Are you in the market for a life insurance provider? The advantages of life insurance aren’t debatable, yet some people don’t have it. If you’ve decided to buy life insurance, congratulations. However, you need to identify the best and most affordable way to cover yourself and your loved ones. The following tips can help you.
Consider Employer-Provided Life Insurance
If you or your spouse is employed, find out how much the employer-provided insurance covers before you consider additional covers.
In most cases, an employer will provide a cover that’s twice your salary. This may not adequately cover your health needs. Experts recommend an insurance cover that’s 7 to 10 times an employee’s salary. That’s what you should aim to attain.
Consider your loved ones
There are two issues here. A family member can fall sick and accumulate unbearable medical bills. Second, your loved one may pass on. Your life insurance should be able to cover these extreme cases without putting you into any financial strain.
Have a candid discussion with your insurance provider to provide comprehensive cover for your family.
Find Which Policies Are Most Suitable For You
Life insurance policies can either be Term Life or Whole Life policies. A Whole Life policy is a lifetime policy, while a Term Life policy will only cover you for a specified duration, say 10 or 20 years. Choose a policy that is suitable for your unique financial condition and family.
Consider Adding Life Insurance
If you already have an auto or home insurance cover, adding a life insurance policy can help you save big on discounts. To get these discounts, you must use the same insurance company. You can save up 10% by bundling your home/auto insurance with life insurance.
What are the different types of life insurance?
As stated earlier, there are two types of life insurance: Term life insurance and whole life insurance.
Term Life Insurance
This is a type of life insurance that expires after a specific duration. When signing up for term life insurance, you must pick a beneficiary who will be given some money, a death benefit, if you die before your contract expires.
The beneficiary can choose to get the death benefit as a monthly payment or as a lump sum. The total premiums you pay for this insurance is the death benefit your beneficiary will enjoy.
Whole life insurance
As the name implies, whole life insurance is ‘permanent’ in the sense that it covers you for your entire lifetime. Besides the death benefit, it also has a cash value. Whole life insurance is more or less like an investment that offers tax-deferred savings.
The cash value will earn you some interest every month. The greatest advantage of this policy is that you can get a loan against your savings and even withdraw some cash if you have a financial problem.
Whole life insurance is necessary if you want to use its cash value component to cover your estate plans, endowments, or if you have a child with disabilities who needs long-term cover.
The above insurance types have various components that you need to discuss with your insurance company or agent.
Why It’s Best To Buy Insurance Through An Agent
There are two options when it comes to getting insurance quotes. You can choose to go online or contact an insurance agent directly. Going through an agent has a lot of benefits.
Your insurance agent is like your personal assistant on all matters of life insurance. Your agent can answer all your questions and address all your concerns. You can choose a captive agent (one that deals with only a single insurance provider) or an independent agent (one that deals with many insurance providers or an agency).
The benefits of buying insurance from an agent include:
l The agent ensures you get the right level of coverage depending on your needs.
l The agent can help explain to you different insurance terms so you can make informed decisions.
l An independent agent can help you get the most affordable cover by comparing prices from different insurance providers.
l Captive agents are very knowledgeable and experienced about the insurance companies they deal with. This means they know how to help clients get the best deals.
A local agent knows the area you are coming from and can help you pick the best insurance covers depending on where you live.
Who Needs Life Insurance The Most?
The short answer to this question is that everyone needs life insurance. Even if you are at the peak of your life and are in good health, you never know what the future holds. If you don’t have a cover now, imagine what financial implications you’d face in case of a sudden accident or illness. You’ll need life insurance if you are:
A Parent With Children
If you have a spouse and children, what would happen if you receive a call right now that one of them has been involved in an accident or has been taken seriously ill. Will you be able to foot the hospital bills? If not, then you need life insurance as soon as today. If you have a kid (or spouse) with special needs, insurance will ease the burden.
If your family depends fully on you, then you have to think about how they can continue surviving in your absence. That’s where the death benefit comes in. The death benefit can help your beneficiaries cope with life after you pass on.
An Older Adult
If you are approaching your retirement age and have no savings, life insurance can make your retirement more comfortable. As you get older, you need constant medical attention, which your family members may not afford. Life insurance can help with that.
An insurance cover may also help with your funeral expenses when you pass on. This will ensure you aren’t a burden to those you’ve left behind. Your family can also use it to pay any outstanding debts that you or your estate owed.
The Bottom Line
If you have a steady income source, the next thing you need to consider is life insurance. Life insurance will give you peace of mind that should anything happen to you are your loved ones; you won’t have to bear the whole cost.