Some people compare life insurance to a type of gamble. Although that may seem unusual, there are individuals who think that way. If you bet that you don’t need life insurance and lose that bet, it is your family that pays the price. In the following paragraphs, you’ll learn how to make smart choices about life insurance.
Term life insurance might be cheap, but remember it does not last. Term life insurance is only designed to protect you during the years when you have large home and family expenses, and premiums are much less because you are expected to self-insure when the policy expires. You must remember, however, that traditional life insurance policies are more permanent and you can always borrow against them down the road. Term life insurance, on the other hand, only stays in effect while you are keeping up with the policy’s payments.
Calculate your actual life insurance needs, and let the result guide how much you purchase. Purchasing too much insurance will just cause you to waste money and could cause more stress for your family. It will make you feel better by making wise life insurance choices.
Skydiving, scuba diving, and bungee jumping can increase the premiums on your life insurance. Also, certain occupations, such as a racer or a helicopter pilot, could be considered by the insurance provider to be very high risk. Thus, your premiums will be higher.
Don’t forget to calculate both the ongoing and fixed expenses. These funds should also be used to cover for taxes or the cost of a funeral.
While filling out the application, you should be honest about any occupational hazards or extreme hobbies that might be classified as risky. While this will mean a higher insurance premium, it will also ensure that any claims resulting from such risks are not deemed ineligible. It’s thought of as fraud if you withhold this information, and it carries very large legal penalties.
When you seek online information regarding life insurance, remember to safeguard your personal information. Lots of scammers are out there who claim to provide excellent life insurance, but they really are wanting to steal your information. It is important to remember that the only detail you need to give is a zip code in order to get a quote.
If you’re healthier, life insurance will cost less. It is quite common for insurance carriers to offer discounts to customers who are in better health, as they are more likely to live longer.
Avoid the cost of high commissions when purchasing life insurance. The commission is what the insurance broker/agent gets paid. This cost is usually included in the premium price and can drive your price up significantly. Look for a ‘no load’ policy if you can buy a policy directly.
When you are in the market for life insurance, shop around on the Internet. The best way to go about shopping on the web is to go to a site that compares quotes from multiple providers in real time, and gives supplemental data like user reviews of insurance companies. Insure.com, Insweb and Accuquote are three good places to start.
Earlier this article compared life insurance to a bet. Life insurance is too important, and can put your family’s security at stake.