Shopping for life insurance isn’t rocket science, but shouldn’t be taken lightly as well. Before shopping for insurance, make sure to check out this article as we deliver all the important issues that shoppers commonly tackle when shopping for life insurance policies.
- Rated life insurance and for those with health problems
If you are in the life insurance application process that features a rating, it is recommended to work with a broker. A life insurance broker will be able to help you in obtaining quotes across different insurance providers.
Bear in mind that insurers assess certain medical issues differently. If you are in poor health condition, do not settle for a term policy. Permanent life insurance is a great option for those who need guaranteed death benefits.
- Cash value component
Is it right to buy a policy that builds cash value over one that offers death benefits only? The answer to this will largely depend on your personal needs. Majority of us purchase insurance for its leverage. We all want to pay cheap premiums and expect substantial death benefit in return.
If you are doing estate planning or if you need funding for special or emergency cases, then it may be right to purchase permanent life insurance. Apart from these reasons, it may be best that you stick with a level term life insurance policy.
Policy owners of term life have the option of switching to permanent life insurance once they have established a more stable cash flow and income.
- Level, Decreasing, or Increasing Death Benefit?
As mentioned earlier, term life insurance only offers level death benefits to dependents. Permanent life insurance on the other hand allows for clients to select between level or increasing death benefit. If you decide to purchase permanent life, make sure to choose that option that will enable you to switch from level to increasing or vice versa.
You life insurance policy should reflect your unique needs. Do not hesitate to ask your insurance broker about certain issues that are unclear to you. Take your time, and don’t be pressured into buying insurance right away. Do your homework so you get approved for a policy that can give you utmost security and protection.