Guaranteed Issue vs Term and Whole Life Insurance

Understanding the differences in life insurance choices to find the best price. Yuri_Arcurs/DigitalVision/Getty Image

There are various points in life when people decide they need life insurance. Once you've come to that decision, you will usually be presented with several options and plans. Knowing which type of life insurance is best for you can really help save you money and make sure that the decision you make will give you what you are looking for.

Do I Need Life Insurance? If you are wondering if you need life insurance, you probably do.

Life insurance isn't just for when you get married, are buying your first house, or have children. There are many reasons a person may need life insurance, and some good strategies behind when to get life insurance and what kind of insurance to get. Some situations may call for short term life insurance policies, in other situations whole life policies may make more sense.

What Type of Policy Should I Get?
Before you decide what kind of policy to get, you need to understand what you want from your life insurance policy. Is it to protect your family or other dependents? Do you want a life insurance policy that will also allow you to save money, and borrow money if you need it in the future? How long do you need the policy for, and what your medical condition or age is will also determine what kind of policy you should get.

For example, someone buying life insurance at age 20 will have very different rates than someone buying a policy at 35, or when they are over 50.

The rates for the life insurance will vary based on risk. This is why for many life insurance policies you will be asked to take a medical exam.

Medical Issues and Getting Life Insurance
If you have no medical issues, or nothing serious in your medical history you will have more options than someone who has medical issues.

The good news is that there are life insurance policies for many circumstances.

Working with a good financial planner or life insurance agent or broker will help you analyse your situation and narrow down those choices. You will not have to pay them extra to go over your options, they get paid commission by the insurance company, it is their job to review coverage with you. In the same way it pays to shop around for health insurance, working with a professional in life insurance can save you money, and provide you with solid advice.

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