Insurance is something that we usually hope to never use, but when we do, it can be very beneficial. There are all kinds of insurance products on the market today. There are insurance policies for our homes, our cars, our health, our physical property and even for tickets to concerts and sporting events.
Life insurance is one more of the common insurance types. Most people have some sort of life insurance policy through their employer or their spouse or partner’s coverage. There are a wide variety of policies with varying coverage amounts, dollar values, and other benefits.
Life insurance is important because it can cover funeral expenses and other associated costs. It can also help your loved ones pay bills and cover other financial obligations after you’re gone. Certain policies can also accumulate cash value that can be used towards retirement, college education funds, and other purposes.
You can read more about life insurance policies at SimpleLifeInsure.com and other sites. You can compare and contrast the different policies and read customer reviews. You can even ask questions about coverage and determine the average monthly premiums would be.
Here are eight things to consider so that you can choose the best quote for life insurance that’s right for you and your family’s situation:
1. Look at how much coverage you really need.
Take time to examine different policy options. Make sure that you only buy a policy that meets your coverage needs. There’s no need to buy more coverage than what’s necessary or spend more money on the monthly premiums than your budget can afford.
2. Examine policies that offer coverage for the entire family.
It’s easy to focus on life insurance policies that focus on you and your spouse or partner, but don’t overlook family life insurance policies. Many of them offer affordable rates, and they cover you and everyone else in your family. It’s great security and peace of mind, especially if you have loved ones with pre-existing health conditions.
3. Get multiple quotes.
Don’t settle for the first price quote that you receive. Take some time to shop around. You want the best coverage at the best bargain for your money. You may even qualify for a discount if you already have other insurance coverage through your current insurance agent.
4. Don’t be afraid to ask questions.
Insurance policy language can be confusing at times. It can be difficult to interpret the contract language enough so that you understand what’s covered and what’s not. Don’t be afraid to ask questions. Make sure that you know what’s covered, what you’re paying for, and what the monthly premiums will be. Some other questions that you can ask are:
- Does cash value accumulate for this policy? If so, is there a maximum cash value that can be reached?
- Does the cash value have dividends?
- Do the premiums vary or do they stay the same?
- Are there any policy fees built into the monthly premiums?
- Does the death benefit vary or stay the same?
- Do the benefit levels increase or decrease over time?
- Is there any part of the benefits or premiums that are not guaranteed?
- Are there any pre-existing medical conditions that could affect my monthly premiums or disqualify me from this insurance plan?
5. Examine your current retirement needs.
Before deciding on a life insurance policy, take some time to evaluate your retirement needs. Do you have enough saved for you and your spouse or partner to live comfortably once you stop working?
Certain life insurance policies can be used to supplement your current retirement savings. They can allow policyholders to make withdrawals or loans against the policy to help build retirement funding. One drawback with such features is that this tends to lower the overall death benefit.
6. Be prepared for the unexpected.
Some insurance providers look into your extracurricular activities before determining a price quote. They can look at your credit history and driving record. They may also look at your favorite hobbies.
If you enjoy potentially dangerous pastimes like rock climbing, skydiving or are employed in hazardous industries like construction or mining, there’s a good chance that your premiums will be rather expensive, if you are even approved at all.
7. Review your current health situation.
If you’re in good physical condition, you may receive a very reasonable life insurance quote. Insurance companies also look at your current health and past health history. If you are a smoker, are dealing with chronic illness, or have a history of health problems in your family, the price quote you receive may be higher than what you may be expecting. Many companies will require a full medical exam before approving any policy.
8. Do you need term life insurance or whole life insurance coverage?
Term and whole life are the main kinds of life insurance policies. Each of them offers their own unique benefits. Term life insurance is less expensive because it’s only valid for the length of the insurance contract. If you are still alive when the term expires, there is no payout because the value is zero.
Whole life insurance can a cost a bit more than term life insurance policies, but they accumulate cash value over time. Some policies also offer dividends and the option of taking out tax-free loans against the policy. Most insurance agents are experienced in selling both kinds of life insurance, so make sure you ask any necessary questions before agreeing on a policy based on a price quote.
These are just some of the basic things to consider when shopping for life insurance. Most people are able to get reasonable price quotes, but every situation can vary. Talk to your family before choosing any kind of policy. Also, make sure that you have the names and contact information for any beneficiaries who would be included in the insurance contract. Life insurance is an investment in your family’s future, and it’s a commitment that shouldn’t be taken lightly.
Fully understanding your options will help you select the right coverage and premiums that best work for you and your loved ones. It can assist your family with financial burdens after you’ve passed away and allowed them to continue on for many years in the future.