May 26, 2021

Answers to Your Top 3 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 comes with losing someone. It can help cover funeral costs or pay off debts that become unmanageable when your income is no longer there to pay the mortgage/rent, make car payments, or buy groceries.

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

Many employers offer life insurance policies for their employees. This is a fantastic benefit and helps you feel a little better about your finances if something were to happen. The drawback to this is that if you change jobs, the benefits typically will not go with you.

Additionally, the benefit received is likely not 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.

Young man researching questions about life insuranceCan 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 an ideal solution if you’re living on a tight budget, and it is meant to cover you for a specific period of time. If you’ve just bought a home, been recently married, or added a bundle of joy to your family, Term Life Insurance allows you to provide for your loved ones.

It offers low premiums which remain level for the initial term period. For example, a healthy non-smoker 35-year old male might pay just $10.26 per month for a $100,000 Term Life policy with a 15-year term—get your custom rate estimate here. It is important to note that after the 15, 20, or 30-year initial term period, your rates will increase every year if you choose to continue your 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 usually a bit more expensive but provide permanent coverage and a financial safety net for you and your family. Unlike Term Life Insurance, Whole Life has a cash value and is designed to last your entire lifetime. BetterLife’s Whole Life 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.

Couple looking at their finances togetherSit 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 whether you have the right plan in place for your life.

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