Let’s take a look at “What You Need To Know About Life Insurance Before You Buy” Getting a life insurance policy is a big step.
This is a major purchase, and you’re committing to a number of years of reinvesting. Before you sign, do your research and look into various options. Remember the competitive nature of companies; you can almost always find a better deal.
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What You Need To Know About Life Insurance Before You Buy
Here are some things you should know before signing on the dotted line.
Review your insurance needs
Take a good look at where you are financially and where your family would be with a sudden loss of your income. If you’re a stay-at-home parent, then calculate the cost of daycare as your income and use that for your estimations. Think of where your family will be in five years or ten.
Compare the different types and different carriers
If your needs are small, simple, and short-term, then look at term life. If you want an investment, a permanent life insurance policy might the best way for you to proceed.
Life insurance is meant to protect your family from financial ruin after you’re gone, not drive them to it while you’re alive. Make sure that it fits in your budget. If you have a current policy, keep it. It costs a great deal more to have to start over with a new policy than it will to stay with the current one.
Read the fine print
For that matter, read the bold, highlighted print. Read the entire thing and understand what it says. Let the agent explain anything you don’t understand. Don’t be influenced by someone pretending it’s not important. If it weren’t important, it wouldn’t be on the policy form.
Every few years, break out the policy and go over it again
Is the coverage you bought five years ago still relevant to the needs of your family? Talk to your agent, tell him about your changing family story, and see if he/she is able to help adjust your policy to match your changing needs.
Get help
When trying to find an agent or a carrier, ask around to friends and relatives and see what experiences they have had, positive or negative.
Being prepared is the best way to save money on insurance rates. Doing your research and shopping around before talking to an agent is going to save you not just money but time as well.
