Buying term life insurance can be a very valuable investment for you and your family. It is not always an easy decision, though. There are plenty of policies out there. Many companies can confuse you when it comes to deciding which is right for your needs.
Yet, procuring coverage does not have to be complex. Instead, break it down into simple decisions. Follow these five steps for buying the best policy for you.
#1: Determine What You Want To Accomplish
The most important decision you have to make is this one: What do you want to leave behind for your loved one if you die suddenly? This is the amount of insurance you should seek out.
- How many debts you have
- How much your income is right now
- How much your mortgage payment is
- How long you aspire to support your loved ones
- If you have any other goals for the funds, such as charitable support
This all helps you determine the value of your life insurance payments. It gives you a good place to start.
#2: Make Sure Term Is Best For You
Next, compare your options.
For some, term life insurance is best. It is a generally low-cost option in place for a specific length of time. However, whole life insurance can be best for those who want to earn income on the policy during their lifetime. You may wish to compare both options to determine which fits your needs best.
#3: What Flexibility Does The Plan Offer?
Term life insurance needs to be flexible enough to meet your goals. This means the premiums as well as the ability to renew your policy at the end of the term can play a role in your decision. Be sure you choose a plan that allows you to include your spouse if you would like to. And, it should provide you with enough protection while remaining affordable.
#4: What Is The Cost?
Determine two things here.
- What is the cost to purchase this policy right now (at your current age and health level)?
- What would the cost be if you were to wait?
You are almost sure to pay less right now than you would later on. As a rule of thumb, the sooner you secure insurance, the better.
Also, consider your ability to renew the policy at a set rate later.
#5: Who Is The Company?
Though most insurance carriers are stable, it is wise to learn about the business itself. Who are these carriers? How long have they offered this coverage?
Most importantly, make the decision with some help. Work with your Affordable Insurance Group agent to choose a policy you feel good about owning.