Life insurance is meant to give someone financial assistance in the event of someone’s death. This person is called a “beneficiary,” and he or she is chosen by the person listed on the policy. Many factors determine what type of coverage you may need, and the same is true with the amount as well. Be sure to speak to an agent to get some professional advice on what type of life insurance you need as well as on the amount.
Types of Life Insurance
There are two types of life insurance policies, and each one has its advantages and disadvantages. You should choose one that will best suit your needs, and it should fall within your budget. The two types of life insurance policies are:
- Term Life Insurance – Covers you for a certain number of years, and it will only pay the death benefit if it happens within that term. While the premiums for term life insurance can be lower, they don’t build up any cash value over time. Also, you may not be able to renew them at the end of the term.
- Whole Life Insurance – While their premiums can be higher, whole life policies will give you lifetime protection. And in some cases, they can build up cash value while the coverage is in force.
If you want to find the best policy for your specific needs, please be sure to contact Premier Group Insurance in Lakewood, CO today!
What Determines Life Insurance Premiums
Many factors can determine the cost of life insurance, and it’s not just about the amount or type of policy that’s being written. Your age is an important factor, and your health can play a significant role in how much you will have to pay or whether you can get covered at all. If you have a pre-existing condition or any chronic illness (like diabetes or high blood pressure), you might not be able to get a life insurance policy. And the same can be true if you participate in any dangerous activities (such as skydiving or rock climbing).
Smoking or excessive drinking will raise your premiums, especially if you were engaged in these activities in the past five years. You should talk to an insurance agent so you can find a policy that’s best suited for your specific situation, and Premier Group Insurance has a team of people who can help you. If you live in Colorado Springs, Ft. Collins, or Lakewood, CO, and want to get an affordable life insurance policy, be sure to contact our office today!