What to Know About Life Insurance


We may not like to think about life insurance often — the type of insurance that guarantees, in the unfortunate circumstances of death, a designated beneficiary will receive a sum of money from the departed — but it’s important to have a plan.

More than anything else, life insurance offers peace of mind to ensure that your spouse, kids or other family members are protected should something happen to you.More than anything else, life insurance offers peace of mind to ensure that your spouse, kids or other family members are protected should something happen to you.

“Life happens at the most unexpected of times, and life insurance is about protecting the future and the people you love,” says retired professional football player and “Life Insurance Awareness Month” Spokesperson Boomer Esiason. “Remember, if something happens and you haven’t done the planning, the people you leave behind will feel the brunt of your mistakes.”

So what do you need to know regarding life insurance and picking the right plan for you? Find out below.

“There are two basic and important things to consider when determining what kind of life insurance policy to purchase,” explains Ted Bernstein, founder of Life Insurance Concepts. “The first is duration of coverage, and the second is whether you want to use the policy as an investment vehicle, one that will accumulate cash in the future if and when you no longer need the coverage.”

For insurance lasting five to 30 years, you’ll want to choose term insurance, which covers you for a certain duration of time and is the most affordable. If you want coverage throughout the duration of your life, you’ll need what’s called a permanent policy. If it’s in your budget, you can get a permanent insurance policy that will accumulate a cash value, which can be used for whatever you want (many people use it as a retirement supplement).

Insurance Modifications Happen

It’s important to be cognizant of how your plan changes throughout the years, typically when a big life event occurs, such as getting married, getting divorced or having children. While most insurance companies will typically notify users when changes are made, you should still be keeping an eye out for any tweaks made to the policy, since they can be costly. As time goes by, also review the relevance of your policies and make any necessary changes.

You May Need a Higher Death Benefit 

Think about it: Say you’re married with kids who will one day want to go to college, and maybe you have a little bit of debt. A benefit of $1 million might not be enough, even though it may initially seem like a lot. Life insurance coverage depends upon your salary; whether your spouse works; whether you need child care; and your impending debt, such as college tuition, credit card bills, a mortgage and other debt. To help you determine the death benefit, check out the calculators from LifeHappens.org and MSN Money, or contact an agent.

Consider the Policy’s Flexibility

An important notion to keep in mind, Bernstein stresses, is choosing the plan that offers the most flexibility.

More than anything else, life insurance offers peace of mind to ensure that your spouse, kids or other family members are protected should something happen to you.“Whichever policy one buys, the one with the most flexibility is best. There are innovations, improvements and enhancements occurring on a regular basis, and the life insurance buyer should be in a position to take advantage of new and better products in the future,” he explains.

Start Early

The younger you are, the cheaper premiums are, so it’s never too early to adopt a life insurance policy. Also keep in mind that if certain health problems arise before you get a policy, you could risk paying a higher premium or being denied coverage altogether. It’s also important to note that if you have debt, or a mortgage, or kids looking to go to college in the future, but you don’t have life insurance, they unfortunately would not collect anything if you were to suddenly pass on.

To learn more about life insurance and see all the products that are available to help, contact us today.

 

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