Death happens, no one really plans for it. Do not neglect to plan something for your family because you do not want to think about this eventuality. The advice in this article will be of great help when you are considering buying life insurance.
Work with a financial advisor to purchase life insurance, instead of a broker. Insurance brokers earn commission on each policy that they sell, and thus will be more likely to pressure you into buying extras that you don’t need. Conversely, a financial adviser will receive a flat fee payment. Therefore, financial advisers have no reason to be dishonest with you as they offer recommendations about your policy.
Avoid the whole life policy and go with the term life policy instead. Whole life policies combine an investment with the standard term policy. The term life policy will pay out the amount of coverage that you have selected either in a lump sum or over the course of 20 to 30 years.
When applying for life insurance, you will need to fully disclose any type of high-risk activities you participate in, whether it’s a job or a hobby. While it could cost more money for you, it will keep you from making yourself ineligible when an insurance companies find out for themselves. In addition, failure to disclose risks can be considered fraudulent activity. You may have to pay large penalties or fines and in some cases, may even face jail time.
You should review your life insurance coverage needs at least once a year. As your family changes, so do their financial needs. If you have another child, your coverage needs will increase, while you might be over-insured as an empty nester. Check periodically on what you need to avoid paying too much or leaving your family in the lurch.
Watch out for insurance salesman that make unrealistic claims about their knowledge or performance. If the agent claims that they know more about the insurance companies than the rating agencies do, or if they claim that those very ratings are unimportant or not available, complain about them to their customer service department, or file a complaint.
You should protect yourself by understanding the cancellation procedure for your life insurance before signing on the dotted line. You may want to cancel the policy at some later time if your needs change or you are dissatisfied with the company. There are some companies that charge a penalty fee for canceling the policy. Make sure you are aware of the penalties you will need to pay for choosing to cancel your life insurance policy.
When you are choosing life insurance, make sure you are only paying for what you need. Think about what your life insurance will need to cover. It may need to pay for the funeral, a mortgage, or college for kids. Or if you have a separate account for your children’s college, you would not want to pay for that.
When purchasing life insurance, try to find a company that’s offering you a free trial run. Maybe you can find a 30-day risk-free trial out there. If so, go ahead, and look at the policy and see if you understand it properly. If you’re satisfied with how the system works, you can better know if you want to choose it or not.
Have your medical history ready when applying for a life insurance policy, because waiting around can be a hassle for everyone. You know that they’re going to request your medical history, and unless you’ve kept track of it yourself, the hospital’s records system might take weeks or months to get it to you.
Consider your current health when purchasing a life insurance policy. It is less expensive to purchase life insurance at a younger age and when in good health than later in life. Often, even if you experience health problems later, your life insurance is not impacted if it has already been in place. Trying to buy a policy after a health problem can be much more expensive, if not impossible.
To save money on your life insurance policy, improve your risk class by getting in shape. Something as simple as losing weight, reducing your blood pressure and cholesterol, or quitting smoking can save you a significant amount of money. Be sure to take a medical exam as well before you apply for life insurance to insure you are not surprised by extra fees.
As you know, death can strike at any moment and without warning. It comes sooner for some than others. If you don’t look ahead to the future, it’s possible that your death could lead to your family losing all that they have. Using the advice from this article will help you set up a sufficient plan for your family when you pass away.
