Q – I am coming to traveltruth because I would love to get the bottom line on insurance. I’m a reader, and I organize every aspect of my trip. I’ve been traveling since my wife and I retired eight years ago and it seems that all my plans fall into place until it comes to the travel insurance. The online advice I see tells me I should price compare on sites like squaremouth.com and insuremytrip.com. I’ve tried that but they seem to be sites that rate insurance companies based largely on pricing. Any direction you might provide on this subject would be appreciated. I want good insurance although I hope I never need it.
A – OK – here is the bottom line:
#1 – Never, ever purchase insurance online. You always want a human advocate for something as personal as insurance coverage.
# 2 = Never purchase the cheapest policy. This is one product you should never buy on the basis of price.
# 3 – Ask your travel consultant why they are recommending a particular insurance company or plan that includes medical and Life Insurance
Which type of life insurance you have is going to have one of the biggest impacts on how much you pay in premiums. They each offer different types of coverage, and, as you could probably guess, more coverage equals more money. But life insurance is slightly more nuanced since there are so many different ways of purchasing it, although the general rule of thumb is that term is cheaper than whole.
Here you can find a short description of each of the different life insurance policies available. Average prices will be discussed later as they depend heavily on other factors.
Term Life Insurance
The most popular type of life insurance is term life insurance. This is life insurance that will provide a lump sum (known as the death benefit) to your named beneficiary in the event you die. However, with term insurance, your policy is not unlimited. It runs for a pre-determined “term,” and it expires when that term is over. For detailed information about child life insurance visit azmoney.co.uk.
Term life insurance policies can be bought for as little as five years and as many as thirty. They are designed for people who want to be covered in the event something happens to them before their dependents (in most cases their children) can take care of themselves.
For example, a couple in their early 30s with two young children might buy a 20-year term policy to make sure their kids will be taken care of in the event one or both parents die before the kids become adults.
Again, it’s a bit morbid to think about, but term life insurance makes a ton of sense for people who have dependents. However, after your term is over, you will no longer need to pay premiums, but you will also no longer have a death benefit.
Renewable Term Insurance
Some term life insurance policies are renewable, meaning you can opt to purchase them again after the term has expired. But this does not mean you are guaranteed the same rate.
In fact, most insurance companies will probably require you to undergo a new medical exam, and this, plus the fact you are anywhere from 10 to 30 years older than you were when you bought the policy, means you can expect higher premiums when you renew your policy.
Level and Decreasing Term Insurance
Something else that can affect the price of your term life insurance premiums is whether or not you have a level or decreasing policy. In level policies, your death benefit remains the same throughout the entire life of the policy. This means if you buy a $1 million, 20-year term policy and die on year 19, the payout will still be $1 million.
With decreasing term policies, your death benefit decreases over time, usually in one-year increments. The benefit of this is that you will likely pay lower premiums, but you are assuming more risk on your own by reducing the value of your policy each year of the term.