What to Consider When Buying Life Insurance Plans
Whether you’re purchasing your first life insurance policy or adding a new policy to your current financial plan, there are several questions you'll want to answer to determine your needs and help you decide which plan and insurer to select for your life insurance.
Are you shopping for a new life insurance policy?
If so, there are some important things for you to consider before making your choice of policy, coverage amount and carrier.
What is it smart to do when buying a life insurance plan?
When buying life insurance it is smart to do the following:
What are some of the main considerations to be aware of when buying a term life insurance policy?
Since term life insurance is temporary coverage for a specific duration, you will want to consider how long you really need your life insurance protection to last. This is one of the most important considerations regarding term insurance.
Here are several of the most common considerations for term life insurance:
Here’s how you can learn more about term life insurance coverage and how it works.
Helpful Resources to Assist You in Buying Life Insurance:
Beneficiary – Decide who will be the beneficiary of your life insurance. Learn about beneficiaries of a life insurance policy.
Ownership – Name yourself as owner of the policy so you retain rights of determining who is beneficiary and who can make any changes to the life insurance policy. Learn more about out who should own a life insurance policy.
Spouse/Partner Life Insurance – Decide if you need life insurance on your partner or spouse. Learn about life insurance for your spouse.
Payment Options – Consider setting up automatic payment of your policy premiums from your savings or checking account so you do not miss paying your premiums on time.
Financial Strength Ratings – Learn about the importance of financial ratings of insurers and how they are determined. Learn about AM Best insurance ratings.
Things to Do After Buying Your Life Insurance:
Security of Policy – Select a safe place you will keep your life insurance policy. Many people choose to keep their policy in a Safe or Safety Deposit Box.
Beneficiary – Once you have purchased your policy make sure you write out instructions for your beneficiary on what to do to make a claim on the policy if you pass away. Also, let your beneficiary know you do own life insurance and they are named beneficiary.
The insurance company will not pay out a claim on your policy until they are notified by your beneficiary of your passing, and the proper paperwork has been completed and sent the insurance carrier.
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