What's the best life insurance policy?
The financial needs of every individual and family are unique, so it’s only fitting that the best life insurance policy is the one that supports your personal financial situation. Life insurance policies vary by type of policy, whether term or whole life, rates, coverage amounts, and more. eFinancial can help connect you with the best life insurance companies to find a policy to suit your needs at any stage of life.
Best life insurance policy for young adults
Life insurance is generally advisable if someone relies on you for financial support. As a young adult, you may not yet have a family that relies on your income, but you may have debt with a co-signer that would need to be paid if something happened to you.
Term life insurance is generally the least expensive life insurance policy for young adults. The death benefit can be used to help your survivors pay off like a mortgage, car loan, or credit card balance. It can also be used to help ensure their quality of life if you were not there.
And because some term life insurance policies allow you to convert to permanent or whole life insurance, investing in term while you are young can provide coverage that rolls into a permanent policy as your income and family matures.
Best life insurance policy for new families
Parents of young children will likely want to protect their family and have peace of mind that their dependents will be provided for if something happens.
An affordable term life insurance policy can protect young families while staying within their budget. A 20- or 30-year-term policy for each parent can often provide coverage until the kids are grown, out of the house, and supporting themselves financially.
Best life insurance policy for families with teens
Parents of teenagers may be considering how to pay for the expense of college on the horizon or starting to think about building a legacy to pass on to their maturing young adults.
A term life insurance policy is an affordable option that can provide financial peace of mind until teens are old enough to support themselves. For example, the parents of a 13-year-old can take out an inexpensive 10-year term life insurance policy, which would cover the financial needs of paying for college and expire when the child is 23 and has (hopefully) graduated from school.
A whole life insurance policy offers an extra savings vehicle (known as cash value) that can be used for education expenses. The major benefit of whole life insurance is that the cash value is often not considered in financial aid calculations. That means parents can build a robust policy, and it likely won’t negatively impact their child’s ability to receive financial aid.
Using a permanent or whole life policy can also start to dedicate your funds towards coverage that is guaranteed to be passed onto your beneficiaries. If you want to build a lasting legacy to pass on to your children (and maybe even their children), permanent insurance policies can be a smart way to build a dedicated reserve.
Best life insurance policy for families with adult children
Families with adult children may use life insurance to support a surviving spouse, a child with special needs, or even provide for grandchildren. Life insurance for families can be either term or whole life, depending on the family’s unique needs.
A decreasing term life insurance policy can help cover a debt like a mortgage that parents don’t desire to pass on to their children. Since a decreasing term policy is tied to the debt, the policy will expire once the mortgage is paid, ensuring no remaining mortgage debt will be passed on to heirs.
A whole life insurance policy can ensure support for a surviving spouse or adult child with special needs that would benefit from lifetime coverage. Plus, you can add grandchildren or others as beneficiaries if you want them to receive a share of the death benefit when you pass.
Best life insurance policy to build a legacy
Whether whole or universal life, permanent life insurance is best for those looking to build a legacy.
The major benefit of permanent life insurance in building a legacy is that the policy lasts your entire lifetime as long as premiums are paid. That means no matter how old you are, those who rely on you financially can count on the death benefit from the policy. With term life insurance, you’ll leave a legacy only if you die during the term – and term life policies generally have higher premiums the older you enroll.
Best life insurance policy for dangerous professions
The professions that are considered dangerous will vary for each insurance company, but professions like delivery drivers, airline pilots, construction workers, and first responders often top the list of dangerous jobs. For individuals with a dangerous job, a group life insurance plan paid for by an employer is typically the first line of defense. Because these group plans often have limited portability, meaning if you leave your job you lose the coverage, it makes sense to also consider getting an additional term life insurance policy on your own.
If you have a profession that some consider dangerous, it’s best to speak with a licensed agent to help you explore options and compare quotes from multiple insurance companies. Doing so will help ensure you’re getting the best possible rate across a range of potential insurers and policy types.
Best life insurance policy for people nearing retirement
Depending on your retirement plans, two policy options may be best for those quickly approaching the golden years. First, those who have lingering debt, like a mortgage, that won’t be paid off by retirement may choose a basic term life insurance policy for a term that lasts until the debt is repaid.
Another option for those approaching retirement is to consider a whole life insurance policy, where the cash value component can be used for income during retirement years. The younger you are when you purchase a whole life policy, the better, as the cash value component of the account has more time to grow.
Best life insurance policy for people in retirement
Those in retirement may consider final expense insurance the best option. There are two types of final expense insurance: simplified issue or guaranteed issue life insurance. A simplified issue policy only requires you to answer a few general health questions when applying, while guaranteed issue may be favored by retirees with health concerns as there’s’s no health questions or medical exam required.
Final expense coverage can be issued to individuals up to age 85 (with some insurers). A final expense policy generally offers a lower coverage amount as it’s designed to cover only funeral, burial, estate, or other end-of-life expenses. It may be a more costly policy, but the peace of mind knowing that family members won’t need to pay for final expenses can be worth it.
Find the best life insurance policy for you
The best life insurance policy for you is the one that meets your financial needs. Whether you have debt, want to replace income, or are simply looking for a policy to cover funeral expenses, there are plenty of types of life insurance to choose from. Call a licensed agent at eFinancial today to help you find the best life insurance policy for your needs.