Around 106 million Americans don’t have proper life insurance coverage to protect their families. This means their policy isn’t an adequate amount or they don’t have one at all, which can be devastating for their loved ones in the case of a death.
Having a reliable, proper life insurance policy is crucial to make sure your family will be taken care of if something happens to you. But so many put it off thinking they don’t need it or will do it later in life. The best thing you can do is start looking into buying life insurance immediately to start your coverage.
With so many life insurance options available, it can be confusing to try to figure out which is best and what you need.
1. Is Now a Good Time to Buy Life Insurance?
Since life insurance is used in the case of death, many young people don’t think they need to invest in this kind of coverage. Unfortunately, this can end up being a very irresponsible choice for many people.
Most insurance brokers will have a lot of evidence to support the theory that every adult needs a life insurance policy of some kind. Even if that policy simply covers funeral expenses for your loved ones, it’ll be worth the effort of getting it in place. Check with your broker to see if you’re a good candidate for a life insurance policy to be sure!
2. How Much Coverage Do I Need?
Just like all other types of insurance, life insurance policies come in all different shapes and sizes. There’s no one policy that works for every single person, so it’s up to you and your broker to determine the right fit for you. One of the first things you should ask is how much coverage you should be looking for.
Your broker will have you give a brief overview of your situation along with some financial information to determine your specific needs. From there you can search through policies with those figures in mind.
3. What Type of Life Insurance is Right for Me?
There is more to a life insurance policy than the amount that will be paid out when it’s cashed in. It’s important to have a good understanding of the different types of life insurance policies your broker offers so you can make the best choice.
The most common life insurance options are whole or term policies, which are based on when the policy can be paid out. But there are also differences between policies in those categories as well. This question is one of the most important things to ask and will take some time and effort to understand the answer.
4. Are There Additional Steps I Need to Take?
For many, the process of getting a life insurance policy in place can be confusing since it’s pretty different than other types of coverage. Your insurance broker will be able to tell you exactly what steps need to be taken in order for you to be approved and the policy to take effect.
This will always include some paperwork that details the necessary information. But sometimes it also includes getting a medical exam to determine your current health situation. This physical is pretty straightforward and just gives the insurance company a baseline for where you’re at currently to determine your coverage options.
5. Who Will Get My Life Insurance Payout?
During these meetings, you’ll also need to decide who will get your insurance payout should something happen to you. This process works slightly differently depending on which policy you end up choosing.
As you look at policies you can ask your broker about how that decision is made and what the payout plan will look like for them. One of the final steps in purchasing will be making those decisions and setting those in place. It’s also helpful to know how you can change that person if necessary, as well.
6. How Much Will My Coverage Cost?
Obviously, one of the most important questions you need to ask is what life insurance prices look like for the coverage you need.
A life insurance policy isn’t worth very much if you can’t make the payments to keep it intact. There are a lot of factors that influence the overall cost of insurance, so it’s important to talk to your broker about current prices. From there you can adjust your policy if necessary to make it more affordable to fit within your budget.
7. When Will My Coverage Take Effect?
Lastly, it’s important to understand when your life insurance policy will take effect and the timeline for your coverage. Asking for these specific dates will help you better understand your coverage and make sure you have exactly what you need.
Most of the time, as soon as your policy is approved and you’ve made your payments the coverage will kick in. But occasionally, there is a delay in coverage that catches people off-guard. It’s important to be sure you don’t have anything like that happen, the more information you have the better!
Things to Consider Before Buying Life Insurance
While life insurance isn’t the most fun thing to talk about or think about, getting a solid policy in place will bring you a lot of peace of mind. Instead of worrying about what would happen to your loved ones if something tragic occurred, you can be assured that they’d have the funds they needed to keep going.
Taking the time to ask the right questions while buying life insurance will help you find just the right policy for you. It should feel customized and specific to your needs and situation. The best thing you can do is work with a professional who can guide you.
Our team of life insurance experts can help you understand all of your options and figure out which plan will work best. If you’re interested in seeing what we can find for you, contact us today!
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
