Your life can be hectic and busy before you know it the things you meant to take care of getting put off for later.
Most people don’t have nearly enough insurance. Perhaps, you don’t even think about health insurance. It may be at the bottom of your to-do list. But if you don’t plan for these things, you may be cheating yourself out of the best policy in the long run that frees your family from the financial burden your death put on them. Below are some tips that will help you find the right health or life insurance.
Tip Number One
Do your homework and always go for a company that has been established and has a good reputation. Insurance companies that have a top rating are the best. Weiss Rating, Moody’s Investor Service, Standard & Poor's and Fitch Ratings are organizations that rate insurance company and Fitch Ratings represent one of the top three credit rating organizations.
Tip Number Two
Don’t just pick out the first policy that you find or hear about. You can always go online and look up which company has the best deal to offer. According to consumer advocate.org, they offer some of the best quotes on life insurance. They target the best policy for you and your family whether you're a couch potato, runner or a vegan. Consumer Advocates will recommend a policy fit for you and your family.
Tip Number Three
How long will you need your insurance policy and how much do you need? Quite a few financial advisers believe that you should have ten times the amount of life insurance needed to replace your wages. You also must understand what type of life insurance you need. For example, term life designated to last for a certain period during your lifetime. You have the option of getting a whole life or universal life insurance.
People normally use whole life policy for burial or help out with expenses after a spouse has passed on. Term insurance has less of a premium, but it also means you can’t borrow from it or build up value. With whole life insurance, you can borrow from it, but you’ll also pay more. Take your time and figure which type of life insurance fits your needs.
Tip Number Four
Pick the right beneficiary. You want to leave something to your beneficiaries including your children. Many states have restrictions on making children beneficiaries. Your child may not get the full funds. Insurance companies are also not allowed to give out money to someone under age unless your child has reached the age of 18, the legal age in most states. The best option would be to make a spouse, a close relative or someone you trust the beneficiary for your children. Talk with an agency to find out the best way to go about naming someone as the beneficiary.
Tip Number Five
Don’t go for a policy because it's less expensive. The cheap policy doesn’t mean it’s the right one for you. Play it safe with your money and future, get to know what you’re buying.
Tip Number Six
Find out from your agency about policy riders. With riders, you can personalize the policy that fits you, and your family considers it like having extra security on your insurance. There are many types of riders insurance. Such as accelerated death benefit rider. This rider gives you money in the event you become extremely ill. The money can help pay your medical treatment or provide for your expenses while you’re alive. In the event of your death, the money is simply deducted that you’ve already spent, and the beneficiary gets what left. The next option and close to the accelerated death benefit rider would be Long Term Rider insurance.
Long Term Rider insurance provides money if you have a debilitating illness. Choose carefully when picking the best rider insurance. Guaranteed insurability rider gives you the option to expand your policy in future dates, and you don’t have to give updates on your health. If you are a smoker or diabetes runs in your family, you may want to consider this policy.
Tip Number Seven
Get to know all the details in your renewal policy clause and read carefully everything that had been included in your policy. You don’t want any unpleasant surprise to pop-up when you need your policy the most, nor does your loved ones after you’re gone so beware of what you’re committing yourself to. Remember to read every detail and seek out the answer to any question that comes to your mind.
Other things to consider would be asking your agent to explain the policy and go over any details that are not clear, figure out if you have the best premium that you can afford. These tips will help save you time and headaches when you’re ready to purchase insurance.