Getting a life insurance policy does not have to be a daunting task. If you read the tips below, you will see that affordable, reliable life insurance can be easy to find. Our tips will show you the way to find the insurance that fits your personal needs and will save you the most money.
If you are between the ages of 20 to 50, term life insurance is the simplest and most effective type of insurance. Cash value insurance truly makes sense for those who are wealthy and over the age of 50. A cash value plan may be tempting, but it won’t be as effective.
Be careful to not buy too much or too little insurance coverage. The general rule of thumb is to have at least 5 to 7 times your current salary as your benefit amount. Keep in mind what will have to be covered based on your families needs. Many people also make the mistake of buying too much and end up with inflated insurance premiums for coverage they don’t really need.
When choosing an insurance amount you should consider one-time expenses, as well as the ongoing needs of your family. The funds from life insurance are often used for large expenses that are one time only, such as funeral expenses and estate taxes.
When purchasing a life insurance policy it is vitally important that you are completely 100% honest when answering questions about past medical history and other items raised such as drug use. An insurance claim can be declined if it is ever determined that the initial information provided was not true.
Although term life insurance covers you for only a specified period of time, it does have some benefits that may make it the right choice for you. Term life insurance is vastly cheaper than whole life insurance, costing hundreds of dollars a year rather than thousands. It is flexible in that you can choose to be covered for as few as 5 or as many as 30 years with coverage ranging from $100,000 to millions. For short term needs, such as children graduating from college or a mortgage being paid off, term life insurance is ideal, especially if whole life insurance is not in your budget.
If a relative of yours recently died and named you as the beneficiary on his life insurance policy, but the policy itself is missing, there are steps you can take to locate the policy, even if you don’t know which insurance company issued it. Examine the deceased’s canceled checks for any that were written to insurance companies. Look through any mail you can find for insurance bills or policy status notices. Check with former employers or organizations that the deceased belonged to which may have offered the policy. Look at tax returns for expenses or interest earned in regard to life insurance. Finally, check with the Medical Information Bureau, which has a database that can inform you if the medical records of the deceased were requested by any insurance companies since 1996.
As you can see, anyone can find insurance that will offer the coverages they need at a price they can afford. As long as you shop around for what you need and follow our tips, you will discover that acquiring life insurance will no longer cause you to cringe.