Compare Life Insurance Quotes for the Best Rates

The one constant in life is change. Some changes are expected and pleasant, while others may not be. We can help you prepare your family for life’s unexpected events—such as an untimely death, serious illness or injury. Life insurance can help ease your family’s financial burden in times of stress. And the experts behind MoneyWizard have everything you need to better understand life insurance options—and help you secure a plan tailored to your budget and priorities.

What Is Life Insurance?

Life insurance is an important financial product that helps to secure the future of your dependents—usually spouses, children, or close family members. It is a legal contract between you, the insured party, and an insurance company.

What Does Life Insurance Do?

In the event of your untimely death, a good life insurance plan will offer financial security by covering final expenses and replacing lost income. Your beneficiaries will receive lump-sum payments after your death or after a given time period. The payouts can cover your debts uch as your mortgage, or provide money for your children’s college education.

Get the Best Life Insurance Rates

Your life insurance plan is an integral part of your family’s financial future. Bearing this in mind, it’s necessary to thoroughly research your options before committing to a life insurance provider. The wizards behind MoneyWizard.co can help you secure the best life insurance rates by comparing the available life insurance options. By considering the type of protection, your financial strength, amount of coverage, and the insurance provider to trust, we will simplify the decision making process for you. The wizards behind MoneyWizard.co will help you secure the best life insurance rates and help you protect your family’s future. 

Types of Life Insurance

The main types are:

Term Life Insurance

Term Life Insurance you for a limited period of time, usually 10, 20, or 30 years. It doesn’t accrue cash value; however, premium payments remain level for a predetermined period, after which after which they will increase gradually. If you die within the term, your beneficiary will receive a payout; if you die after the policy has expired, however, they will receive nothing. So what should you do if your term expires and you still need life insurance? You can reassess your options or purchase a new policy. If you are on a tight budget or expect an increase in your expenses—this life insurance option is best suited for you.  

Permanent Or Whole Life Insurance

Provided you adhere to the terms of the contract by paying your premiums in full and on time, this insurance product will cover you throughout your lifetime or until the policy matures. The premium payments remain level throughout the policy’s term; it is more expensive than term insurance but it offers attractive features such as  a cash value which may be accessed when you are still alive. Also, it allows you to borrow against your life insurance policy as collateral. 

Universal Life Insurance

This product offers more flexibility and it accumulates a cash value. Within certain limits, it allows you to tailor a policy according to your priorities by altering your death benefit and premium payments. As such, the premium payments and face amounts are flexible. If you desire control over the growth of your cash value, this insurance product is designed for you.

Benefits of Life Insurance

Term life insurance can:

• Help your family pay for daily expenses. 
• Cover the cost of services like childcare. 
• Cover support payments for divorced couples. 
• Cover your mortgage payments. 
• Pay off business debts, estate taxes, or fund buy-sell agreements. 
• Cover student loans.

Term life insurance is best suited for primary income producers, homeowners, business owners, and stay-at-home parents. 

Permanent or whole life insurance can:

• Guarantee financial support for your child. 
• Pay inheritance or estate taxes.
• Provide inheritance to your heirs. 
• Supplement retirement savings by providing supplemental income.
• Pay for funeral and final expenses. 

Whole or universal life insurance policies are best suited for high net worth individuals, those who want to provide inheritance to their heirs, and those who want to pay for their own funeral expenses. 

Life Insurance FAQ

How much life insurance do I need?

Other than your own priorities, goals, and financial considerations, your family’s needs should help determine the amount of life insurance for you to buy. Debts, expenditures, and saving for your children’s education must also be considered. To get a rough estimate of a plan to purchase, put into account your annual income and the number of years needed for your family to replace it. These factors will help determine the life insurance coverage that you might need.

How does life insurance work? 

Life insurance ensures that people who depend on your income for everyday needs are taken care of when you pass away. It is a contract between you and an insurance company. Depending on the type of insurance, you will be required to make premium payments throughout the policy’s term. After your death, the insurance provider will pay an agreed upon amount of money to your beneficiaries. Your beneficiaries can then use the money for whatever purpose they choose. 

Is life insurance taxable?

When an insured person dies, the life insurance proceeds received by the beneficiary are neither included in their gross income nor considered taxable; however, any interest received is taxable and should be reported as interest received. Also, payouts received when a permanent life insurance matures are taxable. 

Do I need life insurance?

If you have anyone that depends on you financially, it is recommended that you get life insurance. It will help you plan your family’s future by providing much needed long-term financial security. Even if you can’t put a value on loved ones, a personal life insurance policy can help secure their future. 

Can a life insurance policy expire?

This depends on the type of insurance policy. If you have a term insurance policy, the policy will expire when the selected time period ends. IWith a permanent, whole, or universal insurance policy, the policy will remain in force for as long as you make the premium payments on time and in full. This type of policy is designed to cover you for your entire life. 

Can I borrow from my life insurance policy?

If your insurance policy has a cash value—such as a permanent or whole life insurance policy,—you can borrow from it. Term life insurance, a cheap and suitable option, doesn’t have a cash value and you can’t borrow against it. A whole life policy has both a face value (also referred to as death benefit) and a cash value. The cash value acts as your savings account. Once the money invested increases the amount of the death benefit, the tax-free cash value can then be borrowed against. The insurance company will use your policy as collateral for the loan.