Let's face it, you can not expect to live a peaceful life if you do not have your life insurance business in order. A part of living a peaceful life style is being responsible. When you are "Responsible" then you can rest within yourself because you know that you are not leaving any burdens on anyone else. Having Life Insurance is something that each and everyone needs. Most people do not like to talk about "death" and they get uneasy when the subject matter is presented to them but death is as much a reality as life.
I know so many people who have passed away and they left the responsibility of their burial to someone. When you have life insurance not only can you live your life with a sense of inner peace you can also pass on the peace to your loved ones because they will be able to bury you without worrying how they are going to be able to afford to bury you or how they are going to be able to afford to pay the bills that you left behind
What is Life Insurance?
My sister called me the other day and she said to me that our grandfather was looking for the phone number to his Life Insurance Company. It startled me because the first thing that I thought about was my grandfather was preparing for his death.
My grandfather, who is 87, has out lived many of his friends and family members but it was the recent passing of his dear friend that pushed him to get his affairs in order. When his friend passed away he did not have a life insurance policy and it took over a week before his family and friends were able to gather enough money to give him a decent burial.
- Life Insurance is insurance that you will have enough money to have a decent burial and pay off of your debts.
Why Should You Have Life Insurance?
When I asked my grandfather why it was so important to have life insurance, he told me that he has always tried to live his life as a responsible person, he has always taken care of his family and he always paid his bills on time. He went on to say that you may not always know when it is your time to leave this world but you can be prepared so that you do not have to leave your family members with the burden of paying for your burial or struggling to pay your bills that you are leaving behind.
- You should have life insurance so that your family will be prepared financially when they lose the support that was provided for them by you.
There are two major types of life insurance policies and they are: 1) Term Life Insurance Policy and 2) Whole Life Insurance Policy
- Term Life Insurance: When you purchase a term life insurance policy, you are agreeing to be covered for a period of 3 to 30 years. A term life insurance policy will pay the beneficiary only if the loss occurs during the time that the benefactor is insured. If you have agreed to pay for 3 or 30 years, when the insured period is over, the policy is terminated regardless of how much money you have contributed to your policy.
- Whole Life Insurance: If you decide to purchase a whole life insurance policy then you will be covered as long as you pay your premiums, which can be your entire life time. Whole life insurance policies may be more expensive than term life insurance policies.
What Determines Your Life Insurance Quote?
In order to purchase an affordable life insurance policy for yourself or for your family members you are going to have to do your research and make sure that you are purchasing the right policy for your needs and that you are getting the right company to meet your needs.
6 Factors That Determine Your Life Insurance Quote
1. The type of life insurance policy that you want to purchase
2. The amount of coverage you want with your policy
3. The likelihood of having the insurance situation while the policy is enforced
4. The agent's commission
5. The overall insurance quote in your area
6. Your risk category
How Does Your Risk Factor Determine Your Life Insurance Quote?
The risk category that you fall into determines if you are going to get the most competitive life insurance quote from your life insurance company.
4 Types of Risk Categories
- Preferred Risk Category: If you fall in the preferred risk category then you are a person who is healthy, does not drink, smoke or work on a hazardous job. Your insurance company does not considered you to be a risk factor and you will get more competitive quotes verses if you fall in one of the other groups.
- Standard Risk Category: If you fall in the standard risk category that means that you are a person whose risk factor is average.
- Substandard Risk Category: If you fit in the substandard risk category then the insurance company considers you to be a person who is above average risk but still insurable.
- Uninsurable Risk Category: The insurance company may consider you to be a person who is uninsurable if at the time that your insurance policy is active, you have a very high risk of death.