When buying life insurance there are several things that you should carefully consider. The list below includes some of the more important things to think about when buying life insurance. Before you purchase a policy, you owe it to yourself and family to review these items so that you can select the best policy that fits your needs.
- Make sure you carefully review your financial circumstances and goals and choose a policy that fits your specific situation, see what type of life insurance policy should I buy? Also, make sure that you are buying the right amount of insurance see how much life insurance do I need?
- Discuss your circumstances and needs with at least 2 insurance professionals. Using the expertise of more than one agent allows you to gain insightful information that will help you make the best decision. However, make sure that you are speaking with a professional broker who represents a number of companies.
- Carefully review policy options. Make sure the policy you are considering makes practical and economic sense. Does the policy meet your goals? Ask yourself if you can afford the policy premiums if circumstances change slightly.
- Check the financial ratings of the insurance companies that you are considering. Make sure your company has at least an “A” rating with AM Best.
- Know your insurance policy and how it works. Don’t just trust an agent and buy a policy without understanding why a particular policy works for you. Ask questions. Is the coverage guaranteed? Will my rates increase? What are my options?
- When completing the insurance application, answer all questions truthfully and honestly and scrutinize the application for accuracy before signing any paperwork.
- Make sure that you fast prior to your insurance exam. It assures the best result and may save you serious money. See, tips for best results on your life insurance exam.
- Be committed to your life insurance program. After all, it’s your family’s financial security at stake! Do not over-commit! Buy what you need and stick with it!
- Use realistic expectations. Realize that many types of policies are illustrated on a projected but non-guaranteed basis. The actual policy results will vary over time and may be considerably lower than projected. It is better to be more conservative than aggressive when projecting values into the future and it is always best to buy guaranteed policies.
- Do not discontinue or cancel an existing policy without careful consideration. Additionally, call your existing insurance company and ask questions to clarify any concerns. If you do decide to replace an existing policy, make sure that the new policy is better. Also make sure that the new policy is paid and in effect before canceling any previous policy.
- Read your entire policy and make sure that you understand the terms. Contact your agent or insurance provider with any questions.
- Periodically review your life insurance plan to make sure it continues to meet your needs. As your income grows and needs change, you may want to increase insurance coverage or diversify your life insurance by adding additional policies.
The above list contains many of the most important things to consider before buying a life insurance policy. The most important consideration is to get a credible life insurance broker that is an advocate for you and your family. Please call MEG Financial now at (877) 583-3955 with any questions or concerns or receive an instant life insurance quote.