What type of life insurance do you need?

A person who has a family often values his/her family above all others. He/she makes it a point to prioritize the needs of his/her family and ensures that they will be protected and well-taken cared of at all times. He/she even provides his/her family protection even after his/her death. This can be done through availing of a life insurance policy.

There are many types of life insurance policies to choose from that may confuse the buyer and even the insurance agent. Knowing the important information on the different types of insurance policies may help the buyer choose the perfect life insurance that will help protect and provide his family in the future in case of his/her demise.

The types of life insurance policies may differ in the benefits that they provide the family of the insured after that person dies or may differ in the amount of premium paid for. Here are some of the life insurance policies to choose from:

• Instant Term. Instant term life insurance is a life insurance policy that provides the buyer with an instant insurance immediately after he/she gets qualified for it. Being qualified for this type of insurance however may not be as easy as it seems. Buyers should first undergo a compulsory medical exam so that previous illnesses are evaluated. Most of the times, life insurance companies will evaluate what illnesses or diseases a potential insurance buyer has at pre-screening and then they will determine if these can be covered by their insurance policies.

Term life insurance policies are considered inexpensive in terms of premiums paid. You can get cheap term life insurance quotes that will suit your needs. You can choose a low cost life insurance from among the 5, 10, 15, 20, 25 and 30 year term policies. Just remember that if you choose the longer term policies, you will pay a lower monthly premium rates. However, opting for the longer term policies such as the 25 and 30 year plans may be ideal for the younger insurance buyers and those that are just starting to have a family.

Many would suggest that the best policy to buy is the 10-year term life insurance policy for two reasons. First, the ten-year term is not as long as the others and that the monthly premiums will not be as high as compared to the 5-year term. Secondly, you can always renew a 10-year life insurance policy if the first one has already matured. This way, you can increase the amount of benefits that you and your family may receive in the future.

• Guaranteed Issue Life Insurance. Guaranteed Issue life insurance policies are insurance policies that are given to policy buyers immediately without the necessary compulsory pre-screening medical examination. Also referred to as life insurance no exam, this policy has its advantages and disadvantages.

The main advantage of availing the guaranteed issue life insurance policy is that you do not have to pass the pre-screening medical exam in order to avail of this since a medical exam is not needed at all. This means that a person having pre-existing medical conditions can also be covered by this type of life insurance policy even if he/she did not qualify for the other types of policies. This type of insurance policy is ideal for people who are in high-risk occupations such as being in the police force, fire fighting squad, mixed-martial arts arena or any other job that faces life-threatening risks at all times. People who have poor health, such as those belonging to the obese demographic, will definitely benefit from this type of policy.

Although it has its advantages, guaranteed issue life insurance policies have its disadvantages. Since it requires no medical pre-screening and is issued without questions asked, the premium payments are expensive and are based on the age and the gender of the insurance buyer. Another disadvantage of this type of policy is that it only gives out small death benefits to the beneficiaries of the insured person. The third disadvantage is that insurers or insurance companies that offer guaranteed issue insurance have a death benefit clause that allows the insurer to refund the premiums paid by the insurer rather than pay the entire death benefit if the insured individual dies within the first three years of being covered by the insurance policy.

In order to leave your family provided for even after your death, you must choose wisely what insurance policy will be best for you.