Selecting a life insurance policy can be confusing, seeing as how there are so many options to choose from. Many people opt to go without life insurance because they’re baffled by the various types and coverage amounts. That’s always a mistake.
Fortunately, the situation is changing due to the pandemic. One in three individuals now reports that they’re more likely to purchase a life insurance policy.
If you’re among them, here are some important considerations you should keep in mind when choosing a policy.
Before committing to a policy, you need to determine how much you can afford. To do this, perform a thorough assessment of your current financial circumstances. That way, you’ll be able to make the right choice about the type and amount of coverage you need.
One mistake many insurance shoppers make when selecting coverage is not choosing a large enough amount. Most people underestimate their necessary coverage and only purchase enough to pay off major debts in the event of their death.
You should consider all possible long-term costs, including:
When searching for a policy, a good rule of thumb is to look for one with a death benefit equal to 10 times your annual salary (or more). This isn’t a one-size-fits-all solution, as your situation might demand more or less, but it’s a sensible place to start.
There are two general categories of life insurance policies: whole and term life insurance.
Term policies offer coverage over a certain period — say 15 or 30 years. They can be an affordable way to get needed coverage while you wait to hit another goal, like paying down a major debt so you can afford even more coverage.
You can always convert your term policy to permanent life insurance later on.
When purchasing life insurance, two main factors will affect how much your coverage costs: your health and your age. The younger you are, the cheaper policies tend to be since you’re considered less of a risk to insure; the opposite is true as you get older.
Whatever rate you pay also depends on the type of policy you purchased, whether whole or term life.
You should always compare rates carefully before purchasing coverage. Most companies have many different offerings, and all of their rates vary.
Comparing rates can help you find the best policy at the best price.
You have no shortage of options when it comes to purchasing life insurance in Tallahassee, Florida. The company you work with should be able to answer your questions and help you feel comfortable with your new coverage.
When preparing for a meeting with an insurance agency in Tallahassee, Florida, make sure you come with a clear presentation of your current financial situation and long-term financial goals in order to get a policy that works for you.