If you are the primary earner for your family, you have to have a plan for their care should you pass away unexpectedly. Even if they don’t depend on you for income, the expenses of a funeral can quickly get out of control and you don’t want to burden loved ones with that. A life insurance policy is the best way to ensure there s money available to survivors when you die.
Life insurance is a vast business and there is a lot to know. Here are a few things to get you started in your search for the best life insurance policy for your particular needs.
Beware of policies that contain exclusions or special provisions. Perhaps these are best for your needs, but they are usually more beneficial to the insurance company. If you have doubts about the legitimacy of the provisions, you can consult an attorney. It’s usually best to buy a policy with the fewest exclusions possible.
Term life insurance is a popular option for many people. But it should only be purchased if you plan on keeping the policy for between 10 to 30 years. If you are young and are looking for a plan for a longer period of time, purchase whole life insurance. These policies earn a better return by investing some of the money into stocks and bonds.
Make sure you thoroughly investigate the company you are considering. You can find a company’s rating in Standard and Poor’s listing. State agencies are another option that can tell you if a company is legitimate.
Make sure you tailor the coverage to what you actually need. If you buy too little, it won’t suffice should you die. If you buy too much, then you’ll be paying for something you don’t need. A good rule of thumb is to select a police that pays about 5 times your annual salary.
Don’t forget to check with your employer for some possible offers. Many employers have group plans that can save you money. Even if it’s simply a referral, many companies will offer you a better rate through an employer.
Life insurance can give you peace of mind that your family will be taken care of when you are gone. Do a little research before you make a decision and find the best policy for you and your family.
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