Give your family something to fall back on.
The last thing you – or your loved ones – want to think about after the loss of someone close is paying the bills. Rather than wonder where the money will come from, know the answer with the AARP Life Insurance Program from New York Life. There's no medical exam, just three simple health-related questions. You can choose the coverage that's right for you. And designate whomever you like to be the beneficiary. Life Insurance is an easy way to make sure your survivors have peace of mind.
Meet your obligations.
Term Insurance pays a benefit if the insured dies within a specific period of time known as the term of the policy, which is where the name comes from. Terms of the policy tend to be rather broad, say from age 50-60. Term Insurance only covers you during the time you're making payments, so it's less expensive. Term Insurance, which as the name suggests lasts a lifetime, is commonly used to protect a specific financial commitment, such as mortgage, car loan, or tuition. There are four different types of Term Insurance:
Convertible lets you convert the policy to a Whole Life policy at any time. There's no medical exam, but your premiums may go up.
Term lets you sign on for a new term policy without a medical exam. The new premium may be higher, though, as you'll be older.
Level lets you pay the same premium every year for the length of the term and keeps the same benefits throughout. If you want to renew at the end of the term your premium may go up substantially, as you will have aged.
Decreasing pays a benefit that decreases in value over time, but keeps premiums at the same level throughout the term.
Insurance that lasts a lifetime.
As the name implies, Permanent Insurance lasts a lifetime. As long as you make payments on time, the coverage remains in effect, no matter what your lifespan is. And unlike Term Insurance, Permanent Insurance may have a savings feature that lets you build up a cash reserve you can use while still alive. It's more expensive than Term because it offers more features and because it definitely pays out a benefit, while Term may not. There are four major types of insurance:
Whole lets you pay a fixed premium for a fixed benefit. It has a cash savings features that may be able to provide you a cash reserve.
Universal adds some flexibility by allowing you to change the amount of your benefit if your needs change. Some changes may require a medical exam to approve.
Variable invests some of your premiums in the stock market, which may result in a larger cash reserve later on. Of course, there is also the possibility that the investments won't do well and you'll end up with less money. Most insurers will guarantee a minimum benefit on this type of insurance, but it's probably lower than you would expect.
Variable-universal combines the premium and benefit flexibility of universal life with the investment potential and risk of variable life.
A little knowledge goes a long way.
Like many other financially-related areas, deciding whether to insure yourself and with what kind of coverage is a decision that shouldn't be rushed into. Use these links to help you end up with the coverage that is right for you.
What kind of insurance do you need? Find out by answering some questions at www.bankrate.com
Use the interactive tools at moneycentral.msn.com and www.bankrate.com to figure out how much insurance you may need.
Find insurers in your state by clicking on the "Individuals" box on the Insurance Information Institute web site at www.iii.org. There are three rotating messages, so wait for the correct one before clicking.
Make sure the insurance company you select will be financially sound when the time comes to pay your claim using these services:
For state insurance information, visit the National Association of Insurance Commissioners at www.naic.org/state_web_map.htm
Order the Federal Consumer Information Center (CIC) guide to buying life insurance, "What You Should Know About Buying Life Insurance," at www.pueblo.gsa.gov.
Getting covered is easy.
It's easy to get the comfort and confidence of AARP Life Insurance from New York Life. There's no medical exam or lengthy forms to fill out. In fact, you only have to answer three health-related questions in addition to your identifying info, so you could be done in less time than you realize.
