Life Insurance Quotes | Whole, Universal and Term Life Insurance Quotes
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5 Questions to Ask when
Choosing a Life Insurance Policy
If your family depends on
your income, they could suffer great financial hardships when you
die. Having a quality life insurance policy is a way to ensure that
you can still take care of your family after you pass.
To find a policy that is right for you, get multiple
quotes and compare plans. Once you've decided on a policy, be sure
to review it when you experience any significant life changing
events, such as the birth of a child or a change of employment.
Determining the amount of life insurance and
what type of plan you need depends on your situation. Here are a few
questions you can ask yourself and then discuss with your life
insurance agent when you are requesting quotes.
1. Do you need a life insurance policy?
If you have family members who depend on your income such as
children, a spouse or elderly parents, than you probably need life
insurance. If you do not have any dependents and you have some money
set aside for your debts and funeral costs, than you probably do not
need a life insurance policy.
Permanent life insurance offers coverage throughout your lifetime,
with cash value accumulations. This plan provides added security and
flexibility. Since permanent life insurance policies build cash
value, the money can be used to help meet future goals such as
supplementing retirement income or paying for your children's
college education. Although you may draw from this cash value
account, you will be charged fees and taxes to do so. Otherwise
these policies cannot be touched until they are distributed to your
beneficiaries upon your death.
A permanent life insurance policy many be right for you if you want
to leave an inheritance for a charity or your dependents. It also
might be a good decision if your adult children, spouse or elderly
parents rely on your financial support.
Term life insurance is cheaper and less of a commitment than
permanent life insurance. Since a full permanent policy is generally
more expensive, a term life insurance policy can be a more
affordable option. Term life insurance is only active until you
decide to stop paying into it. Term Insurance provides coverage for
a certain period of time, such as 10, 20 or 30 years. It's generally
for people who need life insurance just long enough to meet their
responsibilities to their dependants, such as young children. If you
die during your working years, your family will be provided for
through your planned retirement year.
Since term insurance is only for a limited amount of time, you can
decide to stop paying on it when you reach certain milestones, such
as when your children graduate from high school or college or when
your mortgage is paid off.
In addition to permanent and term life insurance, three common types
are whole life, universal life and variable universal life. Request
free life insurance quotes and discuss your options with an agent to
decide which is right for you and your family.
This is a very important decision that should be discussed with an
agent or financial advisor. Request free life insurance quotes and
discuss your options to ensure that you are not spending more money
than you need to and so that your family is not left with financial
hardships when you pass.
3. How much life insurance do you need?
Generally, you can calculate the amount of life insurance you need
by taking into account your annual income and figuring how your
family would provide for themselves in the event of your death. Your
income will need to be replaced for at least the first few years
after your death. Also take into consideration any debts or funeral
costs you'll be leaving behind.
4. How much does life insurance cost?
Many factors are taken into account when determining the cost of a
life insurance policy, so the amount can vary greatly. Company life
insurance policies are usually cheaper, but you will typically only
be covered for the period of time you are actually working for the
employer. There may also be a period of time that must pass before
you are eligible to receive benefits.
If you are self employed or you want to provide more for your family
after you die, you will want to look into private life insurance
polices. Some items that affect the price of a policy are whether or
not you have high risk factors, such as if you are a smoker,
overweight or have a preexisting medical condition. In addition,
policies can range in costs depending on the agents fees, types of
coverage and limits. This is why it is important to shop around and
get multiple life insurance quotes before deciding which is best for
you and your family.
5. Are you comfortable with the policy you are choosing?
Shopping around for the right insurance quotes is as important. Shopping online for life
insurance is easy and finding the lowest rate is great, but consider
what's at stake. Does the low rate that you found cover everything
that you need in a policy? Are you comfortable with the company and
do you understand every portion of your policy? This is important
for your peace of mind and for your family's security.
Don't be afraid to ask any questions or to get a professional
financial advisor's opinion. It's your life and your family's
future, so make sure it meets all your needs.
Protect and care for your loved ones.