Life Insurance Blog | Efinancial

What to Expect with Life Insurance and Divorce

Major life events are always occasions to examine your current life insurance standing and needs. A divorce is one of such event. There are several things to consider concerning your life insurance when you divorce your spouse.

The Policyholder Controls the Policy

This might sound like common sense, but it is something that can be easily forgotten. If your life insurance is covered by a rider on your spouse’s policy, he or she holds control of the policy. That means that your insurance future rests in the hands of the person you are divorcing.

Make sure you sit down with your former spouse to discuss this. If you are carried on a rider, you may want to be removed so that you can purchase your own life insurance. This way you will control your own insurance future and your ex will most likely save money on premiums for the remaining policy.

You May Have to Keep Your Former Spouse as a Beneficiary

Your first instinct upon getting divorced may be to completely remove your former spouse from your life insurance policy. However, you may not be allowed to do this. If you are responsible for paying alimony or child support, you must keep a life insurance policy to ensure that you can continue to provide the legally mandated amount.

If you are the one receiving these payments, you do not have to keep your former spouse as a beneficiary. If you have a separate policy, you should seek to make sure that it includes your current preferred beneficiary.

Life Insurance Decisions to Make after Divorce

There are several other things you will have to consider concerning your life insurance after divorce.

First, examine your current needs. You may have purchased life insurance at the time of marriage for the express purpose of helping your spouse in the case of your death. Now that you are no longer married, you need to reexamine your needs as a single individual. If you have no major debts, are in a good financial situation, and have no remaining obligations to your ex, you may decide to forgo coverage.

You need to be careful when making this decision. Remember, just because you’re divorced doesn’t mean that no one will have to pay for your funeral or handle your debts. Choose to ignore coverage only if you are certain that you won’t need it.

You may also want to update your beneficiaries. If you get remarried, you will probably want to include your new spouse and any stepchildren that may enter the picture. Also, while you may not want to include your ex-spouse, you may want to keep your children on as beneficiaries.

If you need to update your insurance or apply for new coverage after divorce, make sure to talk to a life insurance expert for help.

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

Do You Need Life Insurance if You Have a Will?

It is important to make preparations for your family in case you die. If you aren’t present to care for your spouse, children, and other loved ones, you want to be assured that they will be supported.

There are many steps people take to prepare for this situation. One of them is the creation of a will. A will is a legal document that specifies what happens to your property, money, and other assets upon your death. Most people choose their spouses and children as beneficiaries to help provide for them financially and to ensure that objects with emotional value stay in the family.

Life insurance is another product that many people purchase to help their families. Life insurance replaces your income to provide for your family’s financial future if you are not there.

Some people believe that one or the other of these items is all you need to ensure your family’s future. This is not true. In fact, a well-chosen life insurance policy and a carefully drawn will work best in concert to provide for all circumstances. If you have a will, you probably also need life insurance and vice versa.

Why You Need Both Life Insurance and a Will 

A will only accounts for assets that you already control. It is absolutely essential to guarantee that your savings, home, and other aspects of your estate go to the individuals you wish. For instance, a will allows you to specify that your house is passed on to your children and that your savings can go to help them in the future. 

However, a will only does not help your family with any debts that you may leave behind. Passing your house on to your children may not seem like a gift if it also includes a sizable mortgage payment.

This is where life insurance enters the picture.

Life insurance helps replace your income and pay off your remaining debts. If you have taken out a life insurance policy, your family would be able to pay off the remaining mortgage in the above situation. Life insurance can also cover the costs of your funeral or medical bills that may remain from a protracted illness.

Life insurance may also supplement what you give to your family. We would all like to have a large estate to pass on to our family, but this is not always feasible. For many people, the death benefit from a life insurance policy helps provide a larger sum of money to the family. It is like an extra gift to give to those closest to you.

If you have a will but no insurance, now is the time to begin to compare life insurance rates.

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

Is Life Insurance Even Necessary for a Stay-at-Home Parent?

It’s common for most stay-at-home parents and their spouses to immediately assume life insurance isn’t a necessity for someone who doesn’t head off to work and clock in every day.  After all, the main goal of a solid life insurance policy is to replace an income, and if you have no career, you’re not bringing in an income…so there’s nothing to replace, right?

Well, things are a little more complicated than that.  Not only would your sudden death hammer your family on an emotional level, but it would have a huge impact on their financial status as well.  Let’s have a look at why even a stay-at-home parent should think of a life insurance policy as a priority.

Cover the Funeral Costs

This one is most obvious but so many people still seem to miss it.  A funeral costs just as much for a stay-at-home mom as a breadwinner and can be a heavy burden in the event of your death.  A good life insurance policy can at least make the financial aspect of your final affairs a brief issue, little more than an afterthought.

The Value of Your Contribution

First off, don’t underestimate how much the work you do on a daily basis contributes to your home and family.  Often, many stay-at-home parents assume the role of cook, housekeeper, personal driver, accountant, handyman travel agent, therapist, and more.

If you were performing all your various functions for a small business or corporation, you would likely be taking in more than 6 figures per year. 

Before you brush this off as hyperbole, think about what you could make if you stepped out of the home and reinvested all that money elsewhere.  Even in your current position, all that work has a real monetary value to your family. 

They reap the rewards of everything you do, it boosts their quality of life, and they save money on “outsourcing” all that work outside the family.

The Cost of Outside Help

If you were suddenly gone, all that work would still need to be done.  What is your spouse going to do?  Chances are they won’t be able to just cut back all his hours at work and do it all on his own.  It’s far more likely they’ll likely end up having to bring in outside help. 

The costs of doing so will be very significant, and chances are that even with a life insurance policy there will never be enough funds to maintain the same quality of life.  What a good policy can do, however, is maintain norms as well as possible given your absence and the emotional struggle of coping with loss.

The Cost of Child Care

Right now you don’t juggle the extortionate prices of child care in America because you provide all the care they need yourself.  With you gone, however, your spouse will have to face these realities, and if he spends a lot of time on the road for business or works into the night, the costs will really add up. 

The right term policy can set your family up with an annual payment that takes child care costs into consideration so your family never has to worry about it, ever.

Educating Your Children

At the very least, a life insurance policy can come in real handy for paying your children’sway through college later and sparing your children and spouse from a ton of debt.

You likely don’t  expect to pass away any time soon, but it never hurts to stop and think for a second about how your passing would affect your family.  And even the death of a stay-at-home parent has a financial impact – let alone the emotional impact.

Put a safety net in place.  Get in touch with one of our licensed insurance agents today to discuss a way to protect and carry your family even in the event of your absence.

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

Get in Shape to Save on Life Insurance

It is not a secret that your life insurance costs and even your approval are dependent on your health. Companies offer and price term life insurance based on the probability of you surviving through the term. A healthy person is deemed more likely to survive through this period. Because of this someone in good shape usually finds easier approval and more favorable rates. A person who is out of shape is considered a larger insurance risk. He or she will often discover higher rates and may even have more difficulty with approval.

There are elements of your overall health that remain out of control. For instance, high blood pressure may run in the family. However, there are many things you can do to seize control of your health to help you save money on life insurance.

Quit Smoking 

The health benefits of quitting smoking are well known. When you quit, you decrease your risk of heart disease and throat or lung cancer. Quitting will also help you save on life insurance. Non-smokers are seen as less of an insurance risk than smokers. You can apply for insurance as a non-smoker after being nicotine free for an entire year.

Maintain a healthy weight

If you are overweight, you may discover that life insurance rates are higher and approval is more difficult to obtain. To find more favorable rates, you should try to lose weight and get into better physical shape. To do this, you need to sit down and create a strategy.

First, set clear and reasonable goals. Be realistic with your expectations. You’re not going to lose 100 pounds in month. If you set unrealistic goals, you are more likely to become discouraged and give up.

Second, make a game plan. You need to have road map for success. You should consult with your doctor before embarking on a weight loss program. He or she will be able to recommend a program that is right for you. You may also want to join a gym and speak with a personal trainer. A trainer will help you create a fitness routine that fits your current condition and puts you on the path to where you want to be. Once you begin to exercise it should become part of your routine.

Remember that diet and exercise work hand in hand. Cutting calories alone is often not enough for most people to lose weight, and if it does work it can lead to weight gain once the diet ends. Exercise is essential to keep the weight off and to improve general health. When it comes to your diet, focus on eating healthy, nutrient rich foods. Don’t starve yourself, but instead choose healthier food to fuel you.

By following these tips, you will discover better rates when you compare life insurance, and you will increase your chances for approval.

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

How to Compare Life Insurance Policies

When you shop for life insurance, you are faced with an almost limitless number of possible policies. Like so many things in life, a little education and strategy can help you navigate your way through your life insurance options.

There are several things that you should keep in mind when you compare life insurance.

Life Insurance Isn’t all about the Rate

When you purchase a car, you don’t necessarily drive off with the lowest-cost vehicle on the lot. That car may not include the features you’re looking for such as low mileage, air-conditioning, and airbags. You don’t want to be stuck with a jalopy.

You should approach your purchase of life insurance in the same way. Price shouldn’t be the only thing you look for. That policy with the eye-catching low rate may seem enticing, but it may not offer the coverage that you need.

Before you compare life insurance policies, you need to determine your needs. Consider your income and the amount of financial debt that you are likely to pass on to loved ones. This will help you determine if you need a $100,000 policy, a $250,000 policy, or more. Then when you shop, check the details of each policy to ensure you’re making an apples-to-apples comparison.

Remember the Riders

When you compare life insurance, look at the riders included on individual policies. Riders are additions to your coverage. For instance, there can be riders attached that provide disability insurance or extend coverage to a spouse or children. Only consider the products that include the riders you need or want. Ignore policies with additional riders that you don’t need.

Compare Life Insurance from Multiple Companies

In order to find the best rate for your ideal policy, you should compare life insurance from multiple companies.. If you spend all of your time searching with a single company, you could miss a similar policy that is offered at a lower rate or policy with a similar rate that offers more coverage. An effienct way to do this is through a brokerage.

Many people find it helpful to compare life insurance online. There are many companies that make this process simple. At Efinancial we compare policies from many of the top companies in the industry for you based on your particular criteria. We then provide only quotes that meet your requested needs. This saves you time since you don’t need to visit the websites of individual companies to compare rates. It can also save you money because we might include policies from companies you would not search for on your own.

Remember, before you start looking for your life insurance policy. Get your strategy in order. Understand your needs and compare policies online to save time and money.

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

“I’m Young and Single – I Don’t Need Life Insurance…Right?”

Many American citizens mistakenly believe life insurance is only meant for older or married people – people who have others depending on them.  After all, when it’s just you, what is there to protect, right?  On top of that, when you’re young, there’s no sign of death knocking around a nearby corner. 

You get comfortable and let time slip by, as if it stretches on forever.

The Only Thing Certain is Change

Certainly you don’t need to read an online article to realize that the feeling of invincibility is a mirage.  Like it or not, life does have an expiration date, and a sudden, unfortunate accident can strike at any time, no matter how young or healthy you are. 

And when the clock stops ticking, someone has to step up to the plate and handle your final affairs.

Even without an immediate family to worry about, every death comes with a price tag.  Like most Americans, you have monthly bills that would need to be settled.  You likely owe money on a car – possibly a mortgage as well.  On top of that, there would be funeral and other final expenses to worry about.

No bachelor or bachelorette should ever leave these concerns behind for parents, siblings, or close friends to handle in their absence.

There’s Huge Incentive in Starting Early

Many of today’s singles are extremely responsible people who’ve chosen to  work towards building a stable future.  If you see marriage and family in the future, know that there is a huge financial incentive in starting life insurance early.

It probably comes as no surprise to you that younger people usually get far better rates on their premiums; they are in better health and face less risk of dying early in the life of the policy. 

Not to mention that starting early negates the chance of coming down with an illness or other health issue that might negatively affect the medical underwriting process if you wait.

If you do get married later on, just apply for additional coverage or see if you can add to your existing plan.

Live On After You’re Gone

Hey, maybe you don’t ever want to get married or start a family. 

And that’s perfectly okay.  Many young people in their 20s and 30s are now choosing to completely forgo, or at least delay, marriage and children. 

But many of these same young revolutionaries still want to leave their mark behind when they pass from this world.  How can life insurance fill this role?

Well, for one, most of us know children out there we really love and care for, even if they’re not our own.  Nieces and nephews.  Young cousins or siblings. 

Life insurance allows you to lend a hand.

What about charitable causes?  Other successful singles create a legacy by using their life insurance policy for charitable causes they care about, ensuring their name lives on.  

Look, no matter how young and how happily single you are, death is something no one can ignore.  It’s a simple fact of life, and it’s never too early to prepare. 

Find out more about whether or not a life insurance policy makes sense at this stage in your life.  Get in touch with one of our licensed life insurance professionals today.

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

Review Your Life Insurance Policy

Your life is not static. You’re constantly changing, evolving, and growing. Every day you take on new responsibilities and roles. Just as your life is continually evolving so are your life insurance needs. For instance, a life insurance policy you purchase as a single 30-year-old may not offer the same coverage you’ll need ten years later as a married father. Below you will find a checklist of events that should trigger you to review your life insurance.

 

Marriage. Before you are married you are only responsible for yourself. After you are married, you are partly responsible for your spouse. You will take on many joint debts such as car loans and mortgages. You should look for more life insurance when you get married. 

The Birth of Children. Your children will be dependent on you almost completely until they become adults. You must be sure that your life insurance is sufficient to cover their day-to-day needs. You should also consider their future education and other expenses. 

Changes to your Debt. If you take on major debt such as a mortgage, you may want to increase your life insurance to cover it. Conversely, many people are comfortable decreasing their life insurance coverage as their debts diminish and are paid off. 

You Wish to Change Your Beneficiaries. Perhaps you would like to add new children to your account. Maybe you are no longer married and wish to remove a former spouse. Whenever you need to change or update your beneficiaries, you should also review your policy to ensure that it covers your current needs.   

Your health improves. Have you quit smoking, lost weight, or become healthier in any other way? If so, then you should consider reviewing your life insurance. If you are healthier, you may qualify for lower rates or an increased death benefit. You will have to undergo a medical exam to determine if you qualify for these benefits. 

Your Income Changes. If you get a significant raise, you should consider reviewing your life insurance. You will find yourself with more income to replace in the event of your death. You may want to increase the amount of your insurance. 

Retirement. By the time they reach retirement, many people have paid off their major debts and saved up a sizable nest egg for themselves. In these cases, life insurance is often decreased, canceled, or term policies are allowed to run out. Some people find themselves still in need of life insurance. In these cases, many opt to renew their term policies or convert from term to whole life insurance if possible.

 

If you have questions about reviewing your policy, be sure to contact life insurance agents you can trust. 

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

What Women Need to Know about Life Insurance

It is not as common for women to have life insurance as it is for men. The most common reason for this is that women don’t think they need life insurance. Life insurance replaces the income of a lost spouse or loved one. Since in many homes men are still seen as the breadwinners, it is common for the husband to carry a policy, while the wife remains uninsured. 

This can be a fatal mistake. 

Life insurance is just as valuable for women as it is for men. This includes all women, working and non-working. Life insurance for women is valuable for many reasons. 

Life Insurance Replaces Income             

You don’t need to be told that women make up a growing percentage of the United States workforce. According to the U.S. Department of Labor’s Women’s Bureau, women account for almost 47% of the workforce, and they project this number to grow over the next decade. While there is still the perception that men are the breadwinners in a household, the reality is different. In many homes, the woman earns more than her partner. Even in situations where the husband makes more, the family still relies on the wife’s income to make ends meet. 

Any woman who works and earns money to help support a family should consider life insurance. Think about the financial difficulties your husband or partner will face if your income were to disappear. Many families have a hard time surviving on only one income. A carefully selected life insurance policy will help protect your family from this dire situation. 

Life Insurance Replaces More Than Income 

Stay-at-home wives and mothers often think that since they earn no tangible income that they don’t need life insurance. This isn’t true. What many people fail to take into account is the actual value of all of the work of a stay-at-home spouse. Stay-at-home mothers are responsible for childcare, housekeeping, driving services, and more. If a stay-at-home mother dies, then all of these services would have to be paid for. This can cost tens of thousands of dollars. This is why it is crucial that stay-at-home spouses consider life insurance. It is essential for the continued success of your family. 

The Price Is Right 

There is often a perception that life insurance is expensive. This is not the case. Term life insurance rates are often very affordable. In fact, women often find life insurance more affordable than men because they have longer life expectancies than men. Since life insurance rates are determined by the likelihood of death, women who are approved often find rates lower than men of the same age and comparable health.

 

With affordable policies and apparent need, it is important that women shop for insurance. To get the best rates, most experts suggest that you compare life insurance rates online.

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

Get the Facts on Term Life Insurance Quotes Online [INFOGRAPHIC]

Life insurance is a big deal. For many people, it’s among the most important purchases they will ever make. A well-chosen life insurance policy can protect those closest to you from hard financial times after you are gone. It can help your family cover the costs of your funeral, major remaining debts, children’s higher education, and others as well as replace your lost income. 

Still, many people don’t understand life insurance and what it can mean to them and their families. They either don’t think it is important or they assume they can’t afford a policy that offers the coverage that they need. They never take the time to learn about its value or compare term life insurance quotes online to discover how affordable a policy can be. 

We are dedicated to the education of the public about the importance and value of life insurance. We strive to make it as interesting and fun as possible. That’s why we created this infographic. It’s a short but comprehensive visual representation of everything the average person should know about life insurance. 

If you‘re still wondering about life insurance, give it a look. Also, please share it with all of your friends. You never know who needs insurance and doesn’t even know it yet:

 

If you’re ready to shop for a policy, visit Efinancial to compare term life insurance quotes online to find the best rates and the policy that’s the perfect fit for you.

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