The Essential Guide to Smart Life Insurance
Life insurance shouldn’t be complicated. Discover how Everyday Life is making life insurance accessible for everyday people.
By: Amy Beardsley – – Senior Writer at Everyday Life Insurance.
While there are many things to consider when purchasing life insurance, at Everyday Life, we don’t think you should buy a policy just for the sake of having it. Instead, this guide will walk you through how we use smart predictive insurance to customize your policy to your life.
Many life insurance policies are stuck in the past. You might get basic protection if the worst should happen, but it won’t keep up with your everyday life’s changing needs.
We used advanced technology to focus on smart life insurance that keeps up with your life, and this guide will walk you through what you need to know.
In this Essential Guide to Smart Life Insurance, you’ll discover how to know if you need life insurance, determine how much coverage you need, and the best way to buy everyday life insurance for everyday people.
What is smart life insurance?
To start, this guide will introduce you to smart predictive insurance. Smart predictive insurance is life insurance that fits you, your life goals, and priorities. Think about it: you rarely need the same amount of life insurance at 25 that you need at 55.
Because the coverage you need can change over time, smart life insurance calibrates your policy to match life changes and milestones as you age.
As your need goes down, the policy premium goes down, too.
That way, you’re not stuck paying for more life insurance than you need. This guide will show you how you can use the money you save for other financial goals, such as retirement, a vacation, or saving for a rainy day.
Compare that to the one-price-fits-all bulk coverage that most life insurance companies recommend, and you’ll see the difference.
Predictive Protection powers Everyday Life’s smart life insurance. Our technology automatically adjusts your policy to give you the right coverage at the right time.
It starts with our proprietary Needs Assessment Tool.
The tool analyzes your information using predictive intelligence. The result is a custom policy that adapts to reflect your life changes such as kids graduating, paying off your mortgage, or nearing retirement.
What should everyday people know about life insurance?
The most important take-away from this guide to life insurance is that buying a policy shouldn’t be complicated. If you don’t understand how a life insurance policy works, it’s probably not the right policy for you.
And that’s okay.
There are multiple types of policies and coverage options, and what works for your cousin or coworker might not work for you.
Most people struggle with evaluating their insurance needs to choose a policy that provides the right amount of coverage at a price that fits their budget.
You don’t have to worry about that with Everyday Life. We take life insurance to the next level by providing smart predictive insurance policies. We’re the only company in the industry to offer Predictive Protection that adjusts your coverage to fit your life.
What does that mean?
First, this guide will talk about how traditional life insurance works. Then we’ll walk through what we’re doing at Everyday Life to protect people just like you.
How life insurance works
At its most basic level, life insurance is a financial safety net that pays a benefit to your loved ones if you pass away.
When you purchase life insurance, your policy is a contract between you and the insurance company:
- You agree to make regular premium payments.
- The insurance company agrees to pay a death benefit to your beneficiaries when you die.
There are basically two different types of life insurance: term life and permanent life. How the policy works depends on the type you purchase.
- Term life insurance covers you for a specified amount of time. The coverage period is the “term.” Your policy might be a 10, 20, or 30-year term policy. Your beneficiary can receive a payout if you die during the term. If you outlive the contract, the policy has no value.
- Permanent life insurance is just that – permanent. If you have a permanent life policy, your beneficiary can get a death benefit no matter when you pass away. The policy only expires if you stop paying your premium.
You might be wondering if term life or permanent life is better.
But if you think about it, term life makes sense.
Life insurance isn’t a wealth-building tool. Its job is to protect you and your family against financial loss if you pass away unexpectedly, which is exactly what term life does.
It’s also the most affordable life insurance available.
Your policy covers you during your greatest financial need, usually when raising kids and paying down a mortgage. And you don’t have to pay an arm and a leg to protect your family.
What should Everyday Life Insurance do to protect people?
Life insurance should help you protect what matters most. And we take protecting people seriously, which is why we don’t offer bulk insurance policies.
Our smart predictive technology crafts a policy that’s specific to your situation. Here’s how it works:
- Answer a few questions from our Needs Assessment Tool
- Review your personalized recommendation
- Apply for your custom policy
The Needs Assessment Tool sets Everyday Life apart from other life insurance companies.
It has unique predictive intelligence that uses your age, health information, and financial information to design a made-to-order life insurance policy that can last up to 40 years.
A personalized policy like this used to cost hundreds of dollars and take hours of financial analysis to complete. Our Predictive Protection does it in less than two minutes, and the analysis is free.
What you end up with is a policy that is “stacked” according to your needs.
For instance, you might need $325,000 of coverage for the next ten years while raising your kids and building your savings.
Your policy could step down to $200,000 after ten years, which lowers your premium, too.
During the last five years of your term life coverage, your kids may be out on their own, and your savings would have grown to reduce your need for life insurance. Since you don’t need as much life insurance, your policy might drop to $100,000, and you’ll pay less.
We use policy stacking to design life insurance coverage that protects everyday people when they need it most. You don’t have to worry about updating your life insurance years from now.
When you set up your smart predictive policy, you have peace of mind knowing it will automatically update as time goes on. You save money because you’re not paying for more coverage than you need.
Everyday life insurance that everyday people need
At Everyday Life, our guide to life insurance includes designing policies for everyday people because we believe everyone should have access to life insurance.
But just because everyone has access doesn’t mean that everyone needs to buy a policy.
Life insurance replaces your “value” after you pass away. Your “value” is the financial support you offer your family, and it usually refers to your income. Life insurance is sometimes called “income insurance” because it provides your family with enough money to replace your salary once you’re gone.
There isn’t a one-size-fits-all answer to when you should purchase a policy.
Typically, you need life insurance if someone else depends on your income, but that isn’t always the case.
When you should have life insurance
If you have dependents, the general rule is that you need life insurance.
Dependents are usually children who still live at home or haven’t graduated from college. A dependent could be a spouse, sibling, or aging parent who depends on your income.
If someone relies on you for financial support, you should have life insurance.
Some couples also purchase a policy when they get married, especially if one spouse earns significantly more.
Keep in mind that stay-at-home-parents should also have life insurance. A parent who stays home contributes financial value to the family by caring for children, running errands, or preparing meals.
If that parent were to pass away? You may need financial support from a life insurance policy to hire a nanny or pay for daycare.
When you don’t need life insurance
Single people rarely need to purchase life insurance.
If you’re single, you’re less likely to have someone who relies on your income. Life insurance coverage is a must-have if you help support your parents, a sibling, or a life partner.
Even if you aren’t supporting anyone, a small policy could help cover your funeral expenses so your mourning spouse, family, or friends won’t have to worry about the cost.
As you reach retirement age, you may not need life insurance. Your children are grown and living on their own, and you’re already living on your retirement savings.
You may purchase life insurance in retirement to provide extra money for a spouse to cover medical expenses later in life, but it isn’t as crucial to your financial well-being.
What is the cost of life insurance?
The cost of life insurance is tough to pin down. Because companies tailor each policy to an individual’s needs, how much you pay can differ from one person to the next.
The type of policy you purchase can influence the price, and so can your age, gender, health history, and lifestyle habits.
Keep in mind that a life insurance quote is just an estimate.
It can give you an idea of what you might pay, but the cost isn’t set in stone until your application goes through the underwriting process. Underwriting is when a company reviews your information and analyzes how much risk it would be to sell you life insurance.
Don’t let that discourage you.
The financial industry uses underwriting to help make decisions based on risk, including whether to give you a mortgage, let you take out a personal loan, or open a credit card.
How Everyday Life Insurance can save you money
Term life policies are an excellent choice for everyday people and their families.
It protects against financial loss if you were to pass away unexpectedly, yet it is far less expensive than permanent life insurance.
Even though it’s less expensive, a term life policy from Everyday Life has significant benefits:
- Guaranteed coverage and cost
- Easy access to benefits
- Convertible to permanent life insurance
Plus, Everyday Life uses policy stacking to save you even more on the cost of life insurance.
Instead of a bulk-size policy, Predictive Protection creates a right-size policy for your circumstances and life goals.
Because your need for life insurance changes as you transition through different life stages, your coverage adapts to keep up with your everyday life. Thanks to Predictive Protection, your monthly premiums go down as your policy amounts adjust over time.
The result is significant savings.
The average person saves 25% right away, and you could see up to 50% or more in savings over the life of a policy compared to a flat coverage amount.
How much life insurance do you need?
If you’re like most people, you rely on a company’s online calculator to determine how much life insurance you need. Have you ever thought about how a company calculates your coverage amount?
Several common factors go into adding up your ideal life insurance:
- Income and earnings
- Marital status
- Number of dependents
- Standard of living
- Health history
- Current savings balance
Some companies will try to convince you that bigger is better.
Keep in mind that your premiums are closely tied to the amount of coverage you purchase: the bigger your policy, the bigger your bill. You want to make sure you have enough, but you don’t want to pay for more life insurance than you need.
Our calculator uses predictive technology to take the guesswork out of figuring out how much life insurance you need.
The proprietary algorithm uses policy stacking to get you the right amount of coverage at the right time, without it costing you a fortune.
If you’re curious about how our Predictive Protection works, check out our Needs Assessment Tool to see how much life insurance you need.
It’s risk-free – it takes about two minutes, and we don’t even ask for your email address or phone number.
Advanced Predictive Protection and your financial goals
When looking at life insurance, your needs assessment depends on the goals you have for your policy. Some goals you may have in mind might be:
- Covering final medical bills and funeral expenses
- Supporting your family’s standard of living
- Funding child care expenses for your children
- Making sure your business continues to operate without you
Your needs assessment also considers the balance between meeting your goals and managing your current financial obligations.
You care about your family and want to make sure they’re taken care of after you’re gone. But remember:
- Life insurance is a safety net, not a wealth-building tool.
- The more life insurance you buy, the more you pay in premiums.
- You don’t have an infinite supply of money.
If you purchase a life insurance policy that’s too big, you’ll have less cash available to achieve your other financial goals like saving for retirement, investing, or even buying a house.
That’s where Predictive Protection comes in.
Life insurance shouldn’t take away from your financial goals. When you take advantage of Predictive Protection, you get the right balance of life insurance coverage without sacrificing your current and future spending.
What if your life insurance needs change?
Most life insurance companies rely on a set-it-and-forget-it strategy.
You buy the coverage amount you need at the time and pay the same premium for the life of the policy.
However, as the ancient Greek philosopher, Heraclitus, once said, “The only thing that is constant is change.”
That policy you bought was an excellent choice when you signed the papers.
But what about now?
Your life has probably changed since then. And when life changes, your life insurance needs change, too.
That’s the beauty of smart life insurance.
Predictive Protection powers the smart life insurance policy you get with Everyday Life. The advanced technology processes your information to custom make you a policy that adjusts how much insurance you need at different stages of your life.
So when we say you can set-it-and-forget-it?
We mean it. Everyday Life is the only company in the industry that automatically calibrates your insurance coverage to fit your life.
Protect what matters most with a smart life insurance plan from Everyday Life
Life insurance is a financial tool that almost everyone should have in their toolbox. It can protect against risk by providing a financial safety net for your family if the worst should happen.
Life insurance shouldn’t be complicated. Some companies aren’t doing enough to give you the answers you need to make an informed decision.
But we’re here to help.
Everyday Life puts you first. We design our smart predictive insurance policies around your individual needs.
And if you get stuck or have a question? You can call one of our insurance specialists or start an online chat anytime, day or night.
How to buy Everyday Life insurance
Hopefully, this guide has shown you how life insurance can help you protect what matters most. If you’re ready to get a free quote, Predictive Protection can get you the coverage you need at the right time.
Here’s a checklist to guide you through getting everyday coverage:
- Open the Life Insurance Needs Assessment tool.
- Enter your age, income, number of dependants, and a few other details to allow our smart life insurance technology to assess your unique needs.
- Review your personalized plan and make adjustments to the coverage amounts and term length to further customize your policy. If you have any questions, contact a specialist at (888) 681-3811 or start a live chat from the website.
- Click the button for “Ready to buy? Apply now!”
- Enter your email address, name, and zip code. We also ask for your phone number to send a verification code for security purposes.
- Review the life insurance application from our underwriting partner. From there, one of three things could happen: (1) You could get instant approval, (2) Your application may need additional review, or (3) You’ll get an email with additional requirements to complete the process.
- Once approved, you’ll lock-in a rate based on your personalized coverage amounts and can complete the purchase online.