What’s is the best life insurance policy for me?

I’m 20 years old and I’m married with 2 children.

My husband and I are wanting to buy life insurance but our research is confusing. I need the basics and the best option for my family.

The best option for life insurance for your family depends on your goals and what you want your life insurance policies to accomplish.

Many young families choose 20 or 30 year level term life insurance policies for the mother and father because it offers the most life insurance protection at the lowest cost for your family.

By locking-in low rates on a 30 year term life insurance plan you can provide guaranteed protection for your children until they are grown and on there own.

Level term life insurance provides rates and coverage that remain the same each year for the entire term of your life insurance plan.

You can compare term life insurance quotes online and find the lowest rates from over 70 leading life insurers in just minutes.

In addition, there are term life insurance no exam plans that offer you up to 0,000 of life insurance without any physical examination, just a few health questions.

NEW! Here’s How to Buy up to 0,000 of Term Life
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Disclosure: Compensated Affiliate

What is a child rider for life insurance?

A child rider is a type of additional coverage added to a parent’s life insurance policy to provide life insurance protection for the parent’s child.

For instance, a father may buy a life insurance policy for 0,000 of life insurance coverage, and pay additional premium to add a child life insurance rider to his policy providing ,000 of life insurance protection on his son.

In addition, there are other options for providing life insurance for your child, such as, a child life insurance policy.

Child life insurance plans may build cash value over time, and provide guaranteed life insurance protection for your children when they become adults.

Here’s how to learn more about a child life insurance policy rider and how it works.

Or, you could review the benefits of child life insurance plans and request a free life insurance for child quote online and find out how easy and affordable it can be to buy life insurance for your children.

NEW! Here’s How to Buy up to 0,000 of Term Life
Insurance without any Medical Exam,
Just a Few Health Questions.



Disclosure: Compensated Affiliate

This is a question we are asked quite often, typically when we are doing  annual policy reviews with our clients.  Unfortunately, the answer is always “no, the term is set when the policy is issued, after which time it cannot be extended.”

When discussing a new term life insurance policy with a client, especially when they have received life insurance quotes on our website, we always show the premiums for various term lengths, from 10 to 30 years.  In most cases, unless there is a specific need for a short term period (e.g. 10 years to cover a short term loan), we will recommend the longest term available (30 years for most age groups).

We realize there are budgetary concerns, especially in the current economic climates, but we will usually show a client that it will probably be less expensive in the long run to go with a longer term.  Additionally, the rates can be significantly higher after a shorter term if the client’s health class changes due to deteriorated health.

My advice now is, as it has always been, if you are purchasing term life insurance, purchase a policy with the longest term available for your age.

I sometimes have clients who are looking to pay all the premiums of a cash-value type policy (whole life, universal life, etc.) up front in a single lump-sum premium.  While I don’t always agree with this strategy, in some cases, I don’t believe it’s a bad idea.

One of the benefits of a cash-value policy is the favorable tax treatment given to cash withdrawals and policy loans.  In many cases, one can access the cash portion of the policy on a tax-free basis (please ask your tax professional for the specific details).  However, if the premium is paid too quickly (as in one lump sum), these advantages disappear.

Changes to the Tax Laws in 1988 resulted in insurance policies that were funded too quickly (generally one lump-sum payment) being classified as modified endowment contracts (MECs), eliminating any of the tax advantages of a cash-value policy.

I have recently recommend a few clients to purchase universal life insurance policies with Lapse Protection (or secondary guarantee) with a single premium.  As we typically don’t recommend this type of policy for cash-value growth, turning this policy into a modified endowment contract will not have a negative effect on the client.  There is one positive effect, however.  As one can lose the lapse protection if the premiums aren’t paid on time, paying with a single premium will essentially guarantee that the lapse protection will stay in force, as will the guaranteed death benefit of the policy.

If  you are looking into one of these policies, find out how much the single premium would be.  It might just make sense for you.