Tips for Buying Life Insurance in Colorado

Colorado term life insurance is the simplest type of policy to get.  It specifically covers death benefits only.  Your main decision is to decide on how long a term you want to buy and the amount of coverage you need to protect your family or business.

Term life insurance can also be used in lieu of mortgage insurance when you buy a home.  Banks are happy to sell you mortgage insurance but what they don’t tell you is that a term life insurance policy will achieve the same thing, the death benefit does not decrease, and is a heck of a lot cheaper.

Buying term life insurance is a snap.  You can check quotes online such as on my site to get a flavor of what it’s going to cost, although I would highly recommended that you speak with an independent agent such as me so I can help you to find the best possible deal.

Another reason why term life insurance is so easy to buy is that you usually don’t have to bother with taking a medical exam.  Mostly, you will just likely have to fill out a questionnaire.

Here’s one important tip to keep in mind when you’re trying to decide on how long a term to buy.  Life insurance always becomes more expensive as you age. So, if you think that getting a 10 year term is no problem and intend to renew with the idea it will cost about the same, then you’d be wrong because it will cost you a lot more per month.

You can use term insurance for a variety of ways and means and it can be especially important if you own and operate business or have partners.  Term insurance can be used as business insurance but it would be best to give a call so I can better explain how it all works and what types of coverage options are most suitable.

Permanent Life Insurance – Whole Life and Universal Life

This is your second option to buy when it comes to life insurance policies.  Unlike term insurance, permanent insurance comes into play for your entire life span.  There are 3 basic types of permanent life insurance policies which can be found in Colorado.

In Colorado you can choose from buying a whole life policy, a universal life policy, or a variable life policy.  The majority of people who buy permanent insurance usually opt for whole life insurance or universal life insurance, and we don’t even sell the third type anyway.

Regardless of the permanent policy you select, all of these policies are much more expensive to buy. The reason is that they not only pay out on death benefits, but they also have a cash value accumulation feature which accumulates over the life span of the policy.

It’s also a bit trickier to qualify for a permanent life insurance policy because almost every life insurance company will likely require that you take a medical exam.  These exams are quite detailed so if you have an underlying health condition then I strongly advise you consult with an independent agent like myself so I can explain what these health concerns might mean to you.

If you wondering what the difference is about these different types of policies, the main difference is that they vary when it comes to the cash accumulation portion of the policy.

It’s a lot easier to explain on a one on one basis but each company has their own slight variations of these policies so I won’t go into detail in this article, but check out my site as they are explained in more detail in other articles.

Colorado Life Insurance Benefits are Non-Taxable

That’s right.  Life insurance benefits are not taxable. Any benefits paid to your beneficiaries cannot be touched by Uncle Sam and is theirs to do with as they please.

We are one of these independent agencies, licensed with over 30 life insurance companies, so when you come to us for help, you’ll know the quotes we provide you are the absolute lowest prices available.  For more information or to get started with an application for Colorado life insurance, sign up for some quotes using our instant quote form on the right or call us at 877-996-9383.