Discover 8 Best Life Insurance for Low Income Groups

Introduction

Choosing a good insurance policy is all about looking into how affordable a plan is in terms of levying the subscription premiums on a period basis. At the same time, you must also look into whether you have attractive benefits in terms of insurance coverage the plan provides to you and your family members.

For instance, a life insurance policy may have add-on medical coverage in terms of looking into hospitalization bills or helping you do daytime procedures to clear your impending bills. Or, you may want an insurance provider to include children’s benefits as add-ons so that your kids get some kind of coverage against the plan you would want to choose. 

In a nutshell, you would want an insurance package with an affordable premium subscription while also providing the right kind of benefits for you and your family members.

On this note, let us discover the 8 best life insurance for low-income groups. Helping you get started further:

1. Term Life Insurance

Term life insurance policy is a type of insurance policy wherein the assured sum coverage is spread over a specified term. The insurers here make their premium subscriptions quarterly/ half-yearly or on a monthly scale. 

The policy term might be for a specific tenure comprising 5 years or even 30 years. The policy entitles the insurer to attain his policy redemption amount by the end of a term period as specified or allows the family members to attain the entire policy coverage money in the event of the death of the insurer. The money is rendered out whichever event happens earlier. In a nutshell, this is a life insurance policy for those of you who are tight on a budget. 

2. Guaranteed Issue Life Insurance

This is a simplified type of insurance policy that applies to all citizens without the need for performing complex paperwork. Here, no specific health questions are asked to insurance subscribers who would want to sign up with a guaranteed issue life insurance policy. 

As the paperwork is minimal and applies to all segments of a demographic population, the premiums that are to be rendered to a service provider may be higher on the cards. 

And, the coverage benefits for a Guaranteed issue life insurance applies for a specific number of years from the time you take the policy. 

Under a guaranteed issue health insurance, you can ask if the insurance provider includes cashless hospitalization or covers medical benefits for you as the insurance subscriber and extends the benefits to family members whom you put up as nominees for the insurance scheme. 

Affordable medical facilities or add-on cashless hospitalization supports low-income groups who would want to avail of this type of insurance policy.

3. Medicaid

This is a state-federal program that is primarily initiated to provide affordable and comprehensive forms of medical care for low-income groups and their family members. This is a comprehensive program that benefits impoverished and low-income groups on the whole.

You get lucrative healthcare benefits that state governments of low-income economies take up to build robust forms of healthcare amongst low-income groups of society. 

Under the Medicaid program, you are eligible to receive comprehensive coverage with respect to hospital bills, and doctor visits, and also allows procuring life-supporting immunization injections to prevent polio or Chickenpox flu amongst the impoverished groups of society and these injections are provided free of cost to children of families belonging to low-income groups facilitating preventive care and action.

4. Children’s Health Insurance Program- CHIP

This is a type of life insurance that is particularly aimed at growing children of middle-class income groups. Here, these individuals have income groups that exceed to makes them eligible for availing for the Medicaid program.

However, the individuals earn way too low to afford medical coverage via expensive medical care centers or hospitals out there. Now, we need a middle ground to cater to this kind of population. 

Here is where there is an affordable life insurance program that is perfectly tailored for middle-class income groups. We call this program ‘The Children’s Health Insurance Program’ or what can conveniently be abbreviated as CHIP.

Under a CHIP program, insurance members can benefit from low-cost health coverage for children at a select group of hospitals or healthcare centers that are affiliated with the CHIP program. You can also cover routine health-care checks for children including getting immunization injections for children between the age groups of 1-12 years.

5. Marketplace Insurance Under the Affordable Health Care Act

Market Place Insurance is a Subsidiary Organization that rolls out a range of insurance policies for lower and middle-income groups of the society.

Under the ‘Marketplace Insurance’, the coverage of plans is segregated via the Affordable Health Care Act as solemnized by third-world and growing economies on the whole.

Individuals can choose between health care or whole life insurance policies with affordable premium plans and get a quote or two.

Under Marketplace insurance, you can avail a range of universal life insurance plans with benefits or riders, and that includes providing health-care benefits to people belonging to lower or moderate income groups. 

6. Short-Term Life Insurance or Health Coverage

Under a short-term life insurance policy, you can avail of insurance benefits that cover a whole range of health benefits coupled with assurance of life.

Here, you have insurance providers who may give you short-term health or insurance policies that range from 5 to 10 years or so. You can choose premium plans depending on your range of affordability. 

You can choose lower-premium plans that provide health or life insurance coverage over specific years. These are short-term health coverage cum life insurance plans and are not meant for those of you who would want insurance coverage on a long-term basis. Therefore, you must pursue your insurance plans accordingly.

7. Community Health Care Centers

Insurance service providers get in touch with non-profit organizations that arrange health-care camps or free immunization camps that provide injections to children who are in the age group between 1 and 10 years. 

Therefore, insurance companies that have a tie-up with community centers or non-profit organizations commonly abbreviated as NGOs, can provide comprehensive healthcare insurance plans or life assurance policies to people who belong to lower groups or moderate earning strata of the society. 

Here, through low-income insurance providing scheme, you can avail a comprehensive range of insurance policies that are calibrated based on your income-earning capacities, therefore allowing you to apply for life insurance cum health insurance policies for you and your family members. 

8. Group Life Insurance

Companies or employment organizations have comprehensive tie-ups with life insurance and health providing companies to provide a wide range of insurance policies to employees who are working for the companies or employment organizations on the whole.

Life insurance and health coverage options are provided to employees irrespective of their caste, creed, or gender and with no medical examination performed for employees as such. 

With no paperwork, the life insurance and health coverage policies are awarded to employees wherein the premium subscription amounts are deducted from their paychecks.

In a nutshell, you can say that group life insurance policies are affordable within lower-income earning groups to a greater extent indeed. 

9. Simplified Issue Health Insurance Policy

With no questions asked and with minimal health checks that are performed on employees, the simplified issue health insurance policy is an option that can be availed by middle-class earning members on the whole.

Premiums under Simplified Issue Health Insurance policies are on the higher side. However, you can expect health coverage and a few other insurance benefits under the aforesaid category. 

Insurance Policies vs Financial Planning

Signing up for an insurance policy and financial planning go hand in hand. This is because you may never know when a contingency situation will crop up on your shoulders.

It can be a medical situation wherein you might have to dispense huge medical bills for your near or loved ones. Or, it can be the sudden death of an earning family member who has survivors who may have to continue with their livelihoods.

Therefore, taking a health insurance or medical policy helps you with long-term situations of combating a sudden medical emergency or a death scenario wherein the policy amount is reimbursed to family members by life insurance or health insurance companies. 

When you contemplate unforeseen scenarios and get yourself protected via insurance policies this is a kind of financial planning you pursue under your whim. 

Suggested Reads- Why is financial planning important for everyone

How do You Choose the Right Type of Insurance Policies

Here are pointers that help you figure out insurance policies that can be a correct fit for you or your family. Helping you through a run-down into the same:

1. Talk to an Insurance Advisor

You should strike up a detailed conversation with an insurance advisor who is well-experienced and has a thorough knowledge of how different insurance policies work. This way, you understand the pros and cons of different insurance policies that are showcased in front of you as such.

2. Comparison Cue Cards

You can also make comparison cues between premium subscription plans that are offered vis-a-vis the insurance benefits you avail from the same. When you find that a said insurance policy has all the benefits you are looking for and the premium subscription amounts are affordable from your pocket, then this is the policy you must be going in for. You can get in touch with a financial advisor or an investment planner to chart out plans for you. 

3. Checking for Options Online

By doing some bit of online shopping or researching a tad more on the internet, you can get good ideas on how different types of insurance policies have been curated by insurance-based service providers on the whole. You can look for insurance policies that offer you a wide range of benefits that can cover you or your family members.

4. Approach Insurance Company Offices in Person

You can pay visits to insurance firms that are located in closer proximity to where you stay. This way, you can have a look at pamphlets or brochures that showcase different types of insurance policies. You can also have a go-through on policy benefits these policies may award to insurance subscribers on the whole. This way, you get well-informed cues on what to look for while choosing the right insurance policy for you or your family members. You can also use insurance policies as investment options to double up your passive income-earning potential. 

5. Local Google Searches on Smartphone Devices

For those of you who are out on the go, using online Google searches can save you the dime or effort in locating insurance brands within your area or neighborhood that you reside in. 

Type in ‘insurance service provider near me’ or ‘Insurance advisor near me. You can activate local Google searches via your digital devices like iPads, smartphones, or tablets. 

This way, you save time and effort in locating insurance firms or locating advisors online. You can ask an executive advisor to visit you at home or get in touch with you via an online or virtual meeting wherein you address your queries on different insurance policies. 

The Bottom Line

Different insurance policies come to you with different types of benefits and coverage options that you must be on the lookout for.

You must also understand pertinent risk factors before you go in with insurance policies or sign in on the dotted lines.

Plus, you must understand the tax implications you have concerning the insurance policy you want to go in for. 

Frequently Asked Questions