family. On any given day, an illness can destroy everything we have worked for.
Situations such as disability or death can destroy the heritage we have built for our family; for this reason, it is important to have life insurance that protects our loved ones.
If it’s your first time shopping for life insurance, a good place to start is to get a rough estimate of how much life insurance you should buy to protect your family. For a quick and easy way to calculate your needs, try the Protective Life Needs Calculator. Next, get an understanding of the difference between term and permanent life insurance – so that you will be well aware of the direction you should take regarding these two basic types of policies.
Before you shop for your first life insurance policy, here we will tell you some tips for finding the right policy:
Analyze your income and determine how much coverage you need
Before selecting a policy, look at your net income, social security benefits, and others. Then ask yourself if these sources of income are enough for your dependents to maintain the standard of living they lead, should you be lacking.
There are several types of life insurance, designed to fit your particular needs. It is suggested that the chosen coverage be five to eight times your current income. That said, seek a payment plan that does not compromise other necessary, present, family expenses
Buy life insurance while you’re healthy
Many people are motivated to purchase life insurance when their health is compromised or after having some close experience with the death or loss of a loved one.
Did you know that the younger you buy life insurance, the lower the cost? Therefore, experts on the subject recommend investing in insurance when you are young and in good health. This is because people with severe health conditions, overweight, smoking habits, or risky work, could pay 50% higher rates.
When getting a price quote on life insurance, make sure you are comparing similar products. Because term life generally has a lower premium than permanent life insurance policies, there may be a large price difference in term policy compared to a permanent policy.
Understand that life insurance is designed for the protection
Your main objective in obtaining life insurance is to protect your beneficiaries financially if you die. Although permanent life insurance policies have the potential to acquire cash value over time, they are not intended to be an investment vehicle.
Make sure the life insurance agent is licensed
Not all agents who offer insurance to you are official agents of life insurance companies. Some agents only act as brokers, aka intermediaries. So before buying the best life insurance, make sure that the insurance agent who offers you is an agent that has a license.
The medical examination
We advise you to answer all the questions that you ask honestly and to declare the pre-existing diseases. Be careful because if you lie, the insurer may refuse to pay the corresponding compensation at the time of death.
Buying life insurance is an emotional process for many people. Mainly because they have to face the reality that one day they will pass away. Also, they worry about what will happen to their dependents — partners, children, and parents — when they are absent.
That is precisely the reason why purchasing life insurance is sensible. The purpose of life insurance is to ensure that your family can continue to meet its financial responsibilities. With life insurance, your dependents can cover basic needs such as paying the mortgage or the education of their children, among others.