The goal of life insurance is to provide a measure of financial security to your loved ones should you die. In its simplest form, it’s a tool to protect against the loss of income. Before purchasing a life insurance policy, you’ll want to carefully consider your financial situation and the standard of living you want to maintain for your surviving loved ones.
Today’s consumers are busy and like to have options. If you’re considering getting life insurance, purchasing it has never been easier because now you can buy life insurance from the comfort of your own home. Getting quotes and applying can be done from anywhere at any time.
Not everyone needs life insurance and maybe you are trying to decide if you should purchase or not. To help you determine if you need it, let’s run through a few scenarios.
Who Needs Life Insurance?
Are there people in your life that would be negatively impacted financially if you died? This would mean a significant other, children, or family members who depend on your income to live. If you are young and single with no children and are a member of a wealthy family, you probably don’t need life insurance.
Are you a stay-at-home parent? Stay-at-home parents do the job of multiple people combined. If you were to suddenly die, your spouse would quickly be in over their head trying to make up for everything you did at home. Having life insurance can afford the remaining spouse to take time off work to get everything situated and help pay for services the stay-at-home parent provided.
Are you a small-business owner? If you died, would the business crumble? A life insurance policy can work to fund a buy-sell agreement. This is a contract among the owners to buy a deceased owner’s share of the business at an agreed upon price in the event of death, disability, or retirement. With this agreement, your partners won’t be scrambling to figure out a way to keep the business afloat and your beneficiaries will still be compensated as well.
Do you have any debt? Did you co-sign a loan with anyone? Do you have any shared credit card accounts? If you answered yes to any of these and don’t want to saddle your loved ones with your remaining balance, then life insurance could help you.
Example: If your parents helped you through college by co-signing your student loans, then anything you didn’t pay off goes to them if you died. Benefits from a life insurance policy would go toward your debt, paying it off so your mom doesn’t have to.
Are you young and healthy? Your age and health play a large role in determining policy premiums. Essentially, the younger you are the cheaper it is so you may consider getting life insurance sooner rather than later.
Example: If you are a newlywed 29-year-old and plan on starting a family soon now may be the perfect time to get life insurance. It would cost less than one dollar a day and it would ensure your spouse and future children are protected.
Example: Maybe your heart belongs to the charity you volunteer at every weekend. Purchasing life insurance now can help you leave a legacy in an inexpensive way.
According to a study by LIMRA, 85 percent of those surveyed say most people should have life insurance, yet only 62 percent do. Of those 85 percent, 86 percent haven’t bought life insurance because they think it is too expensive. This is where term insurance comes in. A 40-year-old non-smoking female can get a $500,000 life insurance policy for 20 years of coverage at only $26 a month. If something were to happen unexpectedly, her family would be protected.
How Much and for How Long?
The rule of thumb is that you should have enough life insurance to cover 10 times your annual income, but this is an estimate and is not right for everyone.
Example: A single, childless man with an annual income of $75,000 does not need the same amount of coverage as a married father of three with the same income.
If you have loved ones who depend on your income you will want to get enough coverage to allow them to live their lives as planned despite your absence, you also want enough to cover your final expenses (funeral/burial), and cover your debt.
Determining the term length can seem like guesswork, but it’s easy to narrow down. If you are getting term insurance to make sure your loved ones are protected from your debt then you only need to get enough to cover it as you pay it off.
Example: If you have a mortgage but believe it will be paid off in 10 years then a 20-year term policy would be unnecessary.
Example: If you are getting term insurance to ensure your four-year-old child can go to college, set the term length for 20 years so their education would still be covered if something happened to you.
How Do I Get Life Insurance?
Here at Quotacy we make the process of getting life insurance as easy as possible. We don’t want you to have to give up your first born and a phone number just to get a term insurance quote and we don’t want you to worry that your personal information will be sold to third parties. Simply enter your zip code, gender, birthdate, smoking status, and whether you want to pay monthly or annually and we’ll instantly show you an estimate for how much your term insurance policy would cost.
After getting your quote you can play around with our slider features. You can adjust your policy value, this is how much your beneficiaries would receive, and also how long you want coverage for. As you adjust these sliders your estimated cost is adjusted right along with you so you know exactly what you’re paying for (no hidden fees here!) There also is an easy-to-use needs analysis calculator to help you determine how much coverage you need.
Once you are happy with the value, coverage, and premium you then click Find Best Policy where you continue on to get more specific so we have the right information to get you the best coverage possible. It is here where you will enter your height/weight, tobacco usage, heart health, and family history. After that you will see a list of insurance carrier choices and plan options. We only work with the top rated carriers so you don’t need to worry about poor business practices when it comes to your money.
Once you choose your plan you complete a pre-application and we take it from there! We make sure you get the best coverage at the price you deserve and we’ll keep you informed every step of the way in whichever method of communication you prefer whether that be phone calls, texts, or e-mails.
Your life is private and we won’t intrude, but invade us if you’d like! We’re always here to help you if you have any questions or concerns so contact us at any time.
No one ever anticipates needing to use life insurance, but the unexpected happens. Be prepared and get a free and anonymous term life insurance quote today.
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Question. I was married to my husband 1994-2011 when he was murdered in our home town. I was a stay at home mom. I worked very little and no hs diploma. I did not know that my husband had life ins till after he died and I was told by his work and best friend that the life ins was not mine because my husband left it all (2 checks of 65,000.00) to our older daughter 19 at the time. She took that check and moved herself/our 7 month old grandson out of our home. My husband and I never talked about life ins. Our son 14 at the time got nothing. I received my husbands 401k in the amount of 80 sum thousand and I paid off our house and down payment on reliable car. He was the breadwinner and I was the stay at home parent with no income. I know I never signed my rights away. Family, his work and friends paid for funeral expenses. His best friend and his wife did not like me before and after my husband death. His best friend had a lot of say , respect and knew who to talk to about my husbands life ins. I asked if j could go with my daughter to sign papers at my husband work and I was NOT allowed. I have no income now do to long term mental issues , fibromyalgia , two fail back surgeries and much more. I live alone. My son is 19 now with no hs diploma he dropped out do to the murder of his dad and my daughter owns a big beautiful house and doesn’t talk to me. When I told her that I think fail play happened here or someone forged my name on the life ins papers she ran to my husband place of work in a hurry. To this day they won’t let me see the signature where I signed my right away as a wife over to our daughter. No one will talk to me. His place of work will not talk to me. His best friend that still works there will not talk to me. It’s been four yrs since my husband was murdered. He was my hs sweet heart we were soul mates. I would never guess my husband would not want me his wife to have his life ins knowing I did not have an income. I know in my heart that his best friend and place of work talked my daughter into forging my name so that she can get all of his life ins. My husband and our daughter never got alone. You can ask all family member and city and her friends and our son. She hated him since she was old enough to know what the word hate meant. He wasn’t even allowed to see our first grandson but three times in 7 months. I know my husband would not leave her all of our money. I had to sell thing ours to pay bills. We even paid her braces off at 18. Plz can h help me. I trying asking lawyers and no one will help me. The life ins company will not show me where I signed a waiver with them or his job. I didn’t not know he had life ins till after he died. It’s been 4 yr 8 months. I know they robbed me of my husband life ins. I live in Washington. Common law state. I now live on walfare something we never lived on when my husband was alive. I get free ins and only 197$ cash and food stamps. I’m so ashamed but I can not work. I’m applying for disability but that has taken over a year now. I can’t not get widows benefits till 67. I’m only 43. I know my husband would not leave me this way. Then I tried going after the man that took my husband from me he was only 36 🙁 at the time for wrongful death in 2014. No one told me I had three yrs to do so. I’m not a lawyer or know the law. If I knew I had only three yrs I would of got him for wrongful death. The man that killed my husband is a native and get monthly native checks even while in prison. How is that fair that I’m living on less then the monster who took my husband s life. My husband and I were not perfect but I know he wouldn’t want me living on welfare or without his money he meant to leave to me to carry on paying bills and support both of our children at the time. Something happened I know it. That monster gets more income the the wife of the man he murdered over a stupid bar fight. Can u help me or am I really out of luck and I really did get robbed of my life savings and my husbands money n
Reina,
We just realized that we didn’t post this response back in December.
Thank you for sharing your story. You have been through a lot of painful experiences over the past 5 years or so. My heart and prayers go out to you and your family.
From what I can tell, your husband had a life insurance policy from work that had an accidental death clause on it which doubled the death benefit of $65k, and he named your daughter as a beneficiary on that policy. When someone chooses a beneficiary (which can be changed at any time), this choice is recorded at the insurance company. To name a beneficiary requires the name of the individual and the social security number of them as well.
I understand you feel that his work and best friend forged his signature for a beneficiary change after his death. I don’t know of an insurance company that would accept a beneficiary change after someone has already died as it is the applicant’s (your husband’s) right to name a beneficiary and no one else’s right. Also, I have never heard of any lawsuit that has ever overturned a beneficiary designation after the death of an insured who was in a healthy frame of mind at the time of designation. So my best guess is that your husband did put your daughter down as the beneficiary of his life insurance proceeds prior to his murder.
For the life insurance policy, you would not have had to sign anything for your husband to name someone else as the beneficiary. A life insurance applicant has the right to name whomever they want as the beneficiary and no one else ever even needs to know their decision. The only caveat to this is that at the time of policy inception, there must be something called an insurable interest, but a daughter would be fine for an employer sponsored life insurance plan. Even though you were husband and wife, there wouldn’t have been any signature for you to sign away any rights if he chose to name your daughter as his beneficiary.
Since Washington state is a community property state, both of you own equally all the income you earned during your marriage and any property purchased with that income including the life insurance policy. Most likely his work policy was a term insurance policy and if that’s the case then the entire policy is community property. This does give you a right to 50% of the proceeds with the other 50% going to your daughter. I am not an attorney. It makes sense to get counsel around this as I am speaking from the experience of being an insurance advisor, not as an attorney who knows the specific common law clauses in Washington including the details of the law. I am surprised that attorneys have been unwilling to help you with this ordeal.
I would contact Office of the Insurance commissioner at http://www.insurance.wa.gov/. Their phone number to speak with an insurance expert is 800-562-6900. Someone there should be able to help you find a local attorney who may take your case.
I wish you the best and pray that time will heal these wounds.