Thinking about the prospects of passing away is certainly not something any of us want to do but when you have a family, children, and debt, it becomes something you as a responsible adult should keep in the back of your head as a possibility. Reality is that both you and your spouse will pass away at some point and keeping things nice and tidy for your children when that happens is very important.
This is why, despite what some may think, life insurance is actually a blessing. While it may be a financial burden on you while you are paying it, thinking of how handy it will come to your kids in covering your outstanding debt and funeral costs in case the worst happens will allow you to make the right decision.
That said, life insurance can also be a major problem, should you let yourself be talked into something you don’t really need by insurance advisors who are often looking to increase their fees and commissions, without looking for your best interest first.
This is why being well informed about different types of life insurance and how they affect you is important when looking for life insurance quotes from different insurance companies. So, here are a few tips as to what to look for in life insurance quotes:
Term or Permanent:
There are two basic types of life insurance on offer and these are permanent and term insurance. Whereas term insurance will last for a certain period and usually not include the savings component, the permanent insurance will last until you die and will include it. The permanent insurance will, however, cost much less and for most people term insurance will be a better option. The insurance advisors will usually try to convince you to buy a big fat permanent insurance with huge monthly payments and make big promises, the reality is you should usually look for an insurance that will do just that, insure your family in case worst happens. You don’t need to treat it like an investment, rather like a security measure.
How Much To Get:
When determining how big your insurance policy should be you should usually look for about 5 to 10 times your yearly income. If you are aware you have a lot of debt or a lot of people who depend on you, you should probably go for the higher amount, whereas if your debts are small and your dependents few, there will usually not be a need for too big of a policy. Just make your decision by carefully inspecting your own financial situation.
Get Multiple Opinions:
There is absolutely no rush when it comes to life insurance. While you are getting a policy to help your family in case something bad happens, chances are it won’t happen tomorrow, so don’t just rush into it. Talk to multiple companies’ representatives and analyze what they have to say. Remember, some of them may be trying to get their own agenda through without much care for you. Talking to independent brokers can also be a good decision as they will be able to give you options from multiple companies.
Read The Fine Print:
As with any contract reading the things typed in the fine print is very important. Whether we like to admit it or not, people will try to get things past you and many important things such as potentially variable payments in the future will be slipped into the fine print. Make sure you have read your contract and understood it fully before signing anything.
When looking for life insurance quotes make sure you know exactly what you are looking for, how it will affect your financial situation and what kind of insurance you really need. Remember to talk to your family and not jump the gun on accepting any life insurance quotes one agent or another may throw at you. Take your time and make the decision that is right for you and your dependents.
While there is no such thing as a perfect life insurance policy, as you cannot predict the future, you will want a policy that makes sure your children and spouse are well-taken care for and your debts repaid in case anything should happen to you while also not costing you an exorbitant amount of money per month. Do your research and do multiple consultations and you will be fine.