How The Affordable Care Act Affects Life Insurance

The Affordable Care Act, also known as “Obamacare” went into effect on October 1 of 2013.  This bill changes the way that many people in the United States will purchase health insurance.  Perhaps you are wondering how the Affordable Care Act affects life insurance; the simple answer is, it does not.

The Affordable Care Act is not likely to have any significant effect on life insurance.  At this time, you might be asking yourself; what does the Affordable Care Act really do?  In essence, this act requires that every U.S. Citizen have health insurance, and offers government assistance to help low-income people pay the premiums.  Even though it is not required, obtaining life insurance could be a wise decision and it is necessary to compare life insurance quotes prior to deciding on a policy for your family.

Perhaps you are uncertain of the purpose of life insurance.  The purpose of life insurance is to replace the income that would be lost if you die.  If your family depends on your income, life insurance will help ensure that your loved ones have the money they need to live on until they can get back on their feet.  In short, life insurance gives you security.

There are two major types of life insurance, Whole and Term.  There are advantages and disadvantages to both types.  The advantage is that whole life is typically guaranteed to pay when you die, no matter when that is.  Unfortunately, this advantage comes at a price; whole life insurance is much more expensive than term for the same amount of coverage.  Term life insurance is different.  With term life, you agree to pay your premium for a set number of years, usually 15 – 20.  If you die during that span of time, your family gets the benefit.  If you do not die within that time, the insurance company keeps the money.

Many people have difficulty understanding the available options.  Is it better to buy whole life, and have a guaranteed payout or to buy term and invest the difference yourself?  Which provider and what options are the best fit for your family?  How much life insurance do you need?  The best way to answer these questions is to get the services of a qualified professional that you trust.  You should never invest in anything you do not understand.   When choosing a professional to work with, be sure that he or she takes the time to explain your options in terms that you can understand.  If a professional is unwilling or unable to do this, you should find a different one.

No matter how you feel about the Affordable Care Act, you can be certain that it will not change your life insurance needs.  If you have loved ones who depend on your income to survive, you should take steps now to be certain that they would have the money they need if the worst happens to you.  When considering life insurance, the choices can be overwhelming.  A competent professional can explain your options and help you make the best choices for you and your family.  If you do not currently have life insurance, you should probably consider it.  Start researching your options today.