August 7, 2024

Answers to 3 Common Questions About Life Insurance

We know life insurance can be confusing. In fact, our BetterLife insurance agents get all kinds of questions on a daily basis about the ins and outs of financial protection. Keep reading to get some of your most commonly asked questions, answered!

Why do I need life insurance?

Life insurance is a way to provide financial support to your loved ones to help with the economic strain that can come with losing someone. It can help cover funeral costs mortgage/rent, car payments, bills, or other day-to-day life costs that may become difficult after loss.

I already have life insurance through my employer, why would I need more?

Many employers offer life insurance policies for their employees. This can be a great benefit to help provide financial support to your loved ones if something were to happen to you. The drawback to this is that if you change jobs, the benefits may not transfer with you.

Additionally, the benefit received may not be enough to cover expenses that your family could face if they were to lose you. Your family would have to deal with the loss of a loved one and the financial burden of paying for a mortgage, car payments, and other debts as well.

Can I afford life insurance?

Life insurance comes with a cost, but there are many options available, so you will most likely be able to find something that works within your budget.

Term Life Insurance is designed to cover you for a specific period of time, so it’s more affordable than whole life insurance. If you’ve had recent major life changes – like purchasing a home, getting married, or adding a bundle of joy to your family – purchasing a term life policy can be a good option to help provide for your loved ones should something happen to you.

It offers premiums which remain level for the initial term period. For example, a healthy non-smoker 35-year-old male might pay just $9.27 per month for a $100,000 Term Life policy with a 10-year term. It is important to note that after the 10, 20, or 30-year initial term period, your rates will increase every year if you choose to continue your term coverage. This plan allows members to guarantee their insurability and move to permanent coverage when they’re ready—you can convert some or all of your Term Life policy after the first year and until the end of the initial term (or until you turn age 70, whichever happens first).

Whole Life Insurance policies are more expensive than term life but provide permanent coverage and a financial safety net for you and your family. Unlike Term Life Insurance, Whole Life has accumulates a cash value and is designed to last your entire lifetime. BetterLife’s Whole Life Insurance offers level premiums, which are established based on your age when you purchase the policy, and they are guaranteed not to increase, regardless of changes in health or age.

Sit down and get a solid handle on your monthly finances before you purchase a policy. While you obviously want to provide financial stability for your loved ones, you also need to make sure you can afford your policy in the long run.

BetterLife offers Term Life, Whole Life, and Universal Life Insurance. Chat with one of our agents to discuss which insurance option can work for your unique needs.

If you have any other questions about life insurance and annuities, send us a message! We’re here for you.