Deciding to purchase a
life insurance policy is important and rewarding because
it guarantees that your family or friends will have
the necessary finances to continue their current standard
of living after your death.
It is also a mature decision because it is difficult
for one to think about his or her unexpected death.
Now, you need to choose the right insurance for your
loved ones. The article, Top 10 Things to Know About
Life Insurance,” posted on insurance.com offers
helpful tips to best ensure that you obtain a life insurance
policy for the best rate that is suitable with your
family’s best interests in mind.
The first thing you should do is to shop around for
the best
premium. The best way to find a variety of rates
within the shortest amount of time is through the Internet.
Just about every insurance agency’s insurance
premiums will be accessible online.
The next thing to remember is that you should never
purchase more coverage than is necessary.
“The key to purchasing the right amount of life
insurance is to have just enough coverage to meet
your needs. If you have more life insurance than you
need, you'll be paying unnecessarily for higher premiums.”
The better your health results in better rates. You
will be required to pay a higher
rate for anything that contributes to lowering your
life expectancy, such as smoking, obesity and a poor
driving record.
The fourth tip is to buy life insurance as soon as possible.
The younger and healthier you are, the lower your rates
will be.
It is important to review your coverage terms especially
before or after any major life changes.
“Any life change signals the need for a review
of your overall financial
plan. When it comes to life insurance coverage,
you'll want to make sure that this major life event
(e.g., birth of a child, children are grown) won't leave
you underinsured or overinsured.”
The sixth thing to keep in mind before purchasing insurance
is that you may not necessarily be required to pay commissions.
A contributing reason for higher premiums results from
the actual policy paying commissions to the life agent
or broker. So if you have to pay commissions, make sure
your policy is not already doing so.
Determine if you are overpaying your policy through
monthly payments.
“You may not realize it, but you may be paying
more for your life insurance if you pay your premium
in monthly installments. Many insurance companies charge
extra fees if you make monthly premium payments instead
of paying the annual premium.”
Do not automatically take the life insurance offered
by your employer. The amount of group life offered is
usually nonnegotiable and may not be adequate enough
to support your family. Also, if you leave your job,
you will not be able to take your life insurance with
you.
Perhaps the most important tip or instruction is to
tell the truth, the whole truth and nothing but the
truth.
“If your insurance company finds out that you
lied about a health-related condition or your lifestyle
(e.g., smoking habit), they may be able to terminate
your coverage.”
And the last thing to consider prior to purchasing insurance
is that it is sometimes less expensive to buy more coverage.
Since insurance costs less per thousand dollars, you
may be able to save money if you purchase high amounts
of coverage, such as $250,000.
Keep in mind that life insurance is designed to protect
your loved ones and not you. You are investing for
your family’s future.
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