Life insurance is a valuable investment that protects your loved ones, and you can buy it any age. In fact, age is used to determine your premium rates, so you don’t want to wait until you get older to purchase a policy. However, lifestyle and health risk also determine premium rates, so if you use tobacco, then your premium rates will be higher. Also, if you have a terminal illness like cancer, you can purchase a life insurance policy. In fact, guaranteed issue policies are designed to insure people with terminal illnesses.
Once you’ve decided you’re ready to purchase a policy, you must determine if you want a term or whole life insurance policy. Whole life policies protect you until death and build cash value over time which you can take as a payout.  However, whole life policies are more expensive than terms policies that protect you for a designed period like 20 years.  But, term life policies are cheaper than whole life policies. Also, if you participate in an employer sponsored policy, understand that policy will terminate once you are no longer employed with that company and most policies are not transferable. Be prepared to take a medical exam because most insurers require these exams to assess risk. But, policies that require medical exams are cheaper than policies that don’t require them.
Before you buy any life insurance policy, be sure to review the company on A.M. Best Stability Rankings to make sure it’s reputable. Now that you have learned the basic of life insurance, take the following life insurance quiz to assess what you’ve learned.  And let Health IQ and their team know what you think of the quiz in the comments below, or try one of their related quizzes Life Insurance: Quirks and Use Cases, Life Insurance 101, or Life Insurance: Tips on Reducing Your Costs.
About Health IQ
HealthIQ’s mission is to improve the health of the world. In pursuit of this mission, they’ve created over 2,000 Health IQ quizzes and worked with innovative insurance companies to create financial rewards for health conscious people. To date, Health IQ has helped thousand triathletes, vegans, runners, and other health conscious people secure billions in life insurance coverage, and they hope to expand to other financial rewards in the near future. To learn more about Health IQ’s life insurance financial reward for health-minded people, speak to an Health IQ agent today.
