When Should I Buy Life Insurance?

Purchasing life insurance is great choice to make. The ins-and-outs of the purchasing process, however, can be a bit overwhelming. From deciding when you should acquire a policy to knowing how much coverage to buy to finding the best life insurance carriers, there are many things to be taken into consideration. Thankfully, with a bit of research, we have come up with some helpful tid-bits of information relating to when it will be best for you to buy life insurance. 

Are You Single?

If your answer to this question is yes, and you have no intentions of getting married or having children, it’s probably best that you don’t squander away your money on a life insurance policy. That’s right! Unless you have someone who is or will be dependent on your income, there really is no reason for you to purchase a policy. On the other hand, even if you’re single right now, if you have a parent or plan to have a child who is dependent on your income, it will be best for you to go ahead and purchase a policy as soon as possible.

Are You Married?

If you’re married, go ahead and start taking steps to purchase a life insurance plan. You never know what will happen from one day to the next. Because of this, to help you sleep better at night, purchase a policy and leave your spouse as your beneficiary. In the event that you become deceased, your spouse will have the financial means to continue living according to the standard that the both of you were currently living at. Just make sure you purchase a policy that provides adequate coverage to sustain such a standard.

Do You Have Children?

If so, you will want to buy a life insurance plan as quickly as possible. The funds that will be inherited through the policy by your children in the event that you die can be used in any manner that they see fit. From buying a house to paying for college, you need to make sure you leave something behind for your children.

Are Your Kids Grown?

If the kiddos are grown and out of the house and taking care of their selves, you may still find it useful to invest in a life insurance policy; however, keep in mind you won’t need to purchase a plan with an extremely high payout.

What You Should Know About Medicare Supplement Plan N

Healthcare coverage is something that can be very confusing when trying to understand the benefits of a plan.  Insurance is extremely important when you’re striving to have a long and fulfilling life.  In order to achieve that goal, you’ll definitely want to have a good healthcare plan so you can rest easy.

Medicare offers a supplement to their current range of plans which is called Medigap insurance.  Medicare plan N falls under that category.  Even if you’re privately insured, your private insurance company typically does not take care of 100% of the costs should you need to use it.  Medicare Plan N helps to fill in the holes left by your own insurance company.

Another advantage to Medicare supplement Plan N is that if you’re currently on Medicare, and if you’ve used your entire benefit so that funds are no longer available to cover your hospital stay as time goes on, Medigap plan N will cover up to a whole year of hospital costs for you.

Yet, another benefit to Medicare Plan N, when used to supplement Medicare Parts A and B, is the travel benefit.  For those that love to travel, there is always that off chance that an emergency will occur.  Some insurance companies will not pay while traveling abroad, but Plan N does.  This benefit alone makes this plan one of the most popular supplements to Medicare that are currently available.

On that note, the benefit is also reflected in the price.  It is one of the more expensive plans since it is one of the most beneficial plans.

Because it can be quite cumbersome to qualify for any Medicare plan, it is very important that you know all of your options and plan in advance before choosing whatever the right plan is for you.  Medicare supplement plan N will most likely have a deductible of around $2,000.00.  That means you will have to be essentially out of pocket for the first $2,000.00 of medical care that you require.  However, once the benefit kicks in, you will have everything paid for you in full.  It’s best to be informed of the true cost of any of the Medicare plans available before making your decision, rather than picking a plan, not being able to afford it, and having to cancel that plan and re-qualify for an entirely new plan.

Shopping For Term Life Insurance

In the market for term life insurance, but don’t know where to start? This is a problem that plagues many first time buyers, but the process is actually easier than you think. Keep in mind a few key steps to help get you started.Talk About Price Breaks

life insuranceEveryone wants to get a deal, even in terms of life insurance. When you’re shopping around, make sure to inquire about potential price breaks up front. It is much easier to get a low starting rate from the beginning, and can mean potential savings over the course of decades. It is much more difficult to negotiate for lower life insurance rates years into the contract, once you’ve already bought into a policy.

Discuss Renewal Guarantees

A renewal guarantee can be one of the most important aspects of life insurance negotiating you come across. Having this feature in your contract means the insurer must continue to offer coverage so long as you are paying premiums, regardless of a change in health or other emergency care that might arise. This means you have a security net even if you fall ill, which is a crucial stipulation.

Payment Options

Purchasing life insurance is exactly that—a purchase. As such, it is important to know up front what sort of payment plans are available to you. Will you pay monthly? Bi-monthly? And how will the payments be taken? Direct deposit? Check? Discuss all of these options and any other payment questions you might have early on in the process, to ensure you end up with a plan that you are comfortable with.

Choose Based on Lifestyle

When looking at insurance plans, it is key to keep in mind the sort of lifestyle you lead. Do you like to scale mountains? Do you dive with sharks? Or are you more likely to spend vacation time at home? Knowing these characteristics about yourself will help your insurance agent determine the best policy, and the best rates, for your needs.

Purchase Young

Possibly the best tip for buying life insurance is to purchase at a young age, which has several benefits. This secures you low rates, often averaging out to less payments over a lifetime. It can also secure you premium coverage as opposed to buying later in life, when health problems might make you a less attractive candidate to insurers. Overall, as soon as you are in a position to buy life insurance, you should.

The decision to buy life insurance is a big one, and it can often seem overwhelming and stressful to some. But this doesn’t need to be the case. By keeping in mind some key tips, you can make a reasoned decision for the security of your future.

Quick Guide on Medicare Supplemental Insurance

Preparing for retirement can seem like a full-time job for people approaching 65, and one important topic for discussion is insurance and how Medicare might not cover everything required for medical expenses. Unexpected out-of-pocket medical expenses can put a big dent in a retiree’s fixed income, and it’s vital to investigate alternative methods for covering healthcare costs.

Private insurance companies offer a type of insurance known as “Medicare supplemental insurance,” which is usually known as a “Medigap” policy. Items covered by Medigap policies that aren’t covered by the government through Medicare include items such as certain medical supplies and some services such as long-term care and in-home care.

Other types of coverage included in Medigap plans will cover items such as protection during travel in a foreign country, certain preventative care visits to the doctor, and extended nursing home stays.
open enrollment
Researching enrollment in various Medigap policies needs to happen before someone hits retirement age because the Medicare system is complex. Policies are simply labeled with a letter and will be known as “Plan A” or “Plan B.” In most cases, the plans at the beginning of the alphabet offer fewer benefits than the plans at the end of the alphabet. Medigap Plan F is the most popular plan. It covers nearly all the gaps in Medicare.

In addition, the premiums and amount of coverage offered under Plan A or Plan B would be less than the coverage and premium cost of Plans H, I, or J. It is essential to consider when choosing which Medigap plan would be best that not every insurance company charges the same amount of money for each plan. This means that looking at identical plans from different companies might show completely different costs.

Tips for Choosing a Policy:

1. Medigap policies are always clearly identified by insurance providers as “Medicare Supplement Insurance.”

2. Due to government guidelines, Medigap policies must offer similar fundamental benefits. These guidelines exist to protect seniors and ensure that policies provide similar protections and coverage.

3. Each state has different guidelines beyond the federal requirements for Medigap policies. Policies considered by future retirees need to match their state of residence.

The best time to research a Medigap policy is at least a year in advance of an expected retirement date. The best time to enroll in a plan is during the initial open enrollment period granted to seniors the year before the age of 65.

Do I Need Final Expense Insurance

questionAn unfortunate truth in our world is that all of our lives must come to an end. Tragically, we cannot know when this end will be, but this simply requires us to prepare for this end, whenever that may come. One excellent way that some folks have chosen to prepare for their death is to purchase final expense insurance. Final expense insurance is not the solution for every person. In fact, for some people this option may not be the best decision, but for most folks this is a very beneficial service.Final expense insurance covers the cost of our final expenses. This could include costs for such things as the mortuary fees, casket fees, funeral service fees, even flower arrangements and graveside marker fees. The average total of all of these fees for a basic funeral could costs upwards of $8,000. This is an extraordinary burden to leave with your loved ones when you are no longer around to cover these costs. Also, even if you do have the funds to cover these costs in your estate, this would be a significant portion of the inheritance and legacy you are leaving behind for your beneficiaries. Having an insurance policy to cover all of these expenses will ensure that you leave your loved ones with as much of you as possible.

Most of us have insurance policies to cover unplanned or large expenses. We have insurance policies for our vehicles, for our possessions, for our home, and even for our lives. None of these insurance policies however, including life insurance, can be used to help cover the final expenses of burial, and a funeral. Final expense insurance is one of the only insurance policies available that is designed especially to cover these last expenses we have after departing this life.

You may want to consider this insurance if you do not already have funds set aside to cover this expense. If you have any sort of medical condition that would cause you to be more likely in the next decade to need this type of insurance, then it is time to seriously consider a policy of this nature. Also, even if you do think that you would ever need this policy anytime soon, it is a great way to protect your loved ones after you are gone. You can rest easy knowing that your loved ones are taken care of.

Life Insurance Is Easy

Life insurance is pretty easy to understand once you get past all the insurance agent jargon and start breaking down how life insurance works.  To make it as simple as possible there are two types of life insurance; life insurance that has an investment and regular term life insurance.

Life Insurance With an Investment

Life insurance policies that have an investment attached to them are what causes all of the confusion  when people are deciding what life insurance to get.  Life insurance that has an investment attached to it comes under a ton of different names.  The two most common are whole life insurance and universal life insurance.  No matter what the name what you need to know is that these policies have a monthly premium and a piece of that premium goes into an investment account.  This account grows via interest and from the continued premiums that you pay.  It grows over time and whether you die or not you own this account.  The money in the account is called a cash value.  The downside to this type of life insurance is that it is expensive.  Not only are you paying for insurance, you are also putting money into an investment account and you are paying fees to have the insurance company manage the account for you.

Term Life Insurance

Term life insurance rates are much lower than the Life Insurance that has an investment account.  This is because it is plain and simple insurance.   You pick an amount that you want to be covered for and the number of years that you want the premiums to stay the same (usually twenty to thirty years), you pay that monthly premium and get your coverage.  The plans are so simple and so easy to administer that the insurance companies can offer them for very low prices.  This means that the term life insurance rates can be as much as ten times less expensive than the rates for whole or universal life insurance.

Of course with either type of life insurance you will get the best rates from the best life insurance companies by being in good health.  So before you apply for either of these make sure that you are at your best physical shape before they poke and prod you to determine what rate class you qualify for.

Several Ways You Can Save On Your Life Insurance Policy

Purchasing life insurance is a smart thing to do. Getting the right life insurance coverage for you will take some research, though. However, you may need some help figuring out how to get started. Check out goldsmithinsurance.com as one of our preferred insurance brokers.

Pick a company that’s not only large, but also reputable when you investigate underwriting companies when it comes to your policy for life insurance. An inexpensive policy is worthless if the company cannot provide payment when necessary.

When you’re choosing a policy, you need to make sure to calculate the coverage for both ongoing and fixed expenses. Keep in mind that life insurance funds can be used for pricey one-time expenses as well, like estate taxes or funeral costs which can add up.

In most cases, you should find other solutions to financial problems, rather than cashing out your insurance policy. There are many people today who are opting to terminate their insurance policies for cash. This creates a ‘vacuum’, sucking down all of the valuable money and more valuable time that you’ve pushed into creating this policy. If you run into financial difficulties, there are alternatives to cashing out the policy.

Name brands are not always the best option. While insurance companies may have great marketing gimmicks, you need to ask just how much these gimmicks cost, and wonder if these companies offer higher prices in order to pay for this type of marketing. Seek out a dependable company instead of the one most publicized.

If you are dubbed a high risk by insurance companies, shop around for rates. Do not let yourself be deterred by one life insurance company telling you a high price. Companies tend to negotiate differently based on many conditions. While one company may consider you high risk, another may give you a better rate.

Many life insurance policies can be used to finance a retirement. If this idea appeals to you, then read up on policies that offer a return on premiums. If you are living when your policy is expired, you will get all of your money back. Now you can take that well deserved retirement trip!

When purchasing life insurance, it’s better if you grab a policy while you’re still young. With increased age, health issues are likely to increase as well. That fact is likely to result in higher insurance costs if and when you try to purchase coverage than you might have paid when you were younger.

So, as you have seen, it is true that buying life insurance requires research, and asking lots of questions. This is also a process that requires some perseverance. By using these tips, you can find the perfect policy for you.