subject: Your Money, Your Life Insurance [print this page] Its your money, so why shouldnt you have the right to spend it exactly how you want? Look below for the profile that describes you best to find out what kind of life insurance youll need and how to go about purchasing it.
Extra Cautious
If you like looking before leaping, youll need to brace yourself for plenty of research before buying a policy. This will mean dedicated hours spent in nightly/lunch hour research to read up basic facts about life insurance, from types and prices to rating classes and hiccups you may face while applying. Look up article bases that are well informed and detail experts opinions. No matter what some may say, life insurance is a very personal decision and will differ greatly on a case-by-case basis.
Absolutely No Room in My Budget
We understand in our flailing economy that it gets harder to keep food on the table, especially if you are the sole breadwinner in a large family or have large outstanding debts. Unfortunately, life insurance is hedging against a very unfair bet, a bet that you wont die anytime soon. Death is as inevitable as it is highly improbable, and theres no way of telling when it will come in handy. If you have no dependents, no debts that will need to be cleared even after death and a savings cache in place for funeral costs, its possible to not need any life insurance cover at all. But if you had even one of these factors working against you, life insurance can be a life saver, especially for dependents who will have to carry onward without you. Choose a simple, low-cost term life insurance policy from a reasonably stable company and shop for good deals online.
Bargain Hunter
If youre looking for a cheap policy type, choose term life and compare term life insurance quotes before buying. Even if you chose to go with whole life insurance and are looking for a bargain, make sure to get as many quotes as you can. Youll be surprised how widely life insurance rate can vary from carrier to carrier. It will help to know what condition your health is in before starting to bargain, because people with pre-existing conditions or unhealthy habits and body types are usually in no position to bargain; they should consider themselves lucky to find any life insurance cover in the first place, especially if their underwriting rate class is significantly low. Look for free or cheap riders that can be added to your policy to prepare for contingencies.
Clever Spender
Youll need a combination of bargain-hunting techniques and research in order to find the best policy. Sometimes, it may be possible to start out with a smaller policy at higher rates, especially if your health is not in the best condition, and then buy a larger policy for an extension of term life coverage. A clever spender will also know the status of his financial goals in order to choose wisely between permanent or term life insurance. For some people that need permanent protection, permanent policies are essential, safer investments and can end up saving you money as you grow older. However, many people prefer buying term life and investing the difference in money market funds.
Do-It-Myself
Hands-on, DIY even with your finances? No problem! You can choose to buy a policy directly from a company after researching prices and quotes yourself. However, you should know that getting quotes on life insurance is not as easy to do yourself as using a DIY store to make your own lawn chair. This is why many advocate finding the right agent/brokerage agency to do your shopping for you. Choose wise, sympathetic agents who will understand what you need and not push their agendas (and fat commissions) on to you. You will need to seriously invest the difference between term life and permanent life into a fund that will allow you a sizable nest egg for retirement savings.
Safe than Sorry
If youre the kind of spender that wants the best coverage even if it means spending a little more on premiums, choose highly stable and reputed life insurance companies that top the list on rating agencies AM Best or S&P. You may find the need for permanent life insurance protection to ensure the comfort of your family long past your earning stage. Riders can come in handy when tailoring a life insurance policy to custom fit your profile, and can provide remarkable benefits ranging from Waiver of Premium upon long term disabilities, Accelerated Death Benefit for serious illnesses that can help pay for medical costs and Return of Premium for term life policies that will return all paid premiums at the end of the term.
You Cant Put a Price Tag on Life
You know what you need and dont care about what it would take to get it. You may find that using the services of a fee-only certified financial planner to help you find the best policy. Since you can afford costly life insurance premiums, choose wisely and buy from the highest rated companies. You may even want to use your policy as a tax-shelter for inheritance purposes; this is best discussed with your lawyer. A costly policy doesnt always mean permanent life insurance, so remember to do your research and find the best type that will suit you.
You see, not everything comes in a one-size-fits-all package. For a full understanding of how to buy life insurance protection, do a life insurance needs analysis online and coalesce this with your family/individual financial goals.
by: Pat Cassidy
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