Life insurance is a sensible decision which must have a place in the financial planning of any household. The main earner has to make some provisions for his family so that they can pay for huge financial commitments such as home mortgages, payment of estate taxes, paying for children’s college studies and so on. Life insurance also has be reviewed every few years as some major events take place life like marriage, divorce or birth of a child. The amount of life insurance must be adequate to care of all the issues. It should be able to replace the income of the main breadwinner of the family. Life insurance companies consider a lot of aspects to categorize you into preferred or standard class.

Your age, health, family history of health conditions, lifestyle and occupation are taken into consideration to determine the category. Life insurance policies are underwritten and the applicants are tested physically to check if they are healthy and for how many years are they expected to live. Immigration status also has a say in the insurance rates. A fresh immigrant in the country with no permanent visa would not be given preferred rates by most insurance companies. Lifestyle aspects such as driving record and hobbies too influence the life insurance rates. A lot of speeding tickets mean higher rates because there are chances that a person who habitually drives rash would meet with an accident as opposed to people who drive safe.

Life insurance no exam is a policy in which the applicant does not have to undergo a medical test. This type of a policy is more expensive than a regular underwritten basic policy because the insurer is assuming more risk by selling insurance to an individual solely on the basis of answers provided verbally. This is an ideal policy for those who do not wish to undergo a medical examination due to any reason such as being uncomfortable or unable to spare the time for the same.

Term life insurance is the type of life insurance which is purchased by most Americans today. It is cheaper than whole life policies with decent coverage options. This policy can also be purchased without the physical examination. It is also called as instant term life insurance because the time taken in processing it very little and you can purchase it online. You need only to fill an online form or speak with an insurance company representative on the phone. If your application is accepted you can possess a term life insurance policy in about fifteen minutes. The questions asked revolve around the age, health issues, smoker or non smoker and lifestyle aspects.

One must think about the loved ones and how would they manage to make ends meet once you or the chief wage earner of the family passes away. A lot of young adults do not think about buying insurance. They only think about it once they reach the middle age. If life insurance is bought early in life, it can save you hundreds of dollars of premiums because the insurance companies offer lower insurance rates to people who are young and are expected to live longer. So purchasing insurance early in life while you are younger and in good health helps in saving a lot of money in insurance premiums which you would be spending on when you are older and not in very good health.

Life insurance helps a great deal in preparing in case an unexpected and sudden financial emergency happens in the family such as an accident or death of the primary wage earner of the family. Such contingency can happen in any family and every household must be prepared for this. Term life insurance is a simple benefit policy which can assist a family to pay for the basic financial commitments such as paying off home mortgages and settling estate taxes. The premiums of a term life policy are pretty affordable for most households.

Choose the term and coverage of the policy after much deliberation on the financial conditions and the future goals which you have set for your family such as creating funds for children’s college education, making provisions for repaying loans and debts etc. Life insurance is today a necessary and integral part of financial planning of every family.

Author Bio: Article by David Livingston of EQuote.com, a website with the best low cost life insurance and instant term life insurance information in the country.

Category: Finances
Keywords: affordable term life insurance, life insurance no exam