When I was younger, I used to be the shirtless headbanger at rock concerts – so I was not the type of person who'd ever thought about getting life insurance.
Things change, people age and put on shirts, and I got to a point where I had a wife and a family, and it was something I really needed to think about.
The whole process of buying life insurance was overwhelming at first, but I dove into research and found an excellent experience with Bestow.
Bestow provided life insurance for me in under 5 minutes and started at $5 a month.
I looked at sooo many companies first, though. If you know at the back of your mind that life insurance is something you need, keep reading.
Here are the 5 things you need to learn about life insurance before choosing a plan.
1. Term Vs. Whole
The first thing I kept seeing pop up was the decision between term or whole life insurance.
Term Life Insurance provides death benefits. It's purchased for a set time period, such as 5, 10, or 20 years.
If you pass while the policy is in effect, your beneficiary will receive the full amount you have set aside. It needs to be renewed once it expires, or it no longer applies. Bestow offers term life insurance for 2 year, 10 year, or 20 year terms.
Whole Life Insurance provides death benefits as well as a cash percentage that accumulates during the lifetime of the policy. It covers you for life and typically has higher monthly premiums.
2. What You'll Be Asked
Both types of policies typically require a health exam. However, it is possible to get a policy without one (very helpful if you don't like taking unnecessary blood tests!). Bestow's term plans don't require a blood test – you'll be required to submit your medical records and answer questions about your lifestyle, like your tobacco use.
3. Who Can't Get Life Insurance
If you're a rock climber or scuba diver, you're probably going to have some trouble. You'll also encounter difficulty or high premiums if you smoke or have certain chronic illnesses, like HIV.
4. The Cost
In general, whole life is more expensive. Bestow's premium was the least expensive starting point I'd ever seen – at $5 a month. Typically, a healthy younger person may see premiums of around $25 a month.
Also, big tip: if you're younger, it makes sense to get a policy now because your premiums will be lower. When you reach a certain age, it can become too expensive or even impossible to get life insurance.
5. Online Vs. Over the Phone
I was expecting the sign-up process to be super detailed and include many phone transfers between different people. Seriously, I was shocked when, after submitting my online application with Bestow, there was only a short wait followed by an approval! I didn't need to speak with a human being unless I wanted to (Gen X, here). Many companies will require phone calls and overwhelming paperwork, but only a few like Bestow are completely online and have the option to use the chat feature.
After all my research, I was confident Bestow was a good choice for me at this time in my life. Now that I'm signed up, I never have to think about it. This has been a huge weight off my shoulders that I didn't even know was there, and I'm so grateful.