You may have recently married, started a family of your own, or opened a new business. Regardless of your situation, you want a life insurance policy that will be there for your family and loved ones after you're gone. What life insurance options are best for you and your circumstances?
Before you search for life insurance quotes, there are several factors to consider.
The life expectancy of Arizona residents is as follows:
The leading causes of early death include:
Some of these causes of death are preventable, while others are not. No matter how healthy your lifestyle, accidents can happen to anyone at any time. When the unexpected happens, you want to protect your family and loved ones from financial hardships following your passing.
As people reach their 30s they start doing things that warrant life insurance. Whatever your life choices and circumstances, the best time to buy life insurance is when you're young, as premium quotes increase with age. These life events are a good indications of when you need life insurance:
Life insurance can help those you leave behind continue making mortgage payments, afford college tuition at the University of Arizona, and avoid the financial burden of your burial expenses.
Insurance companies offer a wide range of policy options for life insurance plans. A basic life insurance policy provides death benefits and is designed to cover loss of income, end-of-life expenses, funeral costs, and other immediate financial needs should you die suddenly or unexpectedly.
More comprehensive life insurance policies extend their coverage to other areas as well:
As you review life insurance policies from AZ providers, you will notice the choice between term and whole, or permanent, life insurance. We will discuss term life insurance first.
Term life insurance: A policy that is enforceable for a specific time and has a limited value that you specify when you buy the policy. In the event that you die within the specified term, the insurance company pays the exact value of the policy as a death benefit to your beneficiaries.
Terms can be renewed on a yearly basis, every five years, or even up to 30 years and everything in between. The most common type is the 20-year term policy.
Typically, the premium for a term policy will be based on your age and health conditions at the time you purchase the policy. The premium will be locked in at the same rate during the length of the term. For example, your premium for a five-year renewable term will not change for five years. Once the five-year term is up, your premium will be updated to a new rate that reflects your new age and health. Some longer term policies will guarantee that your premium will not increase during the term; others don’t make this guarantee, which means the insurance company could raise your rate during the policy’s term.
Some term policies are convertible, meaning that you can change them into permanent life insurance policies without having to prove your insurability. Be sure to ask your insurance agent about this feature, especially if you anticipate significant life changes in the future, such as getting married and having children.
The second option you will see from AZ insurance companies is permanent life insurance, which is more complex and comprehensive than most term policies.
Permanent life insurance: A permanent life insurance policy is in force for your lifetime as long as you continue to make your premium payments. Like term life insurance, permanent life insurance pays a death benefit, but it also has an accumulating cash value.
There are several types of permanent life insurance, including:
The type of permanent life insurance policy you may want to purchase will depend on what other types of retirement or stock options you may have, how much risk you are willing to take, and what kind of options you want to leave your beneficiaries.
Insurance providers will take several factors into account when they calculate your life insurance quote, including:
The cost of life insurance varies considerably based on these factors and more. A five-year term life insurance policy can be quoted from $15 a month for a young, non-smoking female to $1,000 or more a month for a middle-aged, male smoker. Because so many variables are used in calculating life insurance premiums, it's a good idea to compare several quotes from a variety of Arizona insurance companies in order to find the best rates.
You don't want your sudden or unexpected death to financially burden those you leave behind, or you may wish to leave a legacy for your dependants. No matter your reasons, life insurance is the best way to care for your loved ones long after your death.
Life insurance is complex and sometimes confusing, and it's important to work with an experienced insurance agent. Knowledgeable, independent insurance agents on the Trusted Choice® network are always available to answer your questions, suggest coverage options, and even assist your loved ones in filing a claim.
These agents have years of experience working with Arizona insurance companies, enabling them to find a number of quotes from several providers, ensuring you only receive those quotes with the best coverage options and the most affordable rates. Contact a Trusted Choice member agent near you to find out how you can leave a lasting gift to your family with a life insurance policy that meets your needs and budget.