Shopping for life insurance sounds tough, but it is very important if you want your family to have a financial safety net if anything happens to you. When you're looking for a life insurance quote, you'll want to keep certain tips in mind so you get the best quote for the amount of coverage you want.
Choose between whole life insurance or term life insurance
The two main types of insurance are whole life or term life insurance. Whole life insurance lasts for your entire life and acts as an additional investment tool. It can build up value in the stock market or a tax deferred savings account. The downside is that it often carries more management fees and has higher premiums than term life insurance.
Term life insurance is a policy that covers you over a certain amount of time, such 10 years or 20 years, and costs a fixed amount, which is usually charged monthly. This is the most straight forward option without all the bells and whistles and the most affordable. It is a good option for first-time buyers who are starting a family.
Buy a term policy while you're still young and healthy and don't hold it off. The premiums are always lower if you're in better health. An industry rule of thumb is to purchase a policy that is 10 times your income.
Don't fear the medical exam
The most dreaded part of buying life insurance is the medical exam. Even though it's usually only 30 minutes long and at your own home, it still scares most people, as though it's a throw-back to the P.E. fitness tests back in high school.
The life insurance representative will come to your home and run tests and ask you health related questions. It is a good idea to take care of yourself the night before they come and the morning the day of the visit. This help ensure your blood pressure isn't artificially high from stress.
During the questions, it can be tempting to stretch the true or outright lie. This is very risky because the company could later deny a payout if they discover that you didn't tell the truth about your health. You may need to accept the fact that you don't have perfect health and need to pay a little higher premium, because nobody is perfect. This is better than lying on the exam.
For more information, contact companies like Reed & Baur Insurance Agency.
Have you done everything possible to prepare for your family after you pass away? So many of us think that there is always more time to take out a life insurance policy or think that we cannot afford one. What we fail to remember is that there may not be a tomorrow. If you were to pass away today in a tragic accident, would your family be able to survive? Would your family be able to continue living in your home? I started working on this blog after I went to a friend's funeral. It was that moment that I realized that I wasn't ready for death and that if it was to happen at that time, my family would struggle to survive.