In the world of life insurance, it is important to make sure that you have the best coverage for you and your family. That is where smart life insurance research comes in handy. Follow these tips to find the perfect policy for you without sacrificing coverage or losing money on a bad policy.
Take into consideration your family’s financial obligations when you are determining the proper amount of coverage. There will be different needs for different people after they experience the passing of a family member. Take into consideration fixed costs as well as one-time expenses, like funeral costs and estate taxes, when calculating the amount of insurance coverage necessary.
Prior to looking for life insurance on your own, check with your employer to see if there is available coverage through them. In many cases, employers can negotiate a rate for their employees and their family members. This can save you a lot of money and give you a great policy as well.
Drop bad habits and get into good shape prior to opening a life insurance policy. If you are in good physical health, you are likely to get a better rate from your provider. Smoking, high cholesterol, blood pressure, as well as depression, can drive up your rates more than you would think.
When purchasing a life insurance policy it is vitally important that you are completely 100% honest when answering questions about past medical history and other items raised such as drug use. An insurance claim can be declined if it is ever determined that the initial information provided was not true.
If you are working with an advisor to get life insurance, and this person is not fitting your needs, it is important to know that you are able to look for another one. You want to make sure you are working with an experienced, knowledgeable advisor who is looking out for your best interests.
Purchasing your funeral plot in advance of your death will help your family save money once you’re gone. Unfortunately, spur-of-the-moment plot purchases bring out the unscrupulous nature of some in the funeral industry, and a plot after death can cost a lot more than a plot purchased well in advance.
Sometimes people with life insurance (whole-life, not term) feel like updating or changing their policies after a few years, especially when a company introduces a better policy. This is why it’s important to think first before getting into a commitment, because changing now could cost you your premium payments and policy. So you should avoid this.
Making the necessary lifestyle changes can help you save money on your life insurance premiums. Remember that being a smoker, a drinker, being significantly overweight, or being in generally poor health altogether can result in higher monthly and yearly premiums, because the life insurance company sees you as a much bigger risk.
How do you determine how much life insurance coverage you might need? This is the hardest component in determining insurance coverage because everyone is different. The most common advice given is to multiply your annual salary by six to eight times and this figure should be the amount of coverage you need. However, this does not apply to everyone. In fact, you may not need this much coverage. Considerations to think about are the amount of debt left behind and other income resources the family may have at their disposal after your death.
Take the time to evaluate your needs before you begin looking at insurance policies. Not fully understanding your needs may lead to the purchase of an inadequate policy or overpaying for a policy that will offer more than what you really need. In both cases, you can also miss an opportunity to get a more cost effective rate.
Rather than paying two separate life insurance policies for you and your spouse, think about subscribing to a survivorship life insurance. No matter who dies first, the surviving spouse will be able to keep the entirety of the assets, and this type of insurance costs much less than two separate policies.
Stay away from guaranteed issue life insurance policies. Almost everyone who applies is approved without being asked to complete a medical exam. They are extremely expensive because the company has no idea of knowing what kind of risk the policy holder is to them. These policies would be a good choice, however, if you are not in good health.
Consider using an independent broker to help you secure your life insurance policy. These individuals can typically pull from more sources than a single company can. With more options available to you, you will be able to save money and feel confident that you are making the right choice for your family.
As you can see from the previous list of tips, purchasing life insurance can really make a difference in, well, your life. It takes a lot of research, a lot of budgeting, and a lot of asking questions, but it is all worth it in the end to have a life insurance policy that works for you.
