’s hope, anyway). Maybe you don’t have kids, but have a mortgage and other loans that you will have paid off in 20 years. A 20 year term life policy will prevent all of that from falling onto your spouse.
Think you’re too young for life insurance? Check out this article about why life insurance is a no-brainer for millennials.
But where to get term life insurance? A lot of companies provide term life insurance and it’s tough to tell which one is best for you. That’s where SelectQuote comes in. SelectQuote has been around since 1985 and they do the hard work for you. They work with you to determine your needs without pressuring you to buy more insurance than you want. They get quotes from the most highly-rated insurance companies for you. And the best part is that with SelectQuote, you get an agent who is there to answer all of your questions. Life insurance is complicated. Let SelectQuote help simplify it a bit.
How does it work? Go to the SelectQuote homepage and fill out their simple form. (In the alternative, you can call directly, but I like the online option.) After answering a few questions and providing your contact information, a SelectQuote advisor will contact you to discuss your needs. It’s super easy and no pressure. From there, you will need to choose your life insurance company (don’t worry, they help with this decision). They’re all highly rated, so you can’t make a wrong choice. Next up is the checkup. SelectQuote will send a licensed paramedic to you for an exam and some bloodwork. You’ll get a free copy of all of this information.
Why do they need your medical information? Well, that’s how your premiums are calculated. If you’re excessively healthy, you are cheaper to insure because the odds are good you will live a long time. If you’ve got some health issues, you can still get insurance, it just may be a bit more expensive.
Then you get your final policy and price information. Depending on what state you live in, you have up to 30 days to get a full refund, so there’s plenty of peace of mind that you’re making the right choice.
The best part? Once you have your policy and your cost, it will not change for the life of the policy. Not every life insurance company offers this. If you have a 30 year term life policy, your annual premium will stay the same for the entire 30 years. It doesn’t matter if your medical information changes. You will not pay more. So it makes sense to lock this in while you’re young and healthy.
What happens when your policy expires? SelectQuote gives you a couple of options. You can convert to a permanent policy or you can renew on a yearly basis. Your premium is no longer guaranteed at this point, but you don’t have to have another medical exam which is great.
No one wants to think about needing life insurance. But getting a policy in place now provides you with the peace of mind that if anything happens to you, your family will be taken care of.
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