"What type of life insurance is best for me," you might be asking? Find out here!
Learn how to define Term and Whole life insurance
The American life style is so fast-paced that people often overlook the need for life insurance until a tragedy strikes and a relative or friend dies without the important coverage.
Then, however, the life insurance shopper wants to put something in place quickly and without having to make a lot of trips to different agencies in an attempt to find suitable coverage. Thanks to the internet, buying life insurance is radically simplified from what it was just 10 or 20 years ago. The following steps will help you get the policy that fits your needs.
- Take some time to decide what coverage you really need. An easy way is to use the Acronym DIME, and add the results.
- D—stands for “death.” What is the average cost of a funeral in your area.
- I—stands for Income. You should multiple your annual income by 3 at a minimum. Many analysts say 5 will more accurately represent the amount of time your family will need the same amount of income if you should die.
- M—stands for Mortgage, but it is intended to include all major outstanding debt.
- E—education. Many people forget to include the cost of educating not only the children, but also a spouse who will often need to return to college to learn skills that will enable him/her to acquire a job in a similar pay range.
- Add the amounts and you will have the minimum life insurance you should actually seek out. Alternatively, you can also use our free to determine an estimate of the face amount you'll need.
- What type of life insurance is best for me, you might ask? Depending on the purpose, you may want Term, , or .
- Complete a profile using our site. You will be placed in contact with a local agent who will .
- While waiting to hear from an agent, you can check the on several companies. Choose a company with strong assets, a long history, and a record of paying claims in a timely fashion.
- When you choose the agent you want to work with, be prepared to ask some of the following questions:
- What is the age of endowment? (the age when face value and cash value are equal and premiums stop).
- Does the company have a blanket tobacco use policy or various rates for cigar or pipe smokers versus cigarette smokers?
- Is a physical or visit from a paramedic required? Can a doctor’s report be submitted in lieu of a paramedic exam?
- What conversion privileges exist for a term policy?
- What is the preferred method of payment?
- Take the time to work with an agent. Life insurance is a product decision that will impact your entire life, and the language is not simple. If you purchase it on your own, you alone are liable if you purchase something you didn't quite understand and find dissatisfactory later in life. If an agent fails to make you aware of a critical element, the company is responsible; thus you are much more likely to get something that will fit your needs.
- Once you have applied, you have a 30 day free look from the time your policy is delivered to you. If you see something you didn't expect or didn't want, you can return it and have your first payment refunded.
You wouldn't buy a car, a house, or settle on a college for your children without asking questions and attempting to gain some knowledge prior to your purchase. Life insurance is equally important and deserves the time it takes to do it right. If purchased from a proper perspective and with adequate knowledge, life insurance should be a one time decision that has no need to be changed in later years. Sadly, for many people this is not the case. You, however, have an opportunity to make the right decision for you—one that will allow you to congratulate yourself for the rest of your life.
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