There are several types of life insurance to choose from. Life insurance is a very important coverage to have for you and your family. This particular blog will discuss Term Life insurance and more specifically some things to think of and avoid when you are purchasing this coverage. Also remember that you can call WTM and talk to someone at any time about life insurance if you have any question.
Here are some things to avoid when looking at and for your Term Life Insurance Policy.
- Not the right limit to income ratio-When you are looking at the limit you need to think big… Ten to twelve times your income especially on the primary source of income to the family. this coveraged needs to take care spouse kids, and household for a long time if something happens to you. They need plenty of coverage to allow time and life style maintenance until they can figure hot the next step. But don’t forget to get coverage for both souses even if one is a stay at home parent.
- You ain’t getting any younger- The longer you wait , you leave your family vulnerable to if something happens to you. Also, insurance premiums for the same coverage go up as you age. So buying sooner rather than later is a money saver. Even if you are young unmarried and no kids…it is not too soon to think about life insurance. In fact, that is when you can lock in a cheap rate for 30 years and make sure everything is taken care of for the future.
- Not enough time on your policy- Make sure you select a length of time that gets your kids moved out. What if you try and save a few bucks, get a 10 year policy, develop some medical issues that increase your premium later. it would be worth to pay a little extra premium than face a large increase later, Not to mention the amount it will naturally go up with age. That scenario would cost you even more in the long run.
- Health Concerns- Tobacco use will on average double the cost of your policy. The rate will be better if you do not. However, if you do then it will be even more important that you comparison shop as some companies rate it differently than others.
- Policy Cancellation before you obtain a new one-Term Life insurance rates have come down making it worthwhile in some cases to switch. Just make sure that you do not cancel your existing one before the new one is in force.
- Not reviewing your Life policy occasionally- It is always a good idea to review this coverage and make sure you have exactly what you need for your current situation. What was good 10 years ago might not work for you now. Maybe you had a baby, bought a house, quit smoking, got a raise at work or other health improvements. These life changing events could lower your rates or require more coverage. Talk to your agent about this.
Photo Credit: www.SeniorLiving.Org,Ken Teegardin