None of us are able to forecast the future. We may have a good idea of what will happen if current conditions continue. But we are unable to predict the unexpected. Life insurance is an important way to provide for the unexpected–as it will affect those we love. Here are some tips to consider.
Try to lead a healthy lifestyle. The healthier you are the cheaper your life insurance will be as insurance providers assume that you will live longer. Remember, you will be expected to pay a high premium on a life insurance policy for anything that shortens your life expectancy, for example being overweight, smoking, taking certain medication, etc.
Get your life insurance policy through a financial adviser rather than a broker. Any broker will be entitled to a commission payment once you buy an insurance policy. In comparison, a financial adviser is still paid, but their salary isn’t dependent upon sales. This will make a financial advisor more willing to be honest about what you need, and they will exert less pressure on you to purchase the policy.
Term life insurance is the type of policy that most experts recommend that people purchase. This provides insurance on the life of the policy holder for a predetermined time, such as 10 or 20 years. Premiums are normally paid annually, and once the term expires, the policy expires as well. By then, the insured’s needs may have changed and he or she may not need a life insurance policy anymore.
Consider a convertible policy if you cannot decide between term or permanent life insurance. This type of life insurance policy starts out as term life insurance, and if they choose to before the term expires,the insured can convert the policy to permanent insurance without having to take a new medical exam.
Before purchasing life insurance you should determine the amount of coverage that you need. The easiest way to do this is to take your average yearly salary and multiply it by eight. There are also a number of simple to use online calculators that will help you figure out how much life insurance you need.
Before purchasing life insurance it is critically important that you research the different types of insurance policies available and select the policy that is best suited for you and your family. There are a wide variety of insurance policies available for purchase. The four major types of insurance are term life, whole life, universal life and variable universal life.
If you want to make sure your life insurance premiums are as low as possible, you should get life insurance through a financial advisor instead of a broker. The reason is because brokers get their pay by a commission from the policy you choose, and therefore, they may try to get you to purchase a higher life insurance policy than you need. Advisors are charged a flat fee, so the decision you make does not affect their pay. Therefore, they are more likely to have your best interests in mind.
Life insurance is one of those things we want to buy, but hope will not be used–at least for a long time. These tips will provide guidance in choosing a life insurance policy to cover future provision for your family in case you are not there. Its greatest value is peace of mind for you and your loved ones.