5 Questions to Ask Before Purchasing Life Insurance
Your life insurance policy is an important decision to make and one that you should be prepared to consider. There are many options and questions to take into account when looking for a life insurance policy. Knowing what questions to ask can help you find the right policy.
What Kind of Policy Do I Want?
There are multiple types of life insurance policies all geared for different purposes. There are two main types of life insurance policies: term life and whole life.
A term life insurance policy covers you for a set number of years such as 10, 20 or 30 years while a whole life insurance policy lasts as long as you live. Benefits are paid out if the policyholder dies while the policy is still active. Both are useful depending on what you need, so be sure to speak with an insurance agent about the benefits of both to decide which is best for you.
How Much Coverage Do I Need?
Once you know which policy you want, coverage limits need to be decided. How much coverage you have amounted to how much compensation your beneficiaries will receive once they file a claim on your life insurance policy. If you have more than one beneficiary or if you have a lot of expenses to cover (such as a shared mortgage or large debt), you may need higher coverage limits.
Who Should I Name on My Life Insurance Policy?
Beneficiaries are the individuals you name on your life insurance policy to receive benefits at the end of a life insurance policy. These are usually family members and spouses, although practically anyone can be a beneficiary.
In general, it is recommended that you add people who are financially dependent on you. This way, they can receive monetary assistance once you are no longer able to provide for them.
How Much Will It Cost?
Just like coverages can change, so, too can the amount you pay for it. Costs vary depending on your location, insurer, age and other factors. Compare quotes with multiple insurers to find the best price on your life insurance policy.
Where Should I Get My Policy?
Shop around before settling on your policy. Not all insurance agencies are created equally and it is important to insure with someone you trust and save money on the life insurance policy you and your loved ones deserve.