Life insurance is one of the biggest investments that you’ll ever make for your loved ones. It’s one of the only ways that you can guarantee that your family will have the resources that your loved ones need, regardless of what happens to you.
3 Questions to Ask When Buying Life Insurance
Shopping for life insurance can be a difficult task. There are several different factors that you will need to consider to ensure that you’ve got the best insurance protection for your loved ones. Luckily, there are a couple of questions that you can ask yourself and that should lead you to the perfect insurance plan for you.
One of the primary reasons for your life insurance coverage is to give your loved ones the money that they need to replace your paycheck if you were to pass away. If your spouse doesn’t have an income, then they would struggle to pay for any necessary bills if something tragic were to happen to you.
If your children still live in your home, then you will want to make sure that your life insurance policy is large enough to replace your monthly income. The more children that you have, the more life insurance that you need to buy.
On the other hand, if you no longer have anyone that needs that source of income, then you can consider skipping the life insurance plan or purchasing a smaller plan. Smaller life insurance policies are going to save you money every month.
How Many Bills Do I Have?
The next question that you should ask yourself revolves around all of your debts and other final expenses. If you were to pass away, all of your debts are going directly to your family members. Not only will they have to deal with the emotional pain, but they will also be burdened with financial struggles as well.
Before you apply for any life insurance protection, make sure that you add up all of your unpaid bills and debts. This should include your mortgage, any student loans, business loans, car payments, credit card bills, and any other expenses that your loved ones would have to pay off. Make sure that your life insurance plan is sufficient to cover your total debts.
One of the worst things that can happen is for your life insurance plan to be too small. That would leave your family with additional debts that they wouldn’t have the money to cover.
Should I Combine Coverage?
There are several different kinds of life insurance on the market. Each type has different pros and cons that you will need to look at when you’re shopping for protection. While there are plenty of subtypes of coverage, they are broken down into two main kinds: term or whole life insurance.
Depending on how old you are, your health, and your finances, you might consider purchasing two policies and combining your coverage. Some people purchase two kinds of plans, both a term and whole life insurance plan. That allows them to have additional coverage, and to purchase a whole life insurance policy (for a smaller face value) when they are younger, and it’s cheaper.
Working with an Independent Insurance Agent
The best way to ensure that you’re getting the perfect life insurance plan is to work with an independent insurance agent. Unlike a traditional agent, independent broker work with dozens and dozens of highly rated companies across the nation. Working with an independent agent is going to save you both time and money on your life insurance search. Regardless of where you live, there is a broker that can help connect you with the perfect life insurance policy to protect your family.
You never know what curve ball life is going to throw at you tomorrow, which means that you shouldn’t wait any longer to get the life insurance coverage that your loved ones deserve. Nobody wants to think about his or her death, but it’s important that you plan for the worst. Don’t wait another day to get life insurance.
These are only a few questions that you should ask yourself. There are several factors that you will need to take note of when you’re shopping for the perfect plan. An independent agent can walk you through the process and ask you all of the questions that you will need to answer.
Are you thinking about buying life insurance?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.