Consumer Life Insurance Guide

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When an individual passes away, those who are left behind may suffer a certain amount of financial hardship. This situation could be a spouse and children who are suddenly lost without the regular income of a breadwinner and are forced to drastically – and quickly – change their living arrangements. Or, it could be a key executive in a business, without whom the company would rapidly go under unless there is a certain amount of financial support available to keep it afloat until a suitable replacement can be found.

There are a wide variety of needs that can be solved through life insurance. This financial vehicle is used as a tool in most good, solid financial and estate plans today. Therefore, by having a good understanding of the types of life insurance that are available, the payout options it provides, and tax advantages it brings with it, you will be able to get a clearer picture of where this product may fit into your overall situation.

You will also be able to determine how much coverage you need, how much premium you can anticipate paying, and where to go to obtain coverage if you have an adverse health condition


0 How This Guide Will Help

Beautiful happy family laying down one on another.

When an individual passes away, those who are left behind may suffer a certain amount of financial hardship. This situation could be a spouse and children who are suddenly lost without the regular income of a breadwinner and are forced to drastically – and quickly – change their living arrangements. Or, it could be a key executive in a business, without whom the company would rapidly go under unless there is a certain amount of financial support available to keep it afloat until a suitable replacement can be found.

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1 Identifying Life Insurance Needs

Family moment in nature.

When purchasing a life insurance policy, one of the primary decisions to be made is how much money will be paid out upon the death of the insured, as well as to whom those funds will be paid.

Most people obtain life insurance for the purpose of providing financial security to loved ones and dependents so that spouses or partners, children, business associates, or others who count on them for some type of financial support are not left struggling. With this in mind, it is essential to come up with the proper amount of life insurance needs.

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2 Types of Life Insurance Coverage

While there are numerous variations, there are essentially two primary types of life insurance in the marketplace today. These are term and permanent.

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3 Obtaining Coverage If You Have a Health Condition

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When applying for life insurance coverage, an applicant’s health is certainly an important factor in making a determination as to whether or not to approve them for coverage – and, when someone has an adverse health issue, it could deem them as being a “high risk.”

But, just because someone falls into a higher risk bracket doesn’t mean that they won’t be approved for life insurance. While most people typically fall into the policy categories of “Standard” or “Preferred,” those who have pre-existing health conditions and are considered to be a higher risk will most likely receive a “Sub-Standard” rating.

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4 Customizing Your Policy to Meet Your Specific Needs with Riders

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Because not all situations and protection needs are the same, there are numerous riders that are available that may be added to life insurance policies in order to add the necessary additional coverage. Some of the more common life insurance policy riders that are available include:

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5 Life Insurance for Business Owners

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Although there a numerous benefits that life insurance can provide for individuals and families, it can also be used to protect a business. For most business owners, one of the primary concerns is business continuity if an owner, partner, or key executive dies. Just as with individual situations, life insurance can offer a lump sum of cash to help solve immediate financial needs, as well as ongoing requirements.

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6 Life Insurance Buying Tips – What You Need to Know

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While many people understand that the purchase of life insurance is an essential part of any good, solid financial plan, there are several important factors that should be kept in mind prior to moving forward with obtaining a policy. These include:

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7 Important Life Insurance Terms

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There are many life insurance terms that can be confusing. We’ve created this glossary of terms with an explanation of key terms used in life insurance policies. This way when you read an article or get information about coverage,you can go back to the glossary here to look up the correct definition.

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