Erasing Confusion Part II
This week we will continue providing information which we hope will demystify purchasing life insurance.
Consideration 6: Your life #insurance rate is primarily affected by two things: your #health and your #age. The younger you are when you purchase insurance the cheaper the insurance tends to be. This is, in part, because when you are younger, you tend to be healthier and less at risk of serious health issues. Needless to say, the type of policy you select will affect your rate. One option to consider when purchasing a more affordable Term Policy, is to ensure it has the option to convert to a permanent life insurance policy, which can lock in your rate.
Consideration 7: While the cost of the product is certainly a consideration, it’s not the only consideration. You want to look at any internal costs within the policy. Look at what is #guaranteed and what is not guaranteed within your policy. Look for a product that is through a reliable and well-established insurance carrier. These policies might cost a little more, but in the long run, you have the history of a reputable company behind your policy.
Consideration 8: Prepare to spend some time when you are talking to an agent. Prepare to ask your questions but also be prepared to answer theirs. This is the time to get everything on the table. If you don’t feel confident, walk away.
Consideration 9: The #underwriting process can take some time. Be sure to lock in temporary coverage while you’re waiting for this process to complete. You can do this by attaching a check for the first month’s premium.
The word insurance means “a thing providing #protection against a possible #eventuality”. We may not want to think about our own death or the death of a loved one, but this is more than a possible eventuality. We hope that it won’t be until they have lived a long and productive life. But hope is not a strategy. Insurance allows you to have peace of mind that if something happens to you or anyone else, the person remaining will not be in financial chaos on top of the highly emotional experience of losing someone they love.