Looking to purchase Affordable Life Insurance?
How Much Coverage Do You Need?
How much of the family income do you provide? Do others depend on you financially? How will your family pay your final expenses and debts after your death? Decide how much coverage you need, for how long and what you can afford to pay. Buy enough life insurance to cover the financial effects of an unexpected or untimely death.
Current Policy?
If you have a life insurance policy, do not cancel it until you have received the new one. You then have a minimum period to review your new policy and decide if it is what you want. You may not have to cancel your current policy. You may be able to change your policy to get the coverage or benefits you want.
Compare The Different Kinds of Insurance Policies
There are mulitple types of life insurance: term insurance and cash value insurance. Term insurance generally has lower premiums in the early years, but does not build up cash values that you can use in the future. Cash value life insurance may be one of several types: whole life, universal life, index life, and variable life. Your choice should be based on your needs and budget.
Can You Afford the Premium Payments?
Before purchasing a life insurance policy, be sure that you can handle the premium payments. Can you afford the initial premium? If the premium increases later, will you still be able to afford it? Some policies increase in premium over time so be sure and talk with your Affordable Insurance Agent regarding the payment plan of any life insurance policy you are looking to purchase.
Have an Insurance Agent Help You Evaluate Your Policy
How quickly does the cash value grow? Some policies have low cash values in the early years that build quickly later on. Other policies have a more level cash value build-up. Ask your Affordable Insurance agent for a year-to-year display of values and benefits.
Keep your current policy
It is important that you do not drop one policy and buy another without a thorough study of the new policy and the one you have now. Replacing your insurance policy may be costly.
Understand Renewal Policies
You can renew most term insurance policies even if your health has changed. Each time you renew the policy, premiums may be higher. Ask what the premiums will be if you continue to renew the policy. Ask if you will lose the right to renew the policy at a certain age.
Read Your Policy Carefully
Do premiums or benefits vary from year to year? How much do the cash benefits build up in the policy? What part of the premiums or benefits is not guaranteed? What is the effect of interest on money paid and received at different times on the policy? These are all questions that you should be able to answer by reading your policy thoroughly. Your Affordable Insurance agent can help answer any questions you may have.
Review Your Life Insurance Program Every Few Years
How will inflation affect your future needs? Do you need more insurance when your family size increases? As you increase your family debt do you have enough coverage to protect your family? Review your policy with your Affordable Insurance agent every few years to keep up with changes in your income and needs.