Nobody likes to think about their mortality. It is a frightening thought, and for good reasons. But to responsibly plan, it is something that we must keep in mind.
One of the best ways to prepare for when you are no longer around is to provide for those you’ll leave behind. And one of the best ways to provide for them is to buy a decent life insurance policy.
Insurance can be a complicated issue, but this makes it that much more comprehensive and helpful to those who benefit from it. Here’s how you can take the confusion out of finding life insurance quotes.
What to Consider
The most important part of picking a life insurance policy is to determine what features fit your needs the best. Most plans do not exceed thirty years on any provision, and there will always be provisions offered that you do not need.
For instance, if you are 40 and come from a family whose members have a life expectancy of around 50 years, you likely won’t be needing a 30-year life policy. Also, if you have children in their 20’s, forking out for a 20-year college tuition policy will cost more than you need.
Buy what you estimate you will need, and never for terms longer than you think you need it for.
Another thing to do is to schedule a medical exam. Most life insurance companies will require this before you apply anyway, so it’s best to get it done with beforehand. There are plenty of companies that don’t need exams for specific policies, but those policies can cost twice as much, and do not necessarily provide significantly better coverage.
When working with your agent, you need to make sure they are completely upfront with you. There are two precautions you can take to ensure this.
First, ask them to print out all the available quotes so that you can decide if they’re pushing you towards the best deal. It’s not illegal for them to sell you one way or the other, but some might push most of their clients towards a company in exchange for payouts from that company.
The other way to keep your agent honest is to keep your answers to their questions short and to the point, and never volunteer information that they do not directly ask for. For instance, if they ask if you’ve ever had mental health issues and you haven’t, don’t say “No, but my father suffered from depression.” Just say “No” and leave it at that.
Giving them too much information could make them think you have liabilities you’re not disclosing, which might raise your premium. Again, trapping you in this way isn’t illegal or unethical, but they would be fools not to take advantage of such a slip-up.
The final thing to keep in mind which many people either overlook or deliberately avoid is to sign up for your beneficiaries to receive payouts in annuities rather than lump sums. Both are tax exempt but pay relatively the same on paper. However, annuities will pay more when interest is considered, and these policies do have lower premiums.
Taking care of our loved ones is a priority no matter what stage of life you are in. Having the right life insurance policy will make sure they are cared for regardless of what happens to you. Do it right, and they’ll be better off for years.