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Life Insurance: What You Need To Know

Life insurance may not be what you want to think about over a nice cup of coffee, but it is an important tool in planning your financial future and to protect your family from financial ruin should you pass away unexpectedly. Read on to find tips for getting the most from your insurance.

Every person should consider life insurance. This can be a great help when a loved one dies. It helps to pay for the death related expenses and allows some time for the immediate family to recover from the loss. Choose an insurance company with a good track record and fast payment history.

Life insurance will help out your loved ones that are left behind if you pass away. Funerals these days are expensive, and if you have life insurance, it won’t leave the ones that are still living an astronomical bill to pay. It can also help pay for your children’s college, if you are not around to do so.

When selecting a life insurance policy, remember to calculate coverage for both fixed and ongoing expenses. The proceeds from a life insurance policy may also be needed for big, one-time expenses. For instance, burial costs and estate taxes are significant.

Be sure to tell the truth when applying for life insurance. The company you are applying for a plan with will more than likely verify that the information given on your application is the truth. Being caught in a lie with these companies could prevent you from getting life insurance.

Lower the cost of life insurance by quitting smoking. Smoking is one of the biggest health risk factors from an insurance standpoint, but some life insurers will reduce your rates with just one year of being smoke-free. After two to three years of non-smoking status, some insurance companies will put individuals into the standard rate class, reducing premiums substantially.

When looking into getting life insurance, there are two separate rate groups that are called standard and preferred. When you are comparing prices don’t mix these up and compare a standard policy with a preferred one. They will cost very different and only about 1/3 of the population get a preferred rate!

Life insurance is actually cheaper if you chose multiples of $250,000 in coverage. So, if you want $230,000 you will actually have to pay more then just rounding it up to $250,000. It is never a bad thing to save a little money, and you can use that savings for something else.

The questions you ask should be pertinent and very detailed. If your agent cannot answer these questions in full confidence, you need to find someone who can. Check to see if your policy can be renewed, can be canceled if needed, and any other questions you have about your premiums. You have to understand each policy’s terms to choose the best one.

As you can see, there are many things to consider when you are shopping for life insurance. Don’t just jump in and purchase from the first company you pick out of the phone book. Learn more about this subject and you can make an educated decision for the good of your family.

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