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By LAUREN CORONA
Some life insurance policies won't payout if you're killed while engaging in high-risk activities, such as riding a motorcycle or skydiving.
Choosing the right life insurance policy gives the family left behind a financial safety net in a difficult time. You can go on with your day-to-day business safe in the knowledge that your loved ones will be provided for if an accident or illness sadly cuts your life short.
It's important to consider what you need from a life insurance policy, such as its term and level of coverage. Read on to find out about all this and more and to see our top life insurance providers, including Ladder, which offers adjustable coverage.
The term of your life insurance is the number of years before the policy comes to an end and you're no longer covered. Terms are usually between 10 and 30 years, but you may find a handful of policies with longer or shorter terms. If you die within the term of your policy, your named beneficiaries receive a payout. You can also buy permanent life insurance policies that cover you for your entire life, but these are more expensive and can come with some exclusions.
Coverage is the amount your policy pays out if you die within the term. This is usually somewhere between $50,000 and $10,000,000, but some specialist insurers deal with even larger coverage amounts. When deciding on coverage level, consider the financial obligations of those left behind. You might want adequate coverage to pay off your mortgage and any other debts, get your kids through college, and cover your family's living expenses for the next five to ten years — all individuals have their own coverage needs.
Some life insurers require you to have a medical exam before providing coverage. Others take your word for it on medical conditions or lack thereof but don't expect to be covered if you lie on the application form.
This type of life insurance returns your premiums paid in full if you don't die within the term. This means you won't lose out but the return of premium policies costs more.
Life insurance premiums vary widely depending on a range of factors, including your age and health when taking out the policy, the term, and the amount of coverage. Expect to pay anywhere from less than $10 to over $500 per month for life insurance.
Lauren Corona is a writer for BestReviews. BestReviews is a product review company with a singular mission: to help simplify your purchasing decisions and save you time and money.
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