How Your Health Impacts Your Life Insurance Needs

How Your Health Impacts Your Life Insurance Needs

When it comes to your health, there is a lot of advice out there. But what many people forget to realize is that your health is not only about you, but those you leave behind.

Can your family afford for you to be gone?

I mean, not just financially but… Can they handle the loss?

There's a simple way to prepare for the worst. Educate yourself on life insurance and how it can protect your family and estate by checking out this blog. Let's get started!

I. Life insurance can provide a way for you to protect your family if something happens to you.

Life insurance is an important way to protect your family. If something happens to you and you don't have life insurance in place, it could be devastating for your family. When you die without life insurance, the costs of burial or cremation may be too much for your loved ones to bear, especially if they're not financially stable.

II. The purpose of life insurance is to help beneficiaries pay for expenses, like housing or paying off debt, in the event of your death.

In other words, you can have a plan in place to ensure that your family and/or estate are taken care of – even after you’re gone.

The cost of living is high and rising every year. There are many expenses involved in keeping a household running, including mortgage payments, car payments, credit card bills and more. In addition to those regular bills, there are unexpected expenses that can come up at any time: medical bills from an accident or illness; funeral costs when someone dies unexpectedly; college tuition for children who were not able to complete their education before passing away; and more!

If these costs were not covered by another source (like an inheritance), then it could put your family into debt—and even ruin them financially if they don't have any savings set aside for these types of emergencies. Life insurance helps protect against these situations by providing funds for the beneficiary(s) until they can get back on their feet again after losing their loved one(s).

III. A living will is a legal document that details how you would like your medical care handled if you have an incurable injury or illness and cannot speak for yourself.

This can include whether or not to be put on life support, or how medical decisions should be made for you if you are incapacitated.

If you have children, making sure there is a living will in place can be especially important. A living will can help ensure that your wishes are followed, even if your children disagree with them. If there is no living will in place, then your children may be able to make decisions on their own or with the help of others—and this can lead to disagreements within the family.

If you have an estate worth more than $50,000, then it's also a good idea to have a will in place with an executor named in it. This person will be responsible for taking care of your estate after your death, including distributing assets according to your wishes. Without this step taken beforehand, there could be disagreements over who should take responsibility for this task—leaving some of those assets unclaimed and unavailable to loved ones who need them most!

IV. There are two major types of life insurance – term and permanent.

In life insurance (like most financial instruments), there are two major types of policies – term and permanent. While each offers different benefits and disadvantages, both are ways to protect your family financially should anything happen to you. Your choice of which policy type is right for can be based on a number of factors, including whether or not you smoke, your health problems, past illnesses/surgeries, occupation, age and other lifestyle choices.

• Term life insurance gives you coverage for a set amount of time (usually 10, 20 or 30 years), and once the term expires you may be able to renew the policy.

Term life insurance is a popular option for people who want the security of knowing their family is protected in the event of their untimely passing. It's also a good way to help cover funeral costs, outstanding debts and other expenses that can come up when someone dies.

Once the term expires, you may be able to renew the policy. Renewal is usually possible as long as you keep paying premiums and your health hasn't deteriorated significantly from when you originally applied for the policy. The premium amount will be different for each renewal because it's based on your current age and other factors.

Term life insurance can be purchased in increments of one year at a time so you can adjust coverage based on your needs over time. For example, if you have young children who need financial support for college tuition in 10 years, you might opt for a 20-year term with no cash value (which means the policy will never build up any value). By contrast, if your children are older and have already graduated from high school by the time they need help paying for college, then you may want to purchase a 30-year term with some cash value so there's money available as a backstop.

The best part about term life insurance is that it's affordable—in fact, most people can purchase a policy with just $100 per month (or less). Term life insurance doesn't require health exams or any other medical tests, so anyone can get this kind of coverage without having to worry about passing an exam first or paying more money later on down the road because they have health issues like diabetes or high blood pressure (which would make them uninsurable).

• With permanent life insurance, your policy lasts as long as you keep paying the premium.

Permanent life insurance is a type of policy that lasts as long as you keep paying the premium. This means that, unlike term life insurance, it does not have a specific time limit or expiration date. As long as you continue to pay the premiums for your permanent life insurance policy, it will remain in effect.

It's important to know that there are different types of permanent life insurance policies. Some are designed to cover specific expenses (like funeral costs), while others offer lifelong protection against financial loss in case something happens to you or one of your dependents. The amount of coverage offered by each type varies based on age, health history, location and other factors.

You can also choose to increase the amount of coverage whenever you want without having to take another physical exam or go through a health questionnaire. This means that if you have been paying premiums for several years and then get sick or injured, you won’t be unable to make any changes to the policy later on because it will not accept any changes after a certain amount of time has passed.

V. The longer the term length, the more expensive the policy may be.

If you're looking to buy a life insurance policy, you'll want to consider the term length. That's because when you buy a life insurance policy, you're essentially paying for an agreement between your insurer and yourself that they will pay out to your family or estate if you die while the policy is active.

If you die after just one year of being insured (in other words, within 12 months of taking out your policy), then it's highly unlikely that any money will have been paid out at all, so there won't be much risk involved for your insurer. That means they can offer a very low price for that level of risk—which is why short-term policies tend to cost less than longer-term ones.

But as time goes on, more money has been paid out by your insurer and there's more risk involved for them if something happens to you (the insured). So they need to charge higher premiums in order to make up for that increased risk—which is why long-term policies tend to cost more than shorter ones.

KEY TAKEAWAY:

Whether you choose a term policy or permanent policy, the best advice is to do it early. Life happens eventually. There's no guarantee that tomorrow will be as easy and fun-filled as today. Take stock of your finances, and choose the right life insurance plan for you and your family.

Book an appointment with E.D. Bellis to learn more: calendly.com/edbellis

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