Although life insurance isnt required like car or homeowners insurance, the power of life insurance can bring peace of mind as it prepares and ultimately protects against life’s uncertainties (the unthinkable) and helps your family achieve their financial dreams.
According to the 2016 Life Insurance Barometer Study, 86 percent of consumers agree that people need life insurance. The study also reveals that most Americans would have trouble paying living expenses if the primary wage-earner died. Here are a few important tips that can help you make the right choice when selecting your life insurance company and policy.
First: Life is the only thing we know wont last forever
If youre married, have a family, children, or own a business, you worry about money constantly. Will there be enough money left for retirement and how, should the unthinkable happen, will you protect the future and financial dreams of the ones that mean the most to you? Consider life insurance.
Its a tough subject. No one likes to talk about life insurance but it can be a powerful tool to protect the things youve worked your whole life for. If youre not sure if you need life insurance, ask yourself some simple questions.
How much do you have in savings today? Do you make enough money to support your family after you are gone (and most Americans do not)? How will your family cover the mortgage or rent, college and basic living expenses? What about unexpected medical expenses? If kiddos are involved, there can be high costs for child care or private schools. Oh yeah, dont forget about how much funerals cost. These costs add up quickly.
Life insurance can be a powerful pillow of protection that will make you sleep better at night. Why? If you die unexpectedly, your beneficiary will get the money from your life insurance plan and avoid having to drain any savings, cash in a 401K or deplete the assets youve worked together to create over your lifetime. How do you want to be remembered?
Second: Life insurance can be complex
Youll want to work with a life insurance expert on the options that are best tailored to your life. One option to discuss is term life insurance.
Term life insurance offers an easy and affordable way to cover financial obligations – like college, a mortgage or a business loan. Not sure what term to take? Look at what will need to be done with that money after your death. For example, if you have newborns, a 25-year term policy will assure those kids are protected if anything happens to you before theyre able to provide for themselves. If you have a 30-year home mortgage, consider that as your term, to protect your house until its paid off.
Third: The Time Invested Is Well Spent
Getting the right life insurance policy isnt done overnight. When researching a life insurance company or advisor, work with a company that doesnt live on the surface but digs deep to provide you the best coverage at the lowest price. A great insurance company will ask many detailed questions about your health history. They will want a health screening conducted at your home or office as well. After the exam is completed, be prepared for the process to take a couple months to be finalized.
The right advisor will explain in detail the steps youll be taking and will guide you throughout the process. Why does it take so long? Its all about matching people to the best policy option based on health history, coverage needs and policy term desired. Its time well spent.
Life insurance can be a powerful tool to have in place should life happen. When youre ready, contact SelectQuote. We work for you, not insurers. Its how we became Americas #1 independent term life sales agency. We impartially shop highly-rated insurance companies to find you the right term life policy to fit your budget and your needs.