What is life insurance?
Life insurance is important, but it's also complex. So, many of us don't understand it. What exactly is life insurance?Compare quotes today
- What is remaining on your mortgage?
- What other loans and outstanding credit do you have?
- What expenses will have to be taken care of, like burial and uninsured medical costs?
- What percentage of your income will your beneficiaries need?
- For how many years will your survivors need financial support?
- Do you need to include specific funds, like an emergency fund, a child-care fund, or an education fund?
- What other assets—stocks, real estate, savings—do you have that could be deducted from the amount you need?
- Age:The older you are, the more likely it is that you’ll pass away within your term.
- Gender:Men are more likely to be involved in accidents and tend to live riskier lifestyles, so they’re more expensive to insure.
- Coverage amount:The more coverage you want, the more you’ll pay.
- Smoking:Smokers pay significantly higher rates. Most insurance companies will define you as a smoker if you’ve used tobacco, nicotine replacement products, or marijuana within the last 12 months.
- Health:People who are overweight and people who regularly drink alcohol typically pay more for life insurance.
- Illness:Some chronic illnesses will make it more difficult to get life insurance, and some may prevent you from getting coverage altogether. Your mental health will also be a factor.
- Family History:If you’re genetically predisposed to certain conditions, you could pay more for life insurance.
- Job:Some occupations are considered more dangerous than others and can impact how much you pay for insurance.
- Chronic or terminal illnesses, such as diabetes, multiple sclerosis, HIV/AIDS, cancer, heart disease, stroke, or others
- Mental illness, including severe depression and addiction
- Older than the maximum enrolment age
- Participating in dangerous activities
- Convicted of impaired driving
- Non-payment of premiums
- Providing inaccurate information on your application
- If you die due to your own actions, such as suicide or driving impaired by drugs or alcohol
- If you die while doing a dangerous activity, like skydiving or participating in a riot
- Direct underwriters, who work for specific insurance companies.
- Insurance agents, who are independent but only sell the products of one insurance company.
- Insurance brokers, who sell the products of multiple insurance companies.
- Some forms of life insurance are available online.
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If you got this far, you know one thing - life insurance is complex! To get the right policy, you need to do a lot of comparison work. Get multiple quotes today to save yourself time and effort.