Before you make the decision to purchase life insurance you must realize that there are options to choose from. In other words, you should first learn how it works. Single premium life insurance (SPL) is a life insurance policy that you can acquire by purchasing it with a lump sum of money paid up front. That’s it. There are no more premiums to pay after that. In return, the death benefit is guaranteed to remain funded until your death.
The traditional payment arrangement for life insurance is for the policyholder to make monthly or annual payments for the entire life of the policy. When you buy single premium life insurance, your lump-sum payment to the insurance company in exchange for the policy lasts your entire life. The initial payment, along with the interest the policy earns over the life of the policy replaces the standard premium payments the insured would be required to make under a traditional arrangement.
How to decide which carrier to buy from
There are many carriers that provide life insurance. You see it advertised on television from many of the larger corporations. You probably get pop-ups on your laptop or smartphone, especially if you search for insurance on the Internet. Simply choose the company from whom you want to purchase your SPL policy. Making your purchase from an insurance carrier that you already have other policies with may qualify you for a discount. Every insurance carrier offers a range of different SPL options at different costs, so doing some research can help you to decide.
You’ll need to fill out an application to determine whether or not you qualify for a life policy. The application will require you to give answers about some personal information along with your health history and some lifestyle information, for example, are you a smoker? You may also be required to take a physical exam. Then, an underwriter reviews your application and medical history to determine how much of a financial risk it would be to insure you. This may also affect the amount of the premium you will be required to pay. You’ll also have an opportunity to make a choice on investment options.
This is often a big decision, something you shouldn’t rush into. Speak to an agent that can answer all your questions and help you make an informed decision about single premium life insurance.