We all know getting life insurance is an important step in building a financial plan, and that it's easy to put off getting a policy because of uncertainty about life insurance and how it works. With these 10 expert tips, you'll be prepared to make the purchase that will protect you for life.
1. Consider why you need life insurance
Life insurance doesn't simply insure your life; it helps ensure the well-being of your loved ones if you're unable to do so.
2. Maintain your health
Make wise health decisions today - you may need to undergo a medical exam to determine your insurability. The better your health, the better your policy rate. Take advantage of the opportunity to save money by getting in shape.
3. Determine the right amount of coverage
Before selecting an insurance company, figure out how much coverage you need. Online calculators can help determine your life insurance and other financial needs. A simple, alternative approach is to multiply your annual salary by seven; the average recommended amount of coverage.
4. Choose a provider
One of the best ways to buy life insurance is directly through a life insurance company. Just like certain stores specialize in clothing or electronics, life insurance companies specialize too. Do research to find the one that fits your situation. Use the Internet, friends and family; they're all valuable resources.
5. Consider your preferences
The Internet is one of the most efficient ways to maintain your policy. Find a company with the technology that allows you to manage your account and conduct transactions online. A good company will offer multiple alternatives. Perhaps you prefer to make transactions in another language, over the phone or in person. Look for a company that offers these options.
6. Do your homework
Once you have selected an insurance company, get a quote online so you have more information to help you in your decision-making process. Think over the questions you'll be asked. Who are your beneficiaries? What's your financial situation? What do you plan to use the coverage for?
Then call to speak with a licensed agent, or consider purchasing your policy online. Your agent will have an understanding of the changes you face that could affect your coverage or beneficiaries, and will work with you about coverage for life stages such as marriage, starting a family, or retirement.
7. Find the policy that works for your life stage
There are many different types of life insurance products, and learning about the available options will provide you the most comfort and security. A term policy will help you secure protection at the lowest rate for a specified period of time. If you can pay a little more money, a whole life policy may allow you to lock-in a more affordable rate early on, keep that rate for life, and give you the option to borrow the cash value of the policy.
8. Consider the financial benefits of the policy you choose
Life insurance policies offer many financial benefits. Under current tax laws, your beneficiaries may not have to pay federal income tax on the money they receive from a life insurance policy. Accelerated death benefit riders, under certain circumstances, may allow you to receive a percentage of your life insurance death benefits during your lifetime.
9. Create a relationship with your insurance company
When you speak with your insurance company, write down the name of the agent that helps you, and what's discussed, so you'll be prepared for any follow up. Check the company's Web site for updates and take advantage of additional financial tools and resources the company has to offer.
10. Manage your financial future
Be proactive in making sure you have the right coverage at every stage of life. Periodically review your personal circumstances and the products you own. Make sure your coverage fits your needs and does not lapse.
Despite these uncertain times you can take control of your financial future and get the right coverage for you and your family. For more tips and advice on purchasing life insurance visit SBLI USA Mutual Life Insurance Company, Inc. phone (866) 331-3078 or go to www.sbliusa.com.
Courtesy of ARAcontent
source: pr
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