Life insurance can be a great way to protect your family’s financial future. But with so many different types of life insurance plans out there, it can be hard to know which policy and coverage option are right for you. Here are five simple tips on how to get the right life insurance for you and your family.
Get the Facts
Talk to an independent insurance agent or broker about your needs and goals. They’ll be able to explain what the different types of policies have to offer and how much coverage you’ll need to opt for. In some cases, independent brokers or agents may even be able to help find policies with better rates than what’s available online or in ads.
Consider Term versus Whole Life
Whole life policies, as you may have guessed from the name, are permanent they last until your death while term policies only cover you for a set time period, such as 20 years or 30 years. If you’re single or have little debt, a term policy may offer you enough coverage at a lower price than whole life. But if you have dependents, like aging parents or a disabled family member, who rely on your income, consider getting permanent coverage with a whole life policy instead.
Buy Enough Coverage
Remember that the point of a life insurance policy is to provide financially for your dependents if something untimely happens to you in the future. Given this, it’s vital that you buy enough coverage. While it’s important that you not under-insure yourself, you should also avoid over-insuring yourself. Since the coverage you opt for is linked to the premium you pay, opting for more coverage than you require will have you paying a higher premium.
Ask About Discounts
Life insurance companies sometimes offer discounts to policy buyers for being healthy, not smoking, etc. So, don’t shy away from asking the insurance agent whether the company offers any discounts.
Get Quotes from Multiple Companies
Don’t make the mistake of signing up for the first life insurance plan you come across. Companies assess risk differently, which means you’ll receive a range of premium quotes from insurers. So, make sure to compare quotes and pick a policy that offers comprehensive coverage at a competitive cost.
