When strategizing a plan to protect your family’s future, life insurance may be an immediate addition to your portfolio. However, the process to obtain the policy may get complex and lengthy. To help make the process easier and fast, consider seeking the help of a licensed insurance Agent. Working with an insurance Agent can be valuable for several reasons.
There are common misconceptions about using insurance Agents, such as the assumption that you have to pay for their services. However, insurance Agents are complimentary and can help you save both time and money.
With so many options in companies and coverage, it’s important to compare quotes and coverage amounts before making a purchase. Comparing rates could save you hundreds of dollars on your coverage. Among many other things, comparing rates yourself could take significantly longer than to use an insurance Agent.
If you buy too much coverage, you’ll be paying excessive monthly premiums. If you buy too little, you risk leaving your family needing more.
DISCOVERING YOUR NEEDS
Any insurance company will have a variety of policies to choose from, each with their own advantages and disadvantages. When finding a policy for your loved ones, you should consider what your needs are based on your situation.
When it comes to life insurance, consider two different types of policies: whole life and term life. A whole life insurance policy lives as long as you do, while a term life insurance policy is active for a certain period of time. Additionally, there are subsets of policies such as final expense or burial insurance. Your insurance Agent can help you with all of these things.
Purchasing the right amount of coverage is a healthy balance between determining how much your loved ones will need and avoiding buying too much coverage. If you buy too much coverage, you’ll be paying excessive monthly premiums. If you buy too little, you risk leaving your family needing more.
When determining your life insurance needs, there are several financial factors.
- First, think about how much debt and unpaid expenses you would leave for your loved ones should you pass. The largest debts can be a mortgage, student loans, credit card or medical debt.
- The other thing you should factor in is your income. The secondary use of life insurance is commonly replacing lost income. If you are the primary earner in your household, you’ll want to ensure you purchase enough coverage to give your family a financial padding should you pass.
- Not purchasing enough coverage could add more financial burdens on your family and make a saddening and stressful situation worse. You should also know your life insurance needs will likely change as you enter new phases of your life. This will require you to reevaluate your policy every few years, another task an insurance Agent could help you with.
Purchasing life insurance can be a stressful process, but working with a licensed insurance Agent can help make a difference in your experience. A life insurance Agent’s job is to ensure the process of protecting your family’s future is as seamless as possible.
This article does not constitute as financial advice.