If you are looking for all of the basics regarding life insurance plus some other tips that you might not have heard of, this article is for you. This can be a confusing subject with all of the different opinions and information that is available – especially when a lot of it is contradictory.
Life insurance is set up to provide families with financial security upon the death of a loved one. To determine the type of policy and financial amount needed for your family, consider your mortgages, debts and all final expenses, as well as living allowances, college education expenses, etc.
It is important to have a sufficient life insurance policy. You should have enough insurance to cover at least five years of your current salary, if you are married. If you have children or many debts, you should have upwards of ten years salary’s worth of life insurance. Insurance will help your loved ones cover expenses when you are gone.
It is important to purchase life insurance when you are young and healthy. This is because many insurance companies do not want to provide the elderly, disabled and sick. And companies who do provider older or sick people with life insurance often raise the premium rate due to their condition.
Try opting for a term-life policy. This is known as the best and simplest option for many Americans ages 20 to around 50. The cash-value life insurance policies can be a great option for wealthy people over 60 years of age. For the average person though, term-life insurance is a great option.
You should stay away from certain insurance policies referred to as “guaranteed issues” unless there is no other alternative. People that health issues may have to get a guaranteed issue policy, they may be more expensive. This kind of insurance doesn’t need a medical exam, although you might pay higher premiums for it, and the coverage could also be limited.
Only in rare instances should you cash your policy out. People in difficult financial straits are choosing to do this to meet immediate needs. That is a terrible use of the resources you have expended to maintain the policy. There are better ways.
If you have a whole-life insurance policy and have had it for a long while, whatever you do, don’t get rid of it or replace it with another one. Hold on to the old policy because you don’t want to lose the investment that you have already made into past premiums. The better option is to keep the old policy without making any changes and purchase a new whole-life policy instead.
One important piece of advice when purchasing life insurance is to buy when you are healthy. If you have some type of medical issue or a pre-existing condition, in many cases life insurance will be very expensive or not you will not be able to purchase it at all.
Get an idea of what each company can offer you by comparing quotes first. If you prefer, get your quotes online so you can see them in front of you. You can also get quotes over the phone. Don’t give out your personal information though when you do this. They only need general demographic information to give you a quote. Compare as many quotes as you can before choosing.
If you have special needs children, you are probably worrying about who will take care of them after you are gone. Subscribe to survivor-ship life insurance for peace of mind. When you die, this type of insurance will provide enough money and guidance for you child if he or she cannot earn a living.
Carefully consider whether or not to cancel your life insurance if the company asks you to start a new policy with them instead. This may not always be the best choice for you; talk to your agent and discuss the pros and cons of the situation. You want to make sure that you will be saving money and that you are still afforded the same amount of coverage as before.
If you are a smoker, consider purchasing term life insurance specifically intended for smokers. Smokers are accepted on such policies, but the cost will be higher than a regular policy. The cover medical expenses that are tied to tobacco-induced health issues and diseases too. Smokers are classified differently depending on their smoking habits.
Prior to purchasing life insurance coverage, you should consider giving up smoking. The reason quitting helps you is that the premiums are generally significantly higher for smokers than they are for non-smokers. That is why you should quit as soon as possible if you are going to look for a life insurance policy.
As stated at the beginning, there is quite a bit of information in regards to life insurance. Hopefully you will find these tips beneficial. You should now find yourself ahead of the game if you are working to become an expert, or just trying to get a bit of background information.
