Young happy mother going through choosing the right insurance plan and communicating with her baby son.

How to Choose the Right Life Insurance Plan for You

Published June 8, 2023

We get it. Navigating the world of life insurance feels confusing. It's perfectly normal to get overwhelmed by the amount of information only to find yourself lost. That’s why our focus at Insurance Supermarket International is to make things simple. That way, not only do you feel informed when choosing the right life insurance plan, but you feel confident with your choice too!

In this article, we'll break down how to figure out which life insurance plan is right for you, with simple, straightforward tips. We'll cover different types of life insurance policies and show you how to find the coverage that will best protect your family and your peace of mind.

By the end of this article, you won’t feel intimidated by insurance plans anymore. You’ll be absolutely confident you're choosing the right life insurance plan for yourself and your family.

Introduction to Life Insurance

Death can be expensive. When someone you love passes away, you're left with a lot of financial baggage. For one, they may have been the main breadwinner of your family, or at least contribute a large portion of the household income. That means the income they were providing your household suddenly disappears. Or perhaps they have an outstanding mortgage or other debts to pay, of which the burden now get passed to you? Taking on this baggage can result in a sudden drop in the quality of life of your family. That’s the last thing you should have to worry about when in mourning.

This scenario happens all too often when the proper financial precautions aren't put in place. The point of life insurance is to make sure your loved ones aren’t financially burdened by your death. It offers your loved ones the financial protection they’ll need after you pass, and it’ll give you some much needed peace of mind.

It's important to remember that life insurance isn't just for your benefit; it's for your family's. To make the insurance selection process as smooth as possible, the best place to get started is by learning the different types of insurance plans that are available.

 

Parents holding their two sons standing in front of their modern home in Middlesborough, Northeast of England in summer. They are all looking at the camera laughing.

 

Types of Life Insurance Plans

Before choosing, it's important to understand the differences between each type of life insurance policy. There are only 2 main categories of life insurance: term life insurance and permanent life insurance.

Term Life Insurance

Term life insurance is the most basic life insurance option available. It's a policy that covers you for a fixed period of time. The "term" of your policy can vary depending on your provider. Some can be pretty short (~5 years) while others can extend for quite a while (20-30 years). Even 100 year term policies exist! (And we offer them!)

If you die during your coverage period, then your beneficiaries will receive a death benefit. Plain and simple. If you're looking to keep things straightforward, a term life policy might be the best choice for you.

There is a catch: your death benefit will only be available during your term. If you finish your term and make all your payments, your life insurance lapses, and your death will no longer be financially protected.

This means that there is an element of risk to term life insurance. If you outlive your policy, you'll end up losing money on it. On the flip side, term life insurance has much lower premiums than its counterpart, permanent life insurance.

 

Permanent Life Insurance

This is your second type of life insurance. As the name suggests, it's more of a commitment than a term policy. If you get a permanent life plan, you're aiming to stick with it for a long time.

Permanent life policies usually fall under 2 different categories:

  • Whole Life Insurance, which are lifetime policies that remain in effect until death. They offer guaranteed premiums and guaranteed death benefits, making them perfect for large assets that you plan to keep for the long-term.
  • Final Expense policies, which cover your end-of-life expenses, such as medical bills, funeral costs, and settling any outstanding debt you leave behind. Final Expense Plans are typically the ideal plan for those later in life and those who don't qualify for other policies due to age and/or health.

Permanent life insurance is all about reliability. You'll pay locked-in rates that you can plan around, and your coverage never expires (as long as you keep making payments).

But it doesn't end there. A permanent life plan is more of an investment than a term life plan. You're not just making payments toward a death benefit. You can use your plan as a financial tool by making tax-free loans which you can use to invest.

So why doesn't everyone go for permanent life plans? The extra reliability and features of these policies come with a premium price tag. If you choose permanent life insurance, you'll be paying a lot more than you would for term life (and maybe for longer, too).

 

Selecting the Right Life Insurance Plan: Your Needs & Goals

When choosing the right life insurance plan, it’s important to consider your needs and goals.

  • Do you need coverage for a specific period, or are you looking for something more permanent?
  • Are you looking to cover specific costs or protect your family's financial future?
  • What type of assets do you need to insure?
  • Would a medical exam likely result in your insurance application being refused or increase your premiums by an exorbitant amount?

Answering these questions will help you narrow down your choices to the policy that best fits your needs.

This is also why it's so much easier to decide on insurance when you first understand the differences between term, universal, and whole life insurance policies. Depending on the policy you choose, premiums and death benefits can differ significantly.

For example, term life insurance policies provide coverage for a specified period of time. On the other hand, whole life insurance policies offer more long-term protection. It’s important to research each type of policy and understand the key differences to make sure you are getting the best possible coverage for your family.

 

Older retired couple happy they've chosen the right life insurance plan.

 

Picking the Right Life Insurance that Fits Your Budget

So you understand the different types of life insurance policies—what's next? Now it’s time to start looking for a plan that gives you the coverage you want at a price you can afford.

Life insurance premiums vary widely from plan to plan. Once again, always remember to compare plans. And if you talk with an advisor, don't feel intimidated! Ask lots of questions and read the fine print. Getting the best coverage at the most budget-friendly price means you aren't paying for frills that don't benefit your recipients.

Carefully look through every part of your insurance plan. Understand the death benefits, policy terms, and any other features offered by the policy. Moreover, when comparing plans, make sure to evaluate each carrier's ratings and consumer reviews.

Term life insurance is generally more affordable than permanent plans during the policy's period. The problem is that they may not offer enough benefits for your specific needs.

On the other hand, permanent life plans come with all the bells and whistles you can imagine, but it might not be worth paying the extra money for all that.

In short, remember that it’s not always about finding the cheapest plan, and it's also not about getting the most expensive plan possible. When choosing the right life insurance plan, price is only part of the decision-making process.

You and your family will be better off if you pick a plan that’s best suited to YOUR needs and goals, rather than just focusing on picking your plan based on its price tag.

 

Choosing the right life insurance plan means finding a plan that fits your budget

 

What to Do After Choosing the Right Life Insurance

Identifying the right insurance plan is the hardest part of the process. Once you’ve done that, you can start to get things moving.

Though traditional insurance providers can take several weeks — or even months — to get coverage, these days, you can apply for life insurance from the comfort of home in less than 5 minutes! Either use our quick online form for speedy coverage, or talk with an experienced advisor over the phone.

Better yet, you no longer need to wait for a lengthy underwriting process. Now you can easily qualify for instant approval — no medical exam necessary. That's thanks to our team's ingenious AI-powered insurance technology that cuts out unnecessary bureaucracy. Simply put, you get the coverage you need faster than ever.

However you decide to apply, once approved for a life insurance plan, it remains active so long as you continue paying your premiums, or the term expires.

 

After you've chosen the right insurance plan, applying is the easy part!

 

Conclusion

Choosing the right life insurance plan can feel overwhelming and complicated. But with the right information, and an understanding of what finances your loved ones need covered, you can make an informed decision that protects the people you love most. So don't wait, take the time to do your research and find the life insurance policy that works best.

With Insurance Supermarket International, you don't need to be a professional to understand and benefit from life insurance. Our simple and straightforward approach helps make insurance easy and keeps your assets safe. Get the security and protection you need today—let us help you make the right call.

We make the process easy with simplified, practical plans, quick approvals, and a suite of guaranteed-issue, no medical exam products.

 


 

Say Goodbye to Insurance Jargon & Complicated Processes!

Insurance doesn't have to be intimidating and complicated. With Insurance Supermarket International, life insurance becomes easy. By helping you through each step of the process, we help you keep you and your family financially safe.

Let Us Help You Get Protection that Just Makes Sense.

Get Started Now with the Button Below.

Get Started

Like this article? You might also like these...

Why Final Expense Plans Are Right for You
Are you a person above 50 years old looking to get life insurance? Then Final Expense plans are right for you!
How to Choose the Right Life Insurance Plan for You
In this article, we'll break down how to figure out which life insurance plan is right for you, with simple, straightforward tips.
Is Your Employer’s Life Insurance Enough?
Group life insurance is great, but is your employer's life insurance enough for your financial needs? Find out all about it here!
Back to Blog