Life insurance can be an uncomfortable subject to discuss with loved ones. Nobody wants to talk about death; however, it's something that happens to everyone. Nobody lives forever, and life insurance serves to help ease the financial blow that a death can cause.
Many Washington, DC residents aren't sure of what types of life insurance are available, or what's right for them. Having a life insurance policy in place that satisfies your needs will give you the peace of mind that comes from knowing your family will be financially taken care of and that your wishes will be honored after passing.
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Washington, DC Life Insurance Facts
- Heart disease is the #1 cause of death in Washington, DC.
- DC has a lower life expectancy than the national average, at 75.61.
- Our nation's capital has a higher than average rate for heart disease, cancer, homicide, diabetes, blood poisoning, and hypertension.
The District of Columbia may be small. But health problems there, along with the crime rate, drive the life expectancy much lower than the national average.
Whether you already have life insurance, or you're just beginning to think about a life insurance policy, it's wise to be familiar with the different policies available in order to choose one that's right for you and your family.
Term Life Insurance in Washington, DC
One of the most popular types of life insurance is a term life insurance policy. Typically, these policies come in two types: "level term” and “decreasing term.” These two policies differently in death benefit amounts. A level term policy will pay the same amount for a death benefit throughout the entire life of the policy, while a decreasing term policy will offer a decreasing benefit as the policy ages.
The most common types of policies are the following:
- Yearly renewable term
- 5-year renewable term
- 10-year term
- 15-year term
- 20-year term
- 25-year term
- 30-year term
- Term to a specified age (usually 65)
Some term policies are convertible, which means that you can change the policy into a permanent policy without having to do any additional medical exams to provide proof of your insurability.
Permanent Life Insurance in Washington, DC
Permanent life insurance policies are another popular type of policy. These policies, sometimes termed "whole life" insurance policies, offer your beneficiaries a death benefit after your passing. There are three major types of permanent life insurance: traditional whole life, universal life and variable universal life; however, variations are available. Typical policies may resemble the following:
- Whole or ordinary life: This is the most well-known type of permanent life insurance policy. Whole life offers your beneficiaries a death benefit, along with a savings account. The benefit doesn't grow or change; however, the savings account can accrue growth, such as interest.
- Universal or adjustable life: This insurance policy usually requires a medical examination, as it allows you to increase the death benefit. Additionally, a cash value account is offered in addition to this policy, which earns interest comparable to a money market account. Payments can be made out of this account.
- Variable life: With a variable life insurance policy, you get a death benefit, but you also have the option of an investment account. While the investment option is nice, it can be risky, given the vulnerability of the stock market. Some policies guarantee that your death benefit will not fall below a minimum level.
- Variable universal life: This type of policy combines both variable and universal life policies. The policy comes with the investment option of variable life insurance, along with the ability to adjust your premiums and death benefit -- something you usually see with a universal life policy.
Additional Life Insurance Options in Washington DC
There are many other types of life insurance available, such as the following:
- High-risk life insurance
- No medical exam insurance
- Critical illness life insurance
- Funeral insurance
Talk with an insurance agent beore purchasing life insurance in order to find the policy that best fits your lifestyle and needs.
How Much Life Insurance Do I Need in Washington DC?
The purpose of a life insurance policy is to provide continuation of financial support for your beneficiaries after your passing. Here are a few quick suggestions to help you determine how much life insurance you need:
- If your goal in purchasing life insurance is simply to cover funeral and burial costs, consider purchasing a small term life policy, such as $10,000 to $20,000 in coverage.
- If you are the primary income earner in your household, or you have depedents, a larger term policy is probably a good fit. Typically, individuals with dependents purchase coverage of anywhere from $500,000 to $2 million or more to ensure that their dependents’ quality of life will remain stable after their passing. In order to get a good overall total for coverage, you'll need to calculate your family's current expenditures, and add costs such as vehicles, college education, etc.
- If you'd like the life insurance policy to grow over time, or even act as an investment, permanent life insurance will work well for you. As an example, you could purchase a $1 million term life insurance policy and begin converting over portions of the policy to a whole life insurance policy in small increments periodically to build a growing cash account that can help you remain financially stable during retirement.
How Much is a Life Insurance Quote in Washington DC?
Life insurance costs can vary greatly. When shopping for life insurance quotes in Washington, DC, be sure to provide the following information in order to get an accurate quote:
- Type of policy you are considering
- Type of benefits you are considering
- Your age
- Your dependents (spouse and children)
- Your past medical issues
- Any surgeries/prescriptions/medical interventions
- Driving record
- Credit score
- Your job/line of work
- Your family's financial needs
- Whether you use tobacco/drugs/alcohol
All of these factors, and more, will go into creating a life insurance policy that will ensure your family's financial stability upon your passing.
How Do I Get Life Insurance in Washington, DC?
Purchasing life insurance is a big decision, and you need to have a professional by your side in order to get the best coverage for the best price. Trusted Choice® independent agents are always available to help you go over coverage options, answer questions, or even help you file a claim.
Their years of experience working with Washington, DC insurance providers enables them to find only the most comprehensive quotes at highly competitive rates. Contact a Trusted Choice agent near you to find out how you can protect your dependents with an insurance policy that meets your needs and fits your budget.