Nine Considerations About Buying Life Insurance
Financial security for a family should purchase of life coverage.
The list is but a few talking points. You’ll have more thoughts, as well.
1. Life insurance may seem complicated, but all policies fall into one of two basic camps. Pure term policies are insurance only, meaning you pay a premium for a specific time period and the policy pays out a certain amount when you die. Whole life policies combine term policies with an investment product. In addition, they can build a cash value.
2. Whole life insurance may be right for some people, while others may prefer to keep their investing and insurance separate. On one hand, you can keep whole life policies the rest of your life, building up cash tax-free. You can even borrow from the policy for other purposes. Because whole life is often more expensive than term life insurance, many people who buy whole life insurance often buy too little, leaving them under insured.
3. Purchase enough insurance to meet your immediate, as well as, consideration for potential needs. Your health condition may change making later purchase more costly or impossible.
4. the term of the policy meets the length of financial responsibility. You’ll most likely want the policy to last as long as you have dependents, a mortgage, etc. A needs analysis is helpful and should be suggested.
5. Buy insurance when you’re “young and healthy. “Rates usually rise for older individuals and those who are in less than optimal health.
6. Don’t buy unless you have dependents, a significant other, or assets to protect. Life insurance is about protecting that which you leave behind.
7. Always be truthful when you apply for coverage. Insurers get very concerned about forgotten medical issues.
8. An independent life insurance agent is a good source for coverage and will assist you in comparing company’s, policies and premiums. Obtaining life insurance prices and coverage has never been easier.
9. Obtain advise for your specific financial circumstances. Outline your objectives clearly to stay on track towards your financial goals.