6 Crucial Things to Consider when Choosing Life Insurance
Life insurance may be something you’ve thought about but never really pursued because you weren’t exactly sure if you really needed it or whether it would be affordable. However, if you’ve done the research and you believe you want to have some kind of protection for your family in the event of your passing, then here are six things you need to think about when choosing your life insurance.
Age is one of the first things any insurance company will ask you when you fill out an application for life insurance. The younger you can purchase life insurance, the less expensive it is going to be.
Your age may also determine which insurance products are available to you for purchase. For example, some kinds of insurance, like term life insurance, are only available to those under the age of 60.
Did you know women tend to live about seven years longer than men do? But, how does this impact insurance? Typically, since women live longer than men, it means their insurance policies will be slightly less expensive (based on other factors, of course).
There are some kinds of insurance that you can get without a medical exam, but they can often be more expensive than those where a physical exam is done to determine your general health. Generally speaking, the healthier you are, the less expensive your insurance will be, and the more insurance policy options you will have available to you.
Additionally, certain health choices will have an impact on your eligibility and premiums. For example, if you smoke, your premiums will automatically be higher – whether this seems to be affecting your health right now or not. If you are a smoker and you get life insurance, you may be able to go back to your insurance company and get a better rate one year after you quit.
Regardless of other factors, we all know that you have a budget as to what is feasible for you to pay every month for your insurance premiums. Certain types of insurance are less expensive than others and can still give you a reasonable amount of protection for your family just in case something happens.
When looking for insurance, make sure you discuss your budget with your insurance broker so that they don't search for products that will be a financial stretch for you.
Length Of Time Insurance Is Needed For
Do you want a policy that is only good for a certain amount of time because you want to protect your family while you are younger? Maybe you only need insurance while paying off the mortgage or while your children are still young. Alternately, if your insurance is for final expenses or to provide an income for your spouse, you will want more permanent insurance.
Discuss how long you need your policy for and what kind of coverage you want to have with your broker.
Knowledge Of Insurance Policies
Some insurance policies are used specifically to generate dividends or cash for the policyholders later in life. Universal life insurance, for example, takes part of your premium and invests it, so you have a cash portion attached to your insurance policy that you can access. Other insurance policies have what is called a return of premium. What this means is that if you never have to use this insurance policy, then when the policy expires (if it is term insurance), you will get a portion of the premiums back that you paid into the plan.
Choosing the right insurance policy can be challenging, especially when there is so much information out there. If you have questions about the right kind of insurance for you, you can always chat with one of our insurance brokers. They are here to explain what each option means for you and what the best choice might be to meet your specific needs. Contact us today.