Life is precious to every person on earth and the most prudent way to shield your family from the financial burden of death is to get life insurance. It can pay for almost all the major disasters in an individual’s life. If the person is suffering from a chronic illness, it bears the medical expense. Life insurance money can be used in cases of a severe accident. After the death of the policyholder, the insurance pays for his funeral and other related ceremonies. Thus life insurance is a big financial assistance not only when a person is alive but also even after it.

However the extent to which a policy will be active or beneficial depends on the kind of life insurance policy taken by an individual. For instance, the term life insurance policy is all about protecting a person for a term before he dies. But if the individual dies during the policy term, the beneficiaries receive the benefits. Term life insurance is ideal for those who want that specific needs such college tuition; mortgage payments and car payments should be cared for at their death. This insurance is also favorable for the families who cannot afford to pay large monthly premiums. It is also good for senior citizens who know that they will kick the bucket soon. Many companies associate different terms and conditions with the term life insurance policy and so offer several types of it. The term life insurance an also be converted to any other form of insurance such as whole life insurance.

The people who seek to insure their entire life and are ready to pay big premiums throughout should go for a Whole Life insurance policy. This policy is good for young but not meant for the old. The whole life insurance has a distinguished “cash surrender value” feature. The cash value (composed of cash value and dividends) keeps on incrementing annually according to a specific schedule in your whole life insurance policy. Many whole life policies reward the policyholders with dividends that can augment the entire cash value.

Besides these kinds of life insurance policies are also health insurance policies. These policies are devised for those suffering with chronic illnesses particularly cancer. Such policies are difficult to acquire (for very few agencies offer them) and are usually offered at high premiums. The health insurance may pay for some of the patient’s treatments but it does not pay for everything.

Prior to purchasing a life insurance policy, a person should make a prudent assessment of his current situation and needs. Accordingly he should look up Internet, consult friends and relatives to find either a reliable insurance company or an agent. Choosing from where (insurance company and agent) and what kind of policy to adopt is a challenging task that requires lot of consideration and discussion. It is also important to compare rates from many companies to ensure that you get the most affordable rate for your particular needs.

Many life insurance companies require you to take a medical exam to qualify for coverage. It depends on the amount of life insurance you are requesting, your age, and the insurance company. A life insurance medical exam will typically mean you’ll have to give a sample of blood and urine, and an examiner will measure your height, weight, and blood pressure. If you don’t want to go through with an exam, then there are other options. There are some life insurance carriers that offer  instant issue term life insurance with no medical exam required. You answer a few simple questions to get a free quote online. If you like your rates, you can apply online and get approved for your life insurance policy in as little as 15 minutes, if you qualify.

This no exam life insurance coverage is offered through life insurers that are rated “A” (Excellent) by A.M. Best for financial strength. You can even pay your first premium online with a credit card and get your policy “In Force” today. Every policy comes with a 31 day money back guarantee, no questions asked. It is a great option for people who are afraid of needles or someone who wants coverage quickly without the hassle of a medical exam.

If you need coverage today, or just don’t want to take a medical exam or blood tests, this is the solution for you. It’s the quickest, easiest term life insurance policy available online. Compare rates now.

The first thing you need to do when you start shopping for life insurance is to figure out how much life insurance you really need. There are many ways to determine this. Here are a few:

The Rule of Thumb Method: Take 5 to 7 times your annual gross income and that would be the amount of life insurance coverage you should carry.

The Expense Calculation Method: Add up all your expected expenses should you die, including: expenses for your burial, an emergency cash fund, money to pay your current debts, mortgage, college tuition, and any replacement income needed for your family,. Now, add these all together to determine your total life insurance needs.

The Income Replacement Method: Decide how much of your current annual gross income your family would need for them to maintain their present lifestyle and standard of living. The average is 70% of your current annual income. What you want to do is purchase enough life insurance so that the proceeds, if invested at an after-tax rate of return of 8%, would generate enough income for your family.

Let’s use an example to show you how this works: If you earn $30,000, then your life insurance policy should provide $21,000 of annual income for your family. $30,000 times 70% equals $21,000 of annual income. Now, if your family invests the proceeds of your life insurance policy, they need to receive $21,000 annual income from that investment. $21,000 divided by 8% (rate of return) equals $262,500 of life insurance protection.

I would say that a combination of all three of these methods is best because everyone’s age, health status, and marital and financial situation is different. Be sure to speak with an experienced agent for more guidance on the right amount of life insurance coverage or your family. Get a free quote today to compare multiple rates from the top carriers.

Term life insurance is usually considered a short term solution (5-30 years) for one or more short term or fixed term needs like a mortgage, car loans, or college funding for your children.

Term insurance makes a lot of sense when you are young with a growing family, because the rates are low and the benefits are high.

• Term insurance is purchased for a specific number of years.
• Premiums are lower than whole life insurance, especially in the early years of the policy.
• Premiums increase with age or at renewal of your policy depending on the type of term life insurance policy you choose.
• Term insurance builds no cash value.
• Based on a study at Penn State University in 1993, less than 1% of term life policies ever pay a death benefit.   People usually outlive or discontinue their policy.
• Most term life insurance policies cannot be renewed past the age of 80.

Why Do I Need Term Life Insurance?

Term life insurance offers you a way to provide cash for your family in the event you die. The money your beneficiaries receive from your life insurance policy can be used to pay for your burial costs and final expenses. It can also be used to pay off credit card debt, a mortgage or rent and other living expenses for your family. Life insurance benefits can also be used to pay for college tuition, provide money for retirement, provide cash to pay your estate taxes, or provide a stream of income that can help your family maintain their lifestyle. Also, the death benefit paid from a life insurance policy is usually income tax-free.

If you are thinking about getting some term life insurance coverage for your family, be sure to speak with an experienced agent about your situation. Get a free quote today to compare multiple rates from the nation’s top carriers.

If you are in the process of buying life insurance, then you’ve probably realized that you have to endure a medical exam so the carrier can determine what rate you’ll pay. Good results can mean hundreds or thousands of dollars in savings over the lifetime of your policy. Many people think that there is nothing they can do to prepare for the life insurance physical, but that’s not true. No, you can’t lose 20 pounds overnight and you can’t get rid of nicotine in your system, but there are a few steps you can take that can make a difference in your blood pressure, cholesterol, and other readings. Here are some easy tips to get the best results possible from your life insurance physical.

The night before your exam:

• Have a light, low-fat dinner and drink plenty of water
• Go to sleep early and get plenty of rest

The morning of the exam:

• Schedule the exam early enough in the morning before you start feeling any pressure from the events of the day. This will help keep your blood pressure down.
• Drink a lot of water and urinate at least once before you give a urine sample to the examiner.

Here are things that you SHOULD NOT do:

• Eat a high fat and high calorie meal the night before
• Eat anything before the exam
• Drink anything before the exam
• Drink alcohol the night before the exam
• Try not to use pain relievers before the exam because they can temporarily elevate liver enzymes

The goal is not to trick the life insurance carrier, because that’s not really possible. But you do want to get the best results you can. It can mean the difference between a Standard rating and a Preferred rating and that means big savings for you. Have you shopped around for rates? If you haven’t compared multiple rates for your situation, then you might end up paying too much for your life insurance policy. Compare rates from the nation’s top carriers today.

The premium you pay for life insurance is absolutely unique to you. The reason for that is because there are so many factors that play a part of how a carrier determines your life insurance premium. Here’s what affects how much you pay for life insurance.

Age. This is a no brainer- the older you are, the more you pay. That’s why it’s important to lock in a life insurance rate today because as each year passes by, the rate only goes up, up, and up.

Sex. Men pay more for life insurance than women. This is based on actuarial data, which shows women live longer than men. For example, a healthy non-smoking male will pay about $459.00 per year for a $100,000 20 year term policy, while a woman will pay $330.00 per year.

Height and Weight. All life insurance carriers have their own underwriting standards for height and weight. These height and weight tables will put you into a certain health class such as Standard, Preferred, or Preferred Plus, and this plays a big role in what your premium will be. If you are overweight or obese, then you are considered higher risk for heart disease, high cholesterol, and other health issues, so your rate will be higher. Many carriers will deny you for life insurance if you are over the maximum weight allowed according to their underwriting standards.

Smoking Status. If you smoke, you’ll pay more for life insurance. The rates can be as much as 2 or 3 times more. For example, a 52 year old non-smoking male will pay $352.00 per year for a $100,000 20 year term policy. If he smokers he’ll pay $820.00 per year. Big difference!

Blood Pressure and Cholesterol. During the life insurance physical exam, your blood pressure will be checked and your blood will be drawn to check your cholesterol levels. Blood pressure above 140 over 90 is typically considered to be low level hypertension and cholesterol levels above 200 will usually affect your insurance rate. All carriers have their own underwriting guidelines for blood pressure and cholesterol so it’s best to speak with an experienced agent, who’ll be able to guide you toward the carrier who has the most favorable rates for your blood pressure and cholesterol levels.

Health History. This is a big area that can encompass many things. Life insurance carriers want to know about health problems you’ve had, if any. This can include a heart attack, cancer, diabetes, stroke, or just about anything else that you’ve been to a doctor for. This also includes HIV and AIDS. Many people worry about telling their agent about their health issues, but it is always in your best interest to be upfront. Life insurance carriers will check your medical records and prescription history so it is highly likely that they will find out anyway, and you’ll be denied for life insurance if you aren’t upfront. When you disclose everything to your agent, you allow him or her to help you find the best company for your coverage. For example, if you have diabetes, many companies will deny you outright. But there are carriers who will give you as high as a standard rating, depending on your A1C level.

Family Health History. Because health problems often run in the family, life insurance carriers will often ask if your parents or siblings have had heart disease or cancer.

Driving History. Speeding tickets and a DUI can also affect your life insurance rate. Each carrier has their own guideline for what is acceptable.

Occupation and Hobbies. Life insurance carriers view certain occupations and hobbies as high risk, which means you’ll likely pay a higher life insurance premium. Some examples are pilots, rock climbers, sky divers, and scuba divers.

Because there are so many factors that affect your life insurance premium, the only way to get an accurate quote is to speak to an experienced agent. Tell them about any issues you might have and they should be able to guide you in the right direction. Get a free quote today.