How to Buy a Good Life Insurance Policy in 3 Easy Steps

Life_insuranceWhen you are interested in finding the perfect gift for your loved ones, you never think about buying a life insurance policy. Why not? After all, life coverage has everything it takes to be cataloged as an excellent present idea. Let’s make one thing crystal clear: this type of policy doesn’t benefit you. It benefits your beloved relatives who depend on your income to survive. Life can be very difficult these days, especially for family members who are too young to get a job and don’t have the financial means required to make ends meet. This is one of the main reasons why life insurance would make such a great gift.

Depending on your financial possibilities, your goals and actual expectations, you can buy term life insurance or permanent life insurance. We are all fully aware of the fact that selecting the right policy can be quite confusing, but with a little help from a competent agent and a premium source of information providing accurate quotes online, you can definitely make an informed decision. Securing the future of your surviving relatives isn’t difficult, as long as you know which steps to follow to get the best coverage.

Why Do I Need Life Insurance in the First Place?

If you care about your loved ones and know for a fact that your premature death would impact their welfare and stop from preserving the lifestyle that you are used to, act fast. Do some research on your own, spot and compare life insurance rates by zip code with Insurance Quote Depot, call different insurance companies, make a list of all the price tags and benefits that come with each policy you’re interested in and buy coverage as soon as possible. Did you know that more than 35 million American households do not have a life insurance policy?

This situation is particularly alarming, taking into consideration that 11 million families included in this category have children under 18. In this case, if one of the spouses were to pass away unexpectedly, who would be able and willing to provide for the child or children left without one parent? Unemployment, limited financial possibilities, lack of interest and lack of research, confusing products and offers launched by some insurance companies are some of the most common factors that stop many Americans from buying the type of coverage that they need to keep risks at bay.

This doesn’t have to be your story. If you are worried about the precarious financial situation of your family members who wouldn’t make it without your monetary support, invest in a life insurance policy tailored to your needs. You can actually pick the best one in record time by simply following the 3 basic steps detailed below:

1)      Decide What Kind of Coverage You Need and How Much You Can Afford to Spend on It

Start by deciding whether you need term insurance or permanent life insurance. The first choice is recommended in most cases, especially if you’re still relatively young. For instance, an adult who has recently reached 40 and has 2 kids, ages 15 and 16, can choose to buy term insurance that that would cover the needs of his or her children for 15 to 20 years, until they would finally be ready to support themselves. If you want to buy term insurance, note that you can make a lump sum payment or you can decide to pay for this type of policy annually, quarterly or monthly. The final choice is up to you, but keep in mind that paying in full is always a good idea, as it usually unlocks considerable savings—helping you avoid additional fees.

Furthermore, one question still remains unanswered: how much money should you actually invest in your policy? There is no simple answer to this question; it all depends on your goals and your financial possibilities. However, remember that most experts in the insurance industry advise breadwinners to buy enough coverage representing the equivalent of 10 to 15 times their annual income. If massive debts are also a piece of the puzzle, a superior level of coverage becomes a must-have. Last, but definitely not least, you should know that permanent life insurance policies are used as extremely cost-effective estate planning tools by wealthy individuals.

If you have many valuable assets; a considerable amount of money deposited in your bank accounts and want to manage your estate the easy way, considering investing in a permanent life insurance policy. However, in this case it would be advisable to rely on expert guidance provided by an attorney or an unbiased estate planner, rather than accepting the first offer made to you by an insurance agent whose objective would be to talk you into buying the priciest policy. Find out how much money you can actually afford to spend on your policy, talk to a specialist in this sector and buy the kind of coverage that appeals to you the most.

2)      Get Free Accurate Quotes Online

Secondly, don’t trust your insurance agent. What he may introduce to you as his best offer may only be his most expensive one. To analyze costs and benefits the right way and avoid potential scams and misinformed decisions, compare life insurance rates by zip code. Once you know how much your ideal life insurance policy costs and what kind of benefits it offers, you can finally make an informed purchase.

3)      Contact Different Insurers

Call at least 3 insurers to get quotes. Schedule a meeting with those who have made you attractive offers. Find out if you are eligible for additional discounts. You should know that it is always preferable to buy all the types of coverage that you require from the same provider to receive a multi-policy discount.

At the end of the day, remember that breadwinners are responsible for the prosperity and the comfort of their family members. Buy the best insurance policy that you can afford to keep risks at bay and secure a brighter, stress-free future for your loved ones.

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