Which Life Insurance Policies to Buy
There are so many different life insurance companies that offer so many different types of life insurance policies. It can be overwhelming to weigh out all the options and pick the best policy for your situation. This article will give you a few tips that you can use to compare life insurance policies effectively.
Assess Your Needs
The first step that you need to take is to assess your life insurance needs. This refers to the death benefit you need to cover your family’s financial needs after your death. If you are uncertain how to obtain your death benefit need, a qualified financial planner can help you accurately calculate your life insurance needs.
You will need to determine what type of policy will best fit your needs. Before you start looking for a policy, you should know if a term, whole, guaranteed universal index, or universal life insurance policy will work best for you. This choice is also something that your financial planner can help you to make an educated decision on.
Get the Most for Your Money
When comparing insurance policies it is important to take premiums into consideration. It is possible that each insurance company will charge different premiums for a policy that has the same face value. Here are a few things that you should look for when comparing premiums:
- Will premiums vary from year to year? Will benefits vary from year to year? Be sure to double check if your premiums and benefits will stay the same each year, or if they will change as time goes on. If they will change, find out what the difference will be.
- If you are looking at policies that have cash values, you will want to compare the cash value projections of each company. Keep an eye out for cash value projections that seem unrealistic.
- What additional charges and fees does the policy carry? Look out for fees that are not built into your premium. For example, is there a surrender fee, or fees for taking withdrawals on your cash value.
- What additional riders are available? You may want to add on to your policy later on, will the insurance company allow you do that through riders? If you can, you will want to compare the prices and the time frames you have to purchase the additional coverage.
After you compare these points you may find that a policy may have a higher premium, but offer more features than the policy with a lower premium. You will have to decide which you prefer
A financial planner can help you run more in-depth policy comparisons. They also provide additional insight to which insurance companies offer good customer service, and which are strongly rated companies, they know what companies are trustworthy and will stay around to see your investment through. They will also be able to answer all of your questions in an unbiased way since they are not employees of any insurance company.
To sum up, do not leave your family’s future to chance. Take the time to thoroughly compare all of your options and enlist professional help to ensure that you have covered all of the facets of each policy.