Life insurance is an important component of a comprehensive financial plan, but there are a number of things to consider to ensure that you get the policy that meets your individual financial requirements. Here are 10.
Do you need life insurance? Life insurance is usually used to protect the people you leave behind, people who depend on you. But it can also be used to pay for final expenses, and there are estate planning reasons to have it as well.
What kind of life insurance is ideal? With pure term policies, you pay a premium, and the policy pays your beneficiaries when you die. Other policies have other options.
Can you get coverage? Tell the truth when you apply for coverage. If you make a claim, the insurance company will investigate.
How much life insurance do you need? Consider your family’s income needs, including expenses such as loans, college tuition and funeral costs.
How much life insurance can you afford? Many people often buy too little life insurance.
What term length is ideal? If you purchase a term policy, you will need to decide the length of your term.
Do you want any riders? Disability and other waivers are available.
Can you convert the policy? If you live longer than the term of your policy, you may want to move your policy to another policy without any hassle.
Is the insurance company stable? You should always check out the rating of a life insurance company.
Did you shop around? Buying life insurance may seem easy thanks to the Internet, but there are many options.
This just skims the topic. A number of factors go into deciding what kind of life insurance policy is best for you. I would be happy to go over them with you. Feel free to call me or email me.