Answering five of the biggest questions about life insurance.

Life insurance is an important topic, though a tricky one. Firstly, it’s end of life stuff we’re talking about. It’s not exactly a pleasant topic. Second, it can just be confusing. Where do I get it? How much do I need? How much does it cost? Do I really need it at all? I’m talking with online insurance agency Haven Life today to answer five of the most pressing questions on the topic of life insurance.

A bit about Haven Life:
Haven Life is backed and wholly owned by MassMutual. The agency was founded by a dad after his frustrating buying experience. He wanted to make buying important financial protection for your loved ones as simple as possible. The result equals an easy, online experience for buying quality term life insurance.

How important is it to have life insurance?

Life insurance becomes important when you have people in your life who depend on you financially. That could be a mortgage you share with your spouse or having young children in the house. If a life insurance policyholder were to die, their beneficiary would receive a lump sum payout in the coverage amount purchased that serves as a financial safety net for your loved ones. Called a death benefit, those proceeds could be used to help pay for the mortgage, other shared debts, childcare and the many other expenses we all have.

Though unpleasant, you have to consider: without your income, how would your family fare? Furthermore, while a stay-at-home caregiver may not have an income, imagine hiring someone for that job were you to lose yours. Expensive! (Us stay-at-home caregivers are priceless, I tell you! Chef, babysitter, cleaner, and more all rolled into one!)
How much life insurance do I really need?

The standard rule of thumb is 5 to 10 times your annual income, but that doesn’t always apply for primary caregivers, for example, which bring a real financial value to the household. Haven Life has a life insurance calculator to help you gauge your own needs. Some factors to keep in mind include replacing your income, health care for a non-working partner, debt, college education, social security, childcare, etc. A calculator can do all that math for you and will even tell you if you don’t need coverage. And remember: generally speaking, both partners should have coverage in place.
What are the different types and which is right for my family?

There’s term life insurance, permanent life insurance, there’s indexed universal, accidental death, and more. Two common types you have probably heard often, though, are term and whole.

Term life insurance lasts for a fixed period of time, typically 10,15, 20 or 30 years. It provides affordable coverage for your family when they need it most– until the kids are out of college or the mortgage is paid off. You pay a premium each month, and if you die within the term length, your beneficiaries will get a financial payout in exchange for the monthly payments. Your monthly rate is locked in and will never change during the policy’s coverage term. Term life insurance is what Haven Life offers since it’s often more of a fit for many young families. For instance, a healthy 30-year old woman can buy a 30-year, $500,000 Haven Term policy issued by MassMutual, starting at about $30 per month.

Whole life insurance, on the other hand, is coverage that lasts for the rest of your life and has a cash value that can potentially grow over time. This makes sense for those looking to include an insurance product as part of their long-term financial plan or who has an individual relying on them permanently. The same coverage example as the healthy 30-year old woman above could easily could cost anywhere from $400 to $500/month. You can learn more on the differences between the two and what would suit your needs best on our blog.

Isn’t obtaining life insurance really complicated?

It can be! But Haven Life has simplified the process so that it’s easy to understand your needs, get a quote and apply for term life insurance coverage online. (And they’re doing a pretty great job). Here’s what you can expect:

Choose the coverage option that works for you.

Apply online. It’ll ask you questions about your age, health, lifestyle, and medical history to price your policy. Once submitted, your application will be processed in real time to determine eligibility and your policy rate. Some will qualify for instant approval and coverage is instantaneous!

Take a medical exam, if necessary. The majority of Haven Term applicants will need to take a medical exam to finalize their coverage and rate. In some cases, though, eligible applicants may be able to be instantly covered. You’ll be notified if an exam is needed once the application is submitted. Haven Life aims to make the medical exam as simple as possible, so it can be taken at a time and place of your choosing.

If approved, you simply need to make your monthly premium payments, which are automatically drawn from your bank account, and you’re covered. The Haven Term policy has guaranteed level premiums for the duration of the term, so your monthly rate will not change and now you can enjoy peace of mind.

How much does it really cost?

It varies person to person. The cost of a policy depends on your age, health and how much coverage you are purchasing. It’s important to buy a policy the younger and healthier you are so you can lock in lower rates for the next 10-30 years, based on the coverage term you chose when applying for the policy. I just put my own info into this life insurance calculator. I included 3 kids (Lindsey, Parker, and Anders) since those three are still home full time and considered true dependents, a full-time working spouse, Steve’s age, and a few other details. Here’s what it recommended for me a 34 year old woman in excellent health: $750,000 for 30 years, which would put my rate somewhere between $64 (excellent health) and $120/month.

That’s the long and short of it. I love that Haven Life makes life less hard with a user-friendly website and without a bunch of hoops to jump through in order to be insured. Our lives are full of daunting tasks, so why not make one a whole lot easier? For more information on term life insurance visit their website, it will only take a moment to estimate your rate.

This post is sponsored by Haven Life Insurance Agency. All opinions are my own.

Haven Term is a Term Life Insurance Policy (DTC 042017 [OK1] and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. Policy and rider form numbers and features may vary by state and may not be available in all states. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Our Agency license number in California is OK71922 and in Arkansas, 100139527.