Although life insurance isn’t mandatory like car or homeowners insurance, it can be a powerful component to your “peace of mind” as it prepares and ultimately protects against life’s unknown (the unthinkable) and helps your family reach their financial goals and aspirations.
According to the 2016 Life Insurance Barometer Study, 86 percent of Americans agree that people need or could high benefit from life insurance. The study also reveals that the majority of Americans would have trouble being able to afford common, every day living expenses if the primary wage-earner died. Listed below are a few important tips that can advise you make the right choice when selecting your life insurance company and policy.
First: Life is the only thing we know won’t last forever
If you’re married, have a family, children, or own a business, you worry about money constantly. Will there be enough money left for retirement and how, should the unthinkable happen, will you protect the future and financial dreams of the one’s that mean the most to you? Consider life insurance.
It’s a tough subject, and not commonly spoken of. No one likes to talk about life insurance but it can be a powerful tool and protection in advocacy for the things you’ve worked your whole life for. If you’re not sure if you need or could even benefit from life insurance, ask yourself a few simple questions.
How much do you have in savings today? Do you make enough money to sustain your family after you have passed (and most Americans do not)? How will your family and loved ones cover the mortgage or rent, college and basic living expenses? What about unexpected medical expenses? If children are involved, there can be high costs for child care or private schools. Oh yeah, don’t forget about how much funeral’s cost. These costs add up quickly.
Life insurance can be an enormous pillow of protection that will make you sleep better at night. Why? If you die unexpectedly, your beneficiary will get the money from your life insurance plan and avoid having to drain any savings, cash in a 401K or deplete the assets you’ve worked together to create over your lifetime. How do you want to be remembered?
Second: Life insurance can be complex
You’ll want to work with a life insurance expert on the options that are best tailored to your life. One option to discuss is term life insurance.
Term life insurance offers a simple and affordable way to cover financial responsibilites – like college, a mortgage or a business loan. Not sure what term to take? Look at the overall purpose for the money after your death. For example, if you have newborns, a 25-year term policy will assure those kids are protected if anything happens to you before they’re able to provide for themselves. If you have a 30-year home mortgage, consider that as your term, to protect your house until it’s paid off.
Third: The Time Invested Is Well Spent
Getting the right life insurance policy isn’t done overnight. When researching a life insurance company or advisor, work with a company that doesn’t live on the surface but digs deep to provide you the best coverage at the lowest price. A great insurance company will ask many detailed questions about your health history. They will want a health screening conducted at your home or office as well. After the exam is completed, be prepared for the process to take a couple months to be finalized.
The right advisor will explain in detail the steps you’ll be taking and will guide you throughout the process. Why does it take so long? It’s all about matching people to the best policy option based on health history, coverage needs and policy term desired. It’s time well spent.
Life insurance can be a powerful tool to have in place should life happen. When you’re ready, contact SelectQuote. We work for you, not insurers. It’s how we became America’s #1 independent term life sales agency. We impartially shop highly-rated insurance companies to find you the right term life policy to fit your budget and your needs.