Purchasing life insurance seems like such an adult decision. But it can actually be an easy way to provide financial protection for your family. You can even apply for insurance online in minutes now, with partners like Bestow.*
Let’s start with the basics.
What is life insurance, anyway?
A life insurance policy can provide a financial safety net for your dependents or loan cosigners.
Who are dependents? Dependents are anyone that depends on you financially (your partner, kids, an elderly parent, younger sibling). A life insurance policy can help pay the bills if anything should happen to you.
What types of life insurance are there?
There are a few different types of life insurance, including term, universal and whole life, and variable life insurance. Each policy differs in regards to how long it covers you for (your entire life vs. a set period of time) or potential financial benefits in addition to your monthly premium. But all provide coverage in the event that something happens to you.
What is term life insurance, anyway?
It’s called term life insurance because it insures you over a particular period of time, and typically pays out upon your death.
Term life insurance may be a good option compared to whole life for those who are looking for an affordable way to obtain a policy that covers you for a set amount of time. Generally, this can be 10 years, 20 years, or more, depending on what you choose.
I’m young and healthy. Do I really need life insurance?
If you’ve got dependents or loan cosigners, life insurance can be a good idea.
Here’s the positive news: The younger (and/or healthier) you are, the more affordable your life insurance is likely to be. Plus, you can lock in a good rate that will stay the same for the entire term, or time period, of your policy.
What can my dependents use the money for?
There are no restrictions on what the money can be used for. Your family can use the proceeds to cover funeral costs, mortgage payments, child care, and day-to-day living expenses. It can also help you settle unpaid medical bills or any tax debt that would ultimately be the responsibility of your co-signer.
Is it really expensive?
People generally tend to overestimate the cost of term life insurance. For example, a healthy 35-year-old could get $500,000 of coverage for 10 years for $26 a month from Bestow.
I like it, but I hate paperwork
You can get a term life insurance quote online in seconds and apply in minutes for an instant decision.
Ready to get covered? Click here to learn more from our partner Bestow.