Taking the Stress Out of Life Insurance For Young Parents

Published August 4, 2023

NerdWallet found that 75% of people are hesitant about getting life insurance, with their main concerns being affordability and confusion over the different types of policies. What they need is help taking the stress out of life insurance.

As a busy parent, you may have these same hesitations. Insurance can be intimidating, with industry jargon, offputting convoluted product descriptions, and a myriad of different policy types.That’s where we come in.

In this article, we’ll focus on some of the key questions that young parents have about the life insurance process. Our goal is to answer these questions for you in a quick and simple way, so that you’ll feel much more comfortable when approaching the world of life insurance.

Stress-free parents with a baby

Where Should You Start With Life Insurance?

The world of life insurance is big. According to LIMRA, 46% of people are putting off buying life insurance because they find it too intimidating a process. Taking that first step can be intimidating if you’re going in blind.  But taking the time to understand the basics in a straightforward, stress-free manner could make all the difference for you and your family.

To get started, begin by creating a list of your needs and wants: things that you absolutely must have in your policy, and things that you’d like to have as a bonus. This helps you to avoid the temptation of being sold policies that may not exactly align with what you’re looking for. It’ll also help you eliminate providers quickly if they don’t offer you what you need.

Take the time to research life insurance companies and compare policies, and if you're unsure of anything, don’t be afraid to reach out to the various companies and ask them questions. A knowledgeable agent will usually be available to guide you through the finer details of life insurance.

When you begin researching various policies, bear in mind that there are two types of life insurance; term and permanent. Term life insurance provides coverage over a limited period of time, while permanent life insurance remains active until the policyholder's death. Generally, life insurance becomes more expensive with age, so deciding when to purchase a policy, according to your needs, is an important factor.

 

What Do These Life Insurance Jargon Words Mean?

Life insurance jargon can be a bit of a minefield. Trying to decipher between whole and term life insurance, or calculating the cost of premiums — it can all feel a little daunting. It's important to understand the basics of different types of life insurance policies and key insurance terminology, so that you can make an informed decision when choosing the right policy for your family.

To get started, we can look at a few common life insurance terms and see what they mean:

  • Individual policy: a policy that covers a single party. The death benefit is paid out when the covered individual dies.
  • Joint policy: a policy that covers two parties. The policy ends after the death of the second covered party.
  • Benefits: features that come with your policy. Policies have cash benefits, but there are sometimes more than just cash benefits in a life insurance policy.
  • Exclusions: situations in which your death benefit won’t be paid out.
  • Premiums: the amount of money that you pay in exchange for your policy.
  • Beneficiary: the person who receives the life insurance payout upon the death of the policyholder.
  • Payout/death benefit: the lump sum that is given to beneficiaries.
  • Term: for term life policies, your term is the determined period your policy is valid for. This can go from 5 to 30 years, depending on the policy.
  • Rider: an additional coverage you can add to your life insurance policy for an extra fee.
  • Waiting period: the amount of time you need to wait after purchasing your life insurance policy and when your beneficiaries would be eligible to receive your death benefit if you die (usually ~2 years).
  • Living benefits: benefits that are distributed while the policyholder is still alive (as opposed to death benefits).

Family of 4 feeling safe with life insurance

 

Is There Affordable Life Insurance?

A big pain point with life insurance is the price tag. A lot of people already have so much on their table that adding in life insurance costs can feel impossible. But affordable life insurance exists! And the good news is that the younger you are, the cheaper your life insurance will be. So it’s best to start now!

Life insurance prices can vary a lot from company to company, so make sure you compare providers when you shop around. Before looking at the policies they offer, you can look at the companies themselves. Companies that are more financially stable and have higher user ratings are usually a safer bet. But of course, your priority is in comparing the policies that are being offered and finding which company offers the best-suited policy for you.

Next is premiums. There are a lot of way to optimize your premium payments and get them as low as possible. If you are going for permanent life insurance, some companies offer annual paying premiums and term policies will offer quarterly or even monthly premium payment plans, so that financial burden is spread out and easier to manage.

Additionally, you can lower your premiums by lowering your risk as a client. It’s pretty simple: the healthier you are, the lower risk you will be deemed in the underwriting process. Getting in better shape and quitting smoking will do wonders for your premiums! On average, smokers pay between 2 and 4 times MORE in premiums than non-smokers do!

 

Who Can Help Me Take the Stress Out of Life Insurance?

We know that you’re busy enough as is. Between juggling your own job and taking care of your family, you don’t have a lot of extra time on your hands. With that in mind, going through all the steps to getting life insurance might be too much to handle. Knowing who can help you through the process is key to making it past the finish line.

The best place to start is to seek the help of a professional. Insurance experts live and breathe insurance, and with their help you’ll have a much easier time finding the right policy for you. With a professional, you can get help:

  • Figuring out what you need in a life insurance policy
  • Parsing through the many providers out there
  • Determining which kind of plan is best for you
  • Helping you comb through your contract to hash out all the details
  • Speeding up the whole process of acquiring a life insurance policy

The key to taking the stress out of life insurance is to create a streamlined process.  Traditional life insurance takes a long time to set up, with so much paperwork and inquiries you have to go through before getting insured. At Insurance Supermarket, we focus on a fast and easy process for our clients. With some of our plans, you could end up insured in 48 hours without ever having to leave your house!

 

Parents telling their son about their new life insurance plan

Will I Be Denied Coverage?

Going through all this trouble just to be denied in the end is a major roadblock for people. A lot of people think that you can do everything right and still be denied coverage because of the mysterious underwriting process. But that’s not the case! You can make sure that you get life insurance no matter what.

Just like we mentioned with affordability, eligibility improves the younger you are. If you’re still in your 30s or 40s, you’re very likely to be eligible for the majority of life insurance plans. A lot of denials come for older individuals who waited too long before getting a policy and are now deemed too high-risk for providers.

Some people are concerned about their eligibility because of their family’s medical history. If your family has a history of cancer or other serious health conditions, it can damage your eligibility for some plans. Luckily, there are several plans that don’t require medical exams or a detailed inquiry into your medical history. Simplified-issue plans have fewer eligibility requirements. There are no medical exams required or extensive medical history questionnaires to fill out. Make sure to ask your provider what simplified-issue options they offer.

If a simplified-issue plan isn’t enough, then guaranteed-issue plans have guaranteed eligibility.

 

Conclusion

There are a lot of questions that are on your mind when thinking about getting life insurance. With this article, we addressed a lot of the questions that were making you hesitate, and tried to help with taking the stress out of life insurance. With the knowledge you now have, you should feel confident about looking into getting a policy for yourself.

Remember that the best time to start protecting your family’s financial future is now. Now that your questions are answered, don’t delay any longer and find the right life insurance policy today!

 

Mother showing her daughter her new life insurance policy

Taking the Stress Out of Life Insurance By Answering All Your Questions!

Looking for life insurance should be a process that is straightforward and simple…and it CAN be! At Insurance Supermarket, we simplify the process by providing fast, transparent policies tailored to meet the needs of busy parents. Our experienced advisors are here to assist you every step of the way, so you can feel confident knowing you and your family are covered for all circumstances.

 

Get Insurance Answers — Get in Touch with an Advisor Today!

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