In What Type of Insurance Do I Need

Having term life insurance is important for your, and your family’s peace of mind. Ensuring they are taken care of in the event something happens to you will make you all feel more at ease.

If you’re purchasing your first life insurance policy, or you haven’t examined your current policy in quite some time, you may have a few questions about term life insurance. You may even be nervous to ask some of them. We’ve compiled a list of some of the most common questions about life insurance to save you some time in your research.


How do insurance companies determine my premium?

Did you know your monthly premium can be based on up to 100 different factors?  Factors like your age, general health status, driving record, family history, build and any health issues you may have and whether or not you participate in any high-risk activities can all have an effect on your monthly premium. An easy way to keep your life insurance premium low is to maintain a healthy lifestyle.  You can click here to see a general guideline for what it may take to qualify for the different premium classifications.


Will I ever need to change my insurance coverage?

A good rule of thumb is that you will need to update your life insurance coverage when you go through a major life event or change. Purchasing a home, getting married, getting a divorce, having a child—these are all things that you will need to protect in the event of your untimely death.  You can either add a new policy to the coverage currently in force or consolidate to one new policy for the increased amount and drop the current policy in force.  We suggest pricing it both ways to determine which makes the most sense for your situation.


How much life insurance do I need?

Knowing how much term life insurance to purchase is not one-size-fits-all. Life insurance policies are meant to fit you and your specific needs. If you are married and live in a rented apartment with your spouse, your policy will look a lot different than if you are married with children you will one day put through college, and you own your home. A general guideline to get started is to have approximately 10x your annual income in life insurance but here’s a link to our insurance needs calculator to help you with these calculations.

Am I eligible for insurance if I have a pre-existing medical condition?

Having a pre-existing medical condition potentially makes it more expensive than if you didn’t have that condition, but all too often it is not impossible to obtain a new life insurance policy.  We will evaluate the specific health history you may have and then match you with the company that will provide the desired coverage at the least expensive cost.  If it’s out there, we will find it!!  That being said, unfortunately, there are some rare cases where we are unable to provide the needed coverage due to a specific health issue.   In those cases, we suggest obtaining group life insurance coverage through your employer that does not require evidence of insurability or mortgage life insurance through your mortgage lender (if you have a mortgage) that also does not require any evidence of insurability.

Reach out to the Low Cost Life Insurance Team

Purchasing, or changing, your insurance policy can be intimidating, which is why Stuart Woodbury and the team at Low Cost Life Insurance work hard to make it as easy as possible for you. If you have questions about a policy or if you’d like to begin discussing your insurance needs, please call at 1-877-794-TERM (8376) or visit our website. We look forward to speaking with you soon.

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