A Brief Guide to Life Insurance

These days, most people understand the importance of life insurance. Even if you’re unmarried and have zero dependents, you still need at least a basic policy to cover final expenses. Of course, most of us do get married and have children at some point, and at that point our life insurance needs increase dramatically. Those needs might change again as we approach retirement.

The bottom line is, we all need life insurance. So should you reply to one of those mass mailings you’re always receiving, and take advantage of what sounds like a great deal? Not so fast! Life insurance policies are as varied as each individual’s stage of life, income, assets, dependent responsibilities, final wishes, and many more factors.

There’s no way we can help you choose the right life insurance policy by simply writing a blog on it (that’s what personal consultations will help you determine). But these basic guidelines can get you started in the right direction.

Treat the process like a serious purchase. Would you purchase the first car you test drive, or the first home you tour? Probably not. Resist the urge to enroll in a life insurance policy simply because it’s a good deal. Thorough research pays off.

The premiums are only one factor. Obviously, you need a policy you can afford. But a life insurance policy should meet your coverage needs, too.

Ask yourself what you intend to accomplish with your policy. Life insurance can actually address many more needs than simply burial costs or income replacement. First determine your needs, and then match those needs with a policy that fulfills them.

Don’t wait too long. Premiums are partially determined by age and health status, so you don’t want to wait until a policy is no longer affordable.

Make sure to tell your beneficiaries. They can’t claim a payout that they don’t know exists! You might be surprised to learn that currently, 7 billion dollars in life insurance money has gone unclaimed.

Update beneficiaries designations when life changes. If a beneficiary dies, or you divorce, or some other circumstance changes, you need to update your beneficiary designation.

These steps can get you started, but in-person, experienced guidance is definitely the way to go. Give us a call, and we can help you get started with making this very important life decision.