Choose a Life Insurance Policy
Learn what to look for in choosing a life insurance company, one that you may be doing business with your entire life. It's important to know how these companies operate so you can decide which company has all the traits that fit your needs.
Whether you're recently married, a new parent searching for term life insurance, or middle-aged and in need of a whole life insurance policy, being an informed shopper will empower you to compare and choose the right life insurance company.
What is the Right Insurance for Your Family?
Before buying insurance, you must decide what is right for you and your family. Think about savings and cost before you decide on term or permanent insurance. Permanent insurance allows you to save through the build-up of cash value. Sometimes a cash value policy must be held for several years because most have no cash value at the end of the first few years. If you drop a cash value policy too early, you will lose money.
Think about your tax situation. If you are in a high tax bracket, permanent insurance may be good because the savings built up in the policy are tax-deferred. Within permanent insurance the face value of your life insurance policy will be available to your family immediately after your death. With ordinary investments your family may have to wait for the benefits or be forced to sell investments at a loss.
You will have to study different insurance policies before deciding what kind and how much insurance to buy. Your situation and insurance policies and provisions will change, so new possibilities will be open to you. No one can give you an exact formula, but you might keep these suggestions in mind:
- Study your needs as a family. You must make the decisions as to which are the most important needs now and how much you can afford to pay for insurance that will protect you in the future.
- Insure first the risk that would be most damaging if it occurred.
- Review your insurance needs at least annually and more often if there is a change in the family: marriage, birth, new home, more possessions, etc.
- Select an agent you can trust. Your most valuable guide in buying insurance is a reputable agent. A competent agent will take into account your needs now and any future needs you may have.
You will want to review your program with your agent periodically as family needs change. Having an agent you can trust will ensure that you are not over- or under-protected with insurance.
Learn how easy and convenient shopping for life insurance can be. Get your free life insurance quotes today!