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Find the Right Life Insurance Policy

  
  
  
  

Picking the Right Life Insurance Policy

finding the right life insurance policy

You’ve probably already determined that life insurance is an important part of any financial plan and that while everyone should have at least a small policy, for those with dependents it’s even more important. But how do you know which is the right type of policy?

Today we’re sharing three notable tips on how to choose the right life insurance policy that fits your needs.

 

1. Why Do You Need It?

Take the time to consider the reasons you need life insurance. Is it to act as income replacement for your dependents so they don’t struggle financially once you pass away? Or is it to cover a certain debt like a mortgage payment or credit card debt? Most people purchase life insurance as income replacement, to cover debts, everyday living expenses, future expenses like college education or death taxes. Knowing why you need life insurance can help answer many other questions about which type is the best for you.

 

2. How Long Do You Need it For? 

The biggest difference between the three main types of life insurance, term and whole life insurance, is the amount of time the policy is in force for. Term life insurance is a type of life insurance policy that only lasts for a certain length of time, anywhere from one year to as many as thirty. Whole life insurance lasts for the entire lifetime of the policyholder, even if they live past 100. Whole life insurance, also known as permanent life insurance, also comes along with a savings component.

The third major type of life insurance, Universal Life insurance, is similar to whole life because it is a permanent policy that lasts for the entire lifetime of the policyholder. However, there are some differences between Whole and Universal Life.

In order to determine which type of policy is best for you, it’s important to consider how long you need coverage to be in force. If you’re purchasing life insurance to cover a large payment like a mortgage, you can buy term life insurance for the term length of the mortgage.

How long you need the life insurance policy for is one of the biggest differentiators between term life and whole life insurance. Term life insurance lasts for a specific term length, anywhere from one year to twenty or thirty. Whole life insurance lasts for the entire lifetime of the policyholder.

 

 3. Do You Want a Savings Component?

If you have decided to go with Whole life insurance, you are then offered a savings component. A portion of the premiums goes into an account and grows tax-deferred over time. Once you’ve acquired a certain amount of cash value, you can borrow from the account.

Term life insurance does not have a savings component. You simply pay your premiums for the term length and if you pass away while the policy is in force, your beneficiary receives the death benefit.

Knowing the answers to these three questions, why you need life insurance, how long you need it for and if you want a savings component, can help you make the right life insurance choice for your needs.

Work closely with your life insurance agent to determine which type of life insurance is the best for you. Compare life insurance quotes, ask questions and do your research.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Top Tips to Live Healthy This Summer

  
  
  
  

Tips for Summer HealthThe days are longer, weather is nicer and the sun is shining. That’s right, summer is here! We all know that staying healthy can help reduce life insurance rates, so we’ve got some summer steps to healthy living. 

Shake up Your Diet

The summer months mean more vegetables and fruits are in season, so you can save money and introduce healthier food into your diet. Take a trip to your local farmer’s market and sample some locally-grown fruits and veggies. 

Try planting your own garden. Keeping up with watering and weeding is a great way to be outdoors and stay active and as an added bonus, you get healthy food right in your own backyard. There’s nothing like a fresh cucumber or tomato! 

Get Active Outdoors 

For us here at Efinancial, warmer weather means one thing: getting outside! Skip the gym and take your workouts outdoors. Go for a walk around the neighborhood, play tag with your kids or go for a bike ride at a local park with friends. 

Outdoor activities don’t have to be sports, either. Look for summer activities like festivals you can attend or cheer on your team at a baseball game. Just being outdoors in the sun is sure to brighten your mood. 

Take Care of your Body

While outside enjoying the warm weather, make sure you are staying protected from the sun and heat. Drink plenty of water to stay hydrated and wear sunscreen, a hat and sunglasses to protect your skin and eyes from the sun. Even though the sun still shining later in the night, try to keep the same sleeping schedule and get plenty of rest. 

Vacation! 

You’ve worked hard all year to earn those vacation days and time off work, so use them! The summer is a great time to take a family vacation or a trip with friends. Vacations have more health benefits than you realize, like reducing stress levels, and improving job performance upon your return.  Take a vacation this summer and watch the stress of everyday life melt away. 

What are your plans for this summer? Share below!

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Is Life Insurance Necessary for College Students?

  
  
  
  

Is Life Insurance Necessary for College Students? You may already know that life insurance is less expensive when you’re young and in good health, but does it make sense for your college student to have a life insurance policy? You may be surprised to learn that it may. 

The most important factor in  deciding whether or not a college student needs life insurance is to determine how they are paying for college. If your child will graduate with a degree and a large amount of student loans, it may make sense to secure a term life insurance policy to cover those long-term debts. 

Keep in mind, government-backed student loans are forgiven if a student dies, but only one in six private lenders automatically forgive a loan when a student dies. It’s important to read the fine print on student loan documents to determine who, if anyone, will be responsible for repaying the loan if your child were to pass away unexpectedly. 

If you borrowed against your home to pay for your child’s college education, you should consider purchasing a life insurance policy to cover that loan. Be sure to also think about credit card debt. If you have co-signed for a credit card for your child, you could be on the hook to pay any debt they may incur on the card. 

Funeral Expenses and Medical Bills 

No matter what age someone passes away at, even if they are young college student, they will incur final expenses for a funeral service. A college student may even have a large amount of medical bills. 

The bright side is that purchasing a life insurance policy for someone so young should make it fairly inexpensive.


To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Common Life Insurance Mistakes

  
  
  
  

Common Life Insurance Mistakes Mistakes happen to everyone, so it’s no surprise that sometimes consumers make mistakes when purchasing life insurance. Some life insurance mistakes are more common than others, so today we’ll share some in hopes that you can avoid them! 

Not Purchasing It 

Okay, this one is pretty obvious, but the biggest mistake you can make when it comes to life insurance is not purchasing it at all. Life insurance is about protecting your loved ones and providing for them even after you’ve passed away, so not purchasing it can be a pretty big mistake. 

You may be unsure on what you want or need when it comes to life insurance, but if you have people in your life who will struggle financially without you around, it’s imperative to purchase it. Don’t let the questions you have about life insurance hold you back from purchasing it. Meet with an agent to ask questions and find what life insurance policy is right for you. A great place to get the answers to your questions now is our FAQ section… 

Don’t Wait 

Life insurance rates are less expensive the younger you are and better health you are in, so don’t put off purchasing. Life insurance rates are based partly on age, because the older you are, the closer you are to death in theory. By purchasing life insurance when you’re young and in good health, you can secure  lower premiums. 

Purchasing Too Little 

Don’t rely on just the life insurance policy you are enrolled in through your employer or the coverage you purchased when you were in your 20s. Having too little life insurance is a common mistake and it can leave your loved ones with too little money to live off of after you pass away. 

With every big life event like marriage, birth of children, buying and selling property,  or even promotions and raises, review your life insurance policy to make sure the death benefit still covers all of your living expenses. 

Lying on your Application 

It’s important to be honest on your life insurance application so you can get accurate premium rates. Be sure to disclose all medical conditions and drug or tobacco use. The life insurance medical exam or medical records could reveal any lies you told on your life insurance application and the life insurance company could deny you coverage or even deny your claim in the event of dishonesty.

 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Personal Finance Rules to Live By

  
  
  
  

Personal Finance Rules to Live By Here at Efinancial, we stress that life insurance should be an important part of any financial plan. But that’s not the only personal finance rule we live by. Today, we’ll share a few more. 

Save, Save, Save 

Saving for the future is one of the most important things you can do with your money. Financial experts say you should be saving at least 10% of each paycheck, but if you can save more, do it. It’s especially important to save as much as possible when you are young. The sooner you save, the more that money can grow over time. 

You should aim to have at least three to six months’ worth of living expenses set aside in an “emergency account.” This account can help with unexpected expenses like home repair or car trouble. It can also help and act as a financial security blanket if you were to unexpectedly lose your job. 

Purchase Life Insurance 

A good personal financial plan is all about saving and preparing for the future, so it’s natural that the plan should include life insurance. Take the time to calculate how much coverage you need by factoring in: 

  • Your income
  • Major debt like a mortgage payment
  • Credit card debt
  • Everyday living expenses

Future expenses like college education

  • A good rule of thumb is to have ten times your income and enough to cover outstanding debts. 

Don’t Borrow Too Much 

When it comes to big purchases like a home or student loans, don’t borrow more than you can afford. For a student loan, try not to take out more than you will make in your first year’s salary. A general rule for a home loan is that it should not be more than two times your take home household income. 

Credit card debt can be hard to avoid, but if you have more than one credit card to make payments to, you should pay off the highest interest rate card first. 

What are the personal finance rules you live by? Post below and share! 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Young Professionals: Do You Need Life Insurance?

  
  
  
  

Young Professionals: Do You Need Life Insurance? You’re just starting out in your career and have finally secured a job, the first step in your career path. As a young professional, purchasing life insurance is probably not on your list of to-dos. But it should be, and here are reasons why. 

To determine whether or not it’s wise to purchase life insurance, ask yourself if anyone in your life will be affected financially by your death. If the answer is yes, you should absolutely have a life insurance policy. Life insurance provides a financial safety net for your loved ones after you pass away. 

Typically, the biggest reason to purchase life insurance is to provide financial assistance for dependents like a spouse, children or elderly parents. As a young professional, you may not have dependents just yet, but you may have a large amount of student loans, other debt or even a mortgage payment. You may leave behind a large amount of medical bills and everyone has funeral expenses. The death benefit of a life insurance policy can cover all of those expenses so your loved ones don’t have large stacks of bills to deal with during an already stressful time. 

Buy Young

Purchasing life insurance while you are young has other benefits besides being a financial safety net for your loved ones. The younger you purchase a life insurance policy, the cheaper it will be. If you don’t need alot of coverage, it will be even less expensive because the death benefit doesn’t pay out as much. 

Employer Coverage Isn’t Enough  

Benefits from your employer are a great perk, but a group life insurance policy offered through your employer typically isn’t enough if you need significant coverage amounts. Consider purchasing a supplemental life insurance policy, especially if you have dependents to ensure that all your necessary expenses will not become a burden on your family. 

 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Life Insurance and Divorce

  
  
  
  

Life Insurance and Divorce | EfinancialAre you wondering how your life insurance policy will be affected by a divorce? Life insurance is typically overlooked during the divorce settlement process, but it’s an important financial tool that both ex-spouses should have. 

Reconsider your Beneficiary

Life and insurance and divorce should prompt reconsideration of your beneficiary. If your life insurance policy has your ex-spouse as the beneficiary, you may want to change that after getting divorced. Each situation is different, so evaluate it as you see fit, and remember, the beneficiary will receive the death benefit of your life insurance policy after you pass away. Your life insurance policy provides a safety net for your dependents should you pass away, so you want to make sure your beneficiary has the same goals and plans to use the money how you see fit. Other beneficiaries to consider may be your parents, family members or close friends. 

Does Your Policy Have Cash Value?

If you or your ex-spouse have a term life policy, there isn’t much to worry about since it doesn’t have cash value. A permanent life insurance policy, however, could have cash value and may need to be divided according to the terms of your divorce settlement. If you remain the sole policyholder after the divorce proceedings, examine your insurance policy and be sure to specify who you want to receive the cash death benefit.

The Future

Life insurance is designed to provide a safety net for your loved ones should you pass away, so if a divorce leaves you with no policy, you should reevaluate your situation. If your ex-spouse is still the major provider for you and children, you may want to discuss being the beneficiary of a life insurance policy in their name. 

A divorce is a good time to also reevaluate your coverage amounts. If you are now receiving child support or alimony payments, make sure your life insurance policy covers them.

 

Divorce can cause a lot of changes in your life, but it’s important to make sure that you still keep the future in mind and protect your loved ones with life insurance. 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Life Insurance Myths

  
  
  
  

Life Insurance Myths | EfinancialLife insurance is one of the most important financial tools you can have, but not everyone makes the wise decision to purchase it. Common misconceptions can prevent consumers from obtaining the life insurance coverage they need to protect their loved ones. We’ve made it our mission to debunk life insurance myths so read on and learn!   

I’m Single So I don’t Need Life Insurance 

Sure, you may be single and have no dependents, but you probably have many other reasons for needing life insurance. Other motives to have life insurance include debt you may leave behind like mortgage payments, credit card debt or student loans. The death benefit from life insurance can also pay for funeral expenses or medical bills that can pile up after you pass away. 

My Coverage Should Be Twice My Salary 

There is no set rule for how much coverage you should have, coverage amounts are unique to each life insurance policy and financial situation. When determining how much life insurance coverage to purchase, it’s important to consider: 

  • Your income
  • Major debt like a mortgage payment
  • Credit card debt
  • Everyday living expenses
  • Future expenses like college education

A good rule of thumb is to add these amounts together for the yearly amount of coverage needed. Consider how long you want life insurance coverage for and factor that in for a final amount of coverage needed. If you’re unsure, consult a life insurance broker or try an online life insurance calculator. 

Life Insurance Through My Employer Is Enough 

In most cases, life insurance through your employer is simply just not enough coverage, especially if you have dependents. Take the time to calculate how much coverage you need and compare it to the amount available through your workplace coverage. It’s probably likely that it will fall short, so consider purchasing supplemental coverage. 

The typical employer coverage amount is either a flat amount or a percentage of your earnings, which isn’t nearly enough to cover mortgage, college tuition, and everyday living expenses. 

Only The Primary Breadwinner Needs Coverage 

If you and your spouse or partner have dependents, it’s important for both of you to have life insurance policies. Covering the costs of what a homemaker provides for your family can be more expensive than you would think. When considering insurance for stay at home partners, think about the cost of childcare as well as other household tasks they provide as a job. Consider how how much it would cost to replace that with a service provider and be sure to factor all those costs into your life insurance coverage amount.… 

Before you let myths and misconceptions convince you not to purchase life insurance, do some research and get the right answers.

 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Leave Behind a Legacy

  
  
  
  

Leave Behind a Legacy | LifeStoryYou have already continued your legacy for your loved ones and dependents through life insurance, but there is a new way to allow your loved ones to remember you and share in your legacy. LifeStory.com, a new website, provides you the opportunity to remember someone special not just by looking at pictures and videos, but through sharing their advice and wisdom with others that loved them.  

LifeStory.com is a free website that allows you to share the stories and insights your loved ones passed along when they were alive. You can share LifeStories with other family and friends and together use the website as a centralized place to remember those who have passed. The website allows you to post stories, memories, videos and pictures. 

You may have never met your grandfather’s best friend from school, but you both feel the same loss when your grandfather passes away. You may not even live in the same part of the country as some of his friends and family, but you can connect on LifeStory.com and share memories and stories. LifeStory.com is the first tool of its kind that offers a social platform for users to interact with one another. 

Let your loved ones leave behind a legacy that will last for years to come by visiting LifeStory.com. Start celebrating their life today. 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Steps to Purchasing Life Insurance

  
  
  
  

Steps to Purchasing Life InsuranceWhether it’s the first time you’re purchasing life insurance or you’re a life insurance pro, there are generally similar steps to take when it comes time to purchase a policy.  

Know Why You Need It

Everyone needs life insurance at some point in their life, but it’s important to understand exactly why you need it before purchasing. A firm understanding of why life insurance is important can help you purchase the correct type of coverage. 

Know How Much You Need

It’s more common to not have enough life insurance than to have enough. When purchasing life insurance, it’s important to take the time to accurately determine how much coverage you need. Consider the amount of your income as well as any debts, mortgage payments or future expenses like college education. Using a life insurance calculator can also help you accurately gauge the coverage amount. 

Know What Type You Need

There are two basic types, term life insurance and whole life insurance. Term is a type of policy that is only good for a specific term length, anywhere from 1 year to as many as 30. Whole life insurance remains in place for the entire lifetime of the policyholder, even if they live to over 100. Knowing what type of life insurance is best for your needs will help you to get an accurate price quote. 

Get a Life Insurance Quote

Visit a life insurance company online and get a free online life insurance quote. Be honest when filling out the form so you can get an accurate picture of what your life insurance rates will be like. If possible, use a life insurance company that provides quotes from multiple providers, to ensure you’re getting the best rate and have multiple options. 

Ask Questions 

If you still have questions after doing research and getting a life insurance quote, contact a financial advisor or life insurance agent. Make sure you are comfortable with the life insurance policy and coverage amounts before you purchase. 

Visit us today to learn more and get a free life insurance quote.

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com
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