A life insurance policy helps your family in the event of your passing. Your beneficiaries will receive money to use as they see fit in a difficult time.
When to get life insurance?
Many people get a life insurance policy when they experience major life events, for example
- If you were just married
- You bought a new home
- You’re expecting a new baby
What are the 3 types of life insurance?
Life insurance options at a glance
Term life insurance
Works for temporary needs, your beneficiaries receive a death benefit for the term you choose.
Whole life insurance
Gives you level premiums. It could also build cash value which you could access through loans.
Guaranteed acceptance whole life insurance
Designed to give you lifetime coverage regardless of health.
What’s term life insurance?
Term life insurance could help protect your loved ones financially if you pass away. This designed to be affordable coverage is set for a specified time, generally 10 to 30 years. Term life can help provide peace of mind for your family’s financial stability during critical periods of your life, like while raising children or paying a mortgage.
Term life pays if you pass away during the policy term. This payment is known as a death benefit and is paid to your beneficiaries.
Who should consider term life insurance?
Term life insurance may be a good fit if you want coverage for a set period of time to help protect your loved ones if you were to pass away. It’s ideal for those with specific financial obligations who want a more affordable and straightforward coverage for a defined length of time.
People looking for term life insurance could include
- Young families
- Homeowners with mortgages
- People with outstanding debts
Term life insurance is typically less expensive than a whole life insurance policy.
What factors determine the cost of a term life insurance policy?
The cost of term life insurance is based on many factors like
- Age of the insured: Younger policyholders generally pay less
- Health conditions: Healthier people tend to have lower costs
- Coverage amounts: Higher benefit amounts can result in higher prices
- Term length: Longer policy terms may cost more
- Lifestyle choices: Habits like smoking, can raise premiums
Is a medical exam required to purchase a term life insurance policy?
Requirements vary by company and policy. At Liberty Mutual, we’ve partnered with TruStageTM, to help make getting life insurance easy!
TruStage offers
- Fast quotes
- Instant decisions
- Rates designed to be affordable
- No requirements for medical exams or intrusive tests (Simplified Issue only)
See how simple life insurance could be by starting your life insurance quote today!
What’s whole life insurance?
Whole life insurance is a type of “permanent” life insurance designed to provide lifelong coverage. Benefits can include an income tax-free death benefit, paid upon your passing, and a cash value component that grows over time.
How do I compare whole life vs. term life?
In general, there’s a few main differences between whole life insurance and term life insurance.
- Premiums: Whole life offers fixed premiums for as long as you pay your premium. Term life on the other hand, has premiums that could go up over time.
- Build cash value: Whole life typically offers the ability for you to build cash value you can potentially borrow against or use for other financial needs. Term life doesn’t.
- Timeframe for coverage: Whole life can cover you for your entire life and give you the potential to access funds during your lifetime making it a more comprehensive solution. Whereas term life offers coverage for a specific time frame and no borrowing options.
Who should consider whole life insurance?
Whole life insurance is typically a good fit for you if you’re looking for lifelong coverage and want to build cash value over time.
Benefits whole life insurance can include
- Financial assistance for loved ones
- Help planning for estate taxes or legacy planning
- Access to accumulated cash value for possible future needs like education expenses or supplemental retirement income
Whole life insurance is also designed to provide you fixed costs and help ensure you’re covered for your entire lifetime.
What factors determine the cost of whole life insurance?
The cost of whole life insurance is determined by several factors like
- Age of the insured: Younger policyholders generally pay less
- Health conditions: Healthier people tend to have lower costs
- Coverage amounts: Higher benefit amounts can result in higher prices
- Cash value growth: Policies with faster cash value accumulation may cost more
- Dividend option: Receiving dividends can affect costs
Is a medical exam required to purchase a whole life insurance policy?
Requirements vary by company and policy. At Liberty Mutual, we’ve partnered with TruStage™, to help make getting life insurance simple! It may be possible to purchase TruStage™ Advantage Whole Life Insurance, underwritten by MEMBERS Life Insurance Company, without a lengthy application process or medical exam.