Do you know the difference between whole life insurance and term life insurance? How about the reason that life insurance companies need a medical exam from you before offering a policy? These are important questions to answer if you’re considering buying life insurance. The answers: 1.) Term life ends after a period of time, while whole life ends when you die. 2.) The medical exam helps the insurer assess your risk level.
Your lifestyle and age also add to your risk level. The older you are, unfortunately, the riskier you are to insure. However, a lifestyle with a lot of high-risk decisions in it (decisions that put your health in jeopardy) will make your premium go up, too, just like age will. Your best bet is to get life insurance as soon as possible and lead a low-risk lifestyle. Decrease the odds of a high premium payment, and decrease the odds something will happen to you. This is a win-win, no matter how you look at it.
By the way, a whole life insurance policy builds cash value, which your beneficiaries get when it matures. If you’re curious about a company’s stability, look at the A.M. Best Stability Rankings, instead of stock prices or other information. If you thought you were uninsurable, that’s not true. A guaranteed issue policy will get you the insurance you need. You hope nothing will happen to you, but you should learn about life insurance just in case. Take this simple and quick Health IQ quiz about life insurance to test your knowledge.
You can also use this life insurance calculator from Simply Insurance to get an idea of how much coverage you may need!
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