Life insurance may not be what you want to think about over a nice cup of coffee, but it is an important tool in planning your financial future and to protect your family from financial ruin should you pass away unexpectedly. Read on to find tips for getting the most from your insurance.
Term life insurance is the most effective for a single parent. Whole life completely disregards the reason you are looking for insurance and that is to take care of your children in case of tragedy. Term life is much more affordable than whole life and it provides all of the protection you need to care for your family.
When you are looking at life insurance policies, be sure to include coverage that is for both fixed expenses as well as ongoing expenses. Life insurance is also use to pay one-time expenses like estate taxes or funeral costs, which are often times be quite high.
If you are a member of a profession or pursue hobbies with a higher risk of death, your life insurance premiums will increase. Think about giving up hobbies like bungee jumping and skydiving because it may reduce your rates. If you regularly travel to dangerous or troubled destinations, you may nullify your coverage or forgo discounts.
If you have a high risk job or hobby, be up front about it. Yes, disclosing the information will raise your rates, but it will also protect you from losing your coverage if the life insurance company discovers it by itself. In addition, not disclosing this information might be considered to be fraud, which carries large penalties.
Before purchasing life insurance, you should fully grasp the difference between term insurance and permanent insurance because this can help you make a better decision about what kind of policy you need. A term insurance policy should cover most of your debt and financial needs, so therefore, a term insurance policy may be best for you. Do not let a representative tell you that you should purchase permanent insurance because a term insurance policy is only better in certain situations.
You need to find out what exclusions or limitations are included in your life insurance policy. There are certain things that a life insurance policy will not cover. If you do not want to leave your family in debt, you need to take the time to find out what is and what is not covered under your life insurance policy.
Prior to buying life insurance coverage, it is important to do some comparison shopping. While many policies include an option to renew, others are valid for only a limited amount of time. Two policies can offer the exact same benefits, but the one might be cheaper. Finding the best possible option will require you to spend some time researching companies and policies.
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, there are many things to consider when you are shopping for life insurance. Don’t just jump in and purchase from the first company you pick out of the phone book. Learn more about this subject and you can make an educated decision for the good of your family.
