If you're in the market for affordable life insurance but want to ensure you get the best possible coverage for you and your family, read this article to make sure you're getting your money's worth!
Choosing The Right Life Insurance Plan
Interested in buying permanent
life insurance,
but afraid you may not buy the right policy that would fit your personal situation? Buying insurance is like renting a product to help you financially in case something unexpected happens. Most permanent life insurance includes universal, variable, and whole life insurance. These policies hold a value that fits most individuals' needs. Here are some tips to help you find the policy that will fit your lifestyle and family needs.
Evaluate your families lifestyle and needs when determining the amount of life insurance you purchase. Everyone has individual life needs that will need to be addressed in the event of a family death. You must make sure that the amount of coverage is enough to care for your loved ones should this occur.
Pay your premiums promptly. If the holder fails to pay the monthly premium on their insurance term, or if they decide to stop making payments before the whole life plan gains any value, they will lose the policy. They will also be forced to get a new policy and the new policy could be more expensive. This can especially be true if they have aged or fallen into poor health since their policy payments stopped.
Compare your group life insurance against other policies. Group life policies, usually provided by your employer, may not always be the least expensive option. The rates are set based on averages -- average age, average health and other important risk factors that may not apply to you. If you have excellent health, shop around to see if you can get better rates elsewhere.
Term life insurance is a more affordable option for life insurance. It only covers you for a set period of years; it is usually sold for 10, 20, or 30 year periods. A term life insurance policy is usually much less expensive than a whole life insurance policy per month.
Buy the right amount of life insurance to cover all of your living expenses and specified needs. Skimping on life insurance is not a good idea. Term insurance, especially, is very affordable, so make sure you get as much insurance as you need. As a rule of thumb, consider buying insurance that equals approximately 6 to 10 times your income.
If you are considering purchasing whole life insurance, keep in mind that this insurance is more expensive, but it will cover your entire life span. If you live to be 100 years of age, you will still have coverage to benefit your family left behind after your death. A term life policy is effective only for a determined amount of time and will expire eventually. Keep in mind, a term life policy is usually less expensive and more affordable than a whole-life insurance policy, and you have the option to renew once the policy runs out.
A convertibility feature is a helpful tool. It will allow you to convert your policy to a permanent one if you need one. You just have to make sure you do this before your term expires. This will let you keep your policy, and ease some stress in your life.
Keep an eye out for an
independent insurance agency that will really care about your needs and watch out for you. There are some life insurance companies that will offer competitive rates for some medical conditions (diabetes, heart disease and cancer). These companies are much more family friendly and don't just put everyone in a group. Their charge is based off of what you really need.
When considering a life insurance policy, be sure to do a great deal of shopping around. Some insurance providers can be more competitive price-wise due to the mass amounts of people they insure. There is also a good deal of difference on the ability of an insurer to guarantee they will be around fifty years later to pay out when it is needed.
When considering life insurance, be sure to look outside of what your employer provides. While this may be easier and you may assume they are providing what is best for you, it is not always the case. It is a good solid idea to buy a life insurance policy outside of what is provided by your employer as you can't take life insurance that is employer provided should you lose your job, find another job, etc. Make sure that they rates and coverage are competitive or better than other offers that you could go with.
Did you know?
If a relative of yours recently died and named you as the beneficiary on his life insurance policy, but the policy itself is missing, there are steps you can take to locate the policy, even if you don't know which insurance company issued it. Examine the deceased's canceled checks for any that were written to insurance companies. Look through any mail you can find for insurance bills or policy status notices. Check with former employers or organizations that the deceased belonged to which may have offered the policy. Look at tax returns for expenses or interest earned in regard to life insurance. Finally, check with the Medical Information Bureau, which has a database that can inform you if the medical records of the deceased were requested by any insurance companies since 1996.
Having to think about the possibilities of something unfortunate happening to you is uncomfortable and can be very stressful. However, it is an important financial decision that should be made in order to protect your family and their future. Investing the effort and time to learn all of your options and choosing your policy will in the long run make everyone feel a lot safer and will provide you with peace of mind (the decrease in stress carries the added benefit of increasing your life expectancy).
