Most people know they need life insurance, but many people put off actually buying a policy or never bother to review their policy to make sure it still provides enough coverage to suit their needs. Having a life insurance policy in place can offer plenty of benefits, including replacing lost income and ensuring your kids can afford to go to college, plus it can even be used to leave a bequest to help your kids and grandkids enjoy a brighter future.
If you find the idea of buying life insurance more than just a little confusing, you’re not alone. Here are some guidelines to help you find the right policy:
- Know what you need. Do you need to replace your income? Cover future college costs? Plan for long-term care? No one understands your financial situation or your goals and objectives better than you do, and an experienced insurance broker can help you understand how to meet and fulfill those goals.
- Understand the difference between term life and whole life policies. In a nutshell, term insurance is good for a specific period of time and may or may not be renewable once that time limit is reached. Whole life (sometimes called permanent life insurance) policies remain in place until your death. Each type can offer different advantages depending on your own situation and needs, so consider each type fairly to make the best decision.
- Ask plenty of questions. Most consumers have only the vaguest understanding of what a life insurance policy does or the options it can offer. Replacing lost income is just one of the benefits. Be sure to ask if the policy can be canceled or renewed, how long the current premiums remain in effect, what riders are included, if protection is provided for accidental death, and what exclusions are in place.
- Start planning early. Life insurance provides critical protection for policyholders, especially in the event of an unseen accident. Putting off life insurance planning and purchasing leaves your loved ones at risk for serious financial problems that can have a direct bearing on their futures. Early planning is the key to ensuring your loved ones’ needs will be met no matter what happens.
- Use an independent broker. Brokers that work for a specific company will be limited in the options they can offer. Independent brokers (like Basi Insurance Services) have access to a wider array of products from many different companies, which means they can customize a plan that’ specifically suits to your needs, your long-range plans and your budget.
Buying life insurance may not be the most pleasant task, but with an experienced independent broker, it doesn’t have to be daunting. Plus, having life insurance in place is one of the best ways to show your loved ones you care about their future and to help them feel confident and secure that their needs will be met, no matter what the future holds.