If your loved ones depend on you, think about getting life insurance. The bottom line is, if you pass away, you need to continue to provide income for your dependents. Read on for useful tips on choosing the best type of life insurance to meet yours and your family’s needs.
When deciding how much coverage you need for life insurance, take a look at how your family operates and what the implications would be if you were not there. When a loved one is no longer in the picture, needs will vary according to each family. You must make sure that the amount of coverage is enough to care for your loved ones should this occur.
Risky hobbies, such as bungee jumping or scuba diving, can greatly increase your premiums if they become known to the insurance company. There are also different types of occupations that may be deemed hazardous by an insurance company. If you work cutting trees, as a crab fisherman or another high-risk job, you will have to pay more for insurance.
When selecting a life insurance policy, remember to calculate coverage for both fixed and ongoing expenses. Be sure to plan for high bills such as taxes, medical bills, and funeral costs.
Buy your life insurance through your financial advisor, rather than using a broker. Most insurance brokers get a commission for selling policies. Financial advisers earn a flat fee for their services and the products they sell. This creates an adviser with more ambition towards honesty and a broker with the higher priority of “making a sale”.
Some insurers may offer premiums that can be as much as 40% lower than others. There are many sites online that will allow you to compare policies, coverage and prices, but be sure to figure your medical history into the equation.
Buying more insurance gives you better savings. Though it may seem strange, many agencies will offer large discounts to people who buy greater coverage. This not only saves money, but is also a god way to ensure your family is sufficiently covered.
Stay away from insurance policies that claim to have a “guaranteed issue” unless there are no other choices to take. These policies are tailored to people with pre-existing health conditions. Getting a guaranteed life insurance policy does not require you to get a medical exam. You will have to pay higher premiums though, and the coverage may only be available for limited amounts at face value.
For more personalized service, consider meeting with an independent broker instead of someone at a larger firm. The firms themselves usually only sell their product offerings for life insurance, whereas the independent broker can pick and choose options from the various firms, to build you a better policy. Your life insurance is something that you will hopefully have for many years, so do the appropriate research prior to making a decision.
It is important to conduct your own independent research when deciding whether or not to invest in a particular life insurance policy. Make sure you’re buying the appropriate coverage at an appropriate price. If you have any questions about the contract, get them cleared up before you sign it.
It may be tempting to take your savings out of a whole life policy, but this is almost never a good idea. A lot of people are cashing in their policies to make ends meet these days. Cashing in a policy, especially a permanent life policy, will cause you to lose a lot of the money that you had invested in the coverage. Find better solutions to your financial problems than cashing out your life insurance policy.
Joint-life insurance policies provide large discounts for married couples. If you desire to save money, this option is always a good choice. There is no “double payout” option with such a policy, and the death of one partner is going to bring the policy to a halt, so keep that in mind when deciding.
Do not let your family go through financial stress along with the emotional strain of losing you. Your loved ones need the peace of mind of being able to continue paying the bills if you die. Apply what you learned above to make selecting the right life insurance policy a little easier.