A Buyer's Guide to Smart Life Insurance Shopping

By B. E. Conrad

Insurance Shopping - Homeowners' and Renter's Insurance - Auto Insurance - Life Insurance

Long Term Care Insurance

Many people do not like to think about buying long term care insurance, and it is easy to understand the reluctance. Nevertheless, it is important for couples and families to openly and honestly discuss the need for this important form of insurance coverage. The best time to shop for a long term care policy is when you are young and healthy, so it is important to start thinking about this coverage as soon as possible.

When shopping for a long term care insurance policy, it is important to look carefully at the various benefits each policy provides. It can be difficult to compare these insurance packages, since each one may offer different levels of coverage. Some important benefits to look for include coverage for in home care, coverage for care by registered nurses and other professionals in the home, and coverage for various rehabilitation and physical therapy services.

The benefits within the a long term care insurance policy will generally be expressed as daily dollar amounts, such as $100 per day for nursing home care, or $75 per day for skilled in home nursing care. When shopping for such a policy it is important to check with nursing homes and skilled nursing care facilities in your area to determine the going rate for the services covered in the policy. This important step will help you determine the optimum level of coverage for your needs.

Long term care insurance is sold by a number of different companies, including many life insurance companies. In addition, such policies are often available through various senior citizen organizations, fraternal organizations, employers and even some retirement communities.

Life Insurance

Like long term care insurance, life insurance is another subject most people would rather not talk about. Even so, life insurance is essential for protecting your family in the event unforeseen circumstances occur. Life insurance is a good way to plan for the future while providing your family with much needed peace of mind.

Life insurance is a complicated and difficult subject, and there are many different life insurance policies on the market. Some of these policies provide coverage for a lifetime, while other policies have a specific term attached and must be renewed upon expiration of that term of coverage. In addition, there are policies that allow for the gradual buildup of a cash value, combining life insurance with an investment vehicle.

Term Life Insurance

Term life insurance is the easiest form of life insurance to understand, and for many people it will be the best choice. As the name implies, term life insurance provides coverage for a specific period of time. If the person being insured dies within the time period covered by the policy, the specified death benefit is made to his or her beneficiary. If the insured remains alive at the end of the term, the coverage expires.

Permanent Life Insurance

Unlike term insurance, which provides coverage only for a specified period of time, permanent life insurance is designed to cover the insured for life. This type of life insurance typically combines a standard death benefit with some sort of savings component.

Whole Life Insurance

Whole life insurance also remains in effect for the life of the insured, and the premium payment policy varies from plan to plan. While some policies require that premium payments be made for the life of the insured, others allow policyholders to pay premiums for a shorter period of time, such as 20 years, or until the policyholder reaches the age of 65. Naturally, the monthly premiums will be higher for those policies that require payments for a shorter period of time.

Universal Life Insurance

Universal life is another life insurance product with a strong investment component. The premium paid will go first toward paying for the cost of the insurance policy itself, with the remainder invested on a tax deferred basis. This type of policy typically provides a guaranteed minimum interest rate on the money that is invested.

No matter what kind of life insurance coverage is right for you, it is important that your life be adequately insured in order to allow your surviving family members to live the lifestyle to which they have become accustomed. In most cases working people should purchase life insurance coverage equal to between 15 and 20 times their annual salary. At first blush this amount may seem excessive, but in fact this amount of coverage will allow your survivors to invest the proceeds safely, while providing enough investment income to replace your annual salary.