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Five Things to Consider

Five Things to Consider When Choosing Life Insurance

1. Shopping and Comparing Prices

Prices vary dramatically from different companies for the same life insurance policy. So working with a company that has access to a variety of options allows you to get the best rates for your situation. 

2. Buying the Right Amount of Life Insurance

If you pass away, your dependents lose the paycheck and income that you brought home each month. To replace your income and help your family maintain their standard of living, think about how much investment capital your dependents would need for a given period of time.

3. Buying the Right Kind of Life Insurance

Term insurance typically works best for most people. We need life insurance to protect our families during the period that we work and earn a paycheck. For most of us, once we retire, the need for life insurance is greatly diminished. Therefore, high priced life insurance products are typically not necessary.

4. Reviewing Existing Life Insurance Policies

Rates and products are constantly changing and term life and permanent insurance rates are at all-time lows. The best rates available to you now may be significantly lower than what you are currently paying on existing policies.

5. Canceling Or Letting Your Policy Lapse Before Doing Your Homework

Many people let their policies lapse or cancel them before having adequate coverage to replace them or before finding out what the policy may be worth in the Life Settlement market. Many term-life policy holders age 65 or older may be able to “sell” their term policies for cash and permanent insurance policy holders may be able to get more money than their cash surrender value.