Life Insurance

Let's face it! A great deal of us fear the conversation about life insurance. Let me rid you of one fallacy about many about life insurance. There is not a "one size", fit all method and there is not the "best" policy you can get for you and your love ones. There are too many factors to consider and far too many policies to review, and even with a true study and knowledge check on a particular product, something comes along and changes the game that gives you the impression that you made a mistake.

Hopefully after reading this, you can point your way to a more informative decision and sleep better at night. Let's get into when you should purchase a policy. Never, please never purchase a policy out of the fear of someone else's loss. This is very much like going grocery shopping on an empty stomach. You want to make firm decisions on your family needs. There are many calculators and methods to cover in this read, but use a sound one based on your family needs if something was to happen to the bread winner, or even someone who is helping out on monthly bills. For Example, I take the average amount of money that it will cost to run my household for a year and times that by the amount of years left until my youngest turns 25 (post high school years). My kids are 12 (triplets), so we are looking at 13 years. Now I may shop around for a term policy at 1.3 MM for 30 years and return of premium if possible. Keep in mind of what you could spend and if the return of premium option is available, take it if you can afford it. Talk to an agent about your options. I'm not a fan of investing the difference, when the markets are not as sound. Most return of premium policies have a strict payment requirement. One missed payment could eliminate this option. Be sure to cover all details with your agent before making a purchase and signing up into one of these policies. The end goal is to have all those premiums returned to you if you didn't have to use the policy. Again, the key is affordability! I truly believe the return of premium is one to the best features out there when it comes to term insurance. Also, try to purchase any policy at the earliest age possible. The key is to get your coverage locked in before you are diagnosed with something that may eliminate you years down the line when there is a greater need for life insurance. Another key time to purchase life insurance is when it is offered at a group rate. Getting hired on a new job, great! That is the perfect time to get coverage for pennies on the dollar. However, that coverage only stays with the employment, but it is something to have and most are offered by company benefits and you will never have to worry about payments if set up correctly be the employer. Knowing the time is key, but knowing what type is very important as well.

Now what type of policy if right for you is based on your income and needs. Some say it is best to have a combination of term and whole life. Well, that depends on your family make up, or if you are all alone. No matter the case, it is always a good ideal to have some kind of coverage for what may be ahead in your future. Marriage, kids, or even a business venture with a partner, a life policy is handy in all situations. I will not go into deep detail about policies that can support business partnerships, but they are out there. There are a great deal of products out there to help you accomplishments your needs. Sitting down with an agent is the best approach in helping the most. If you think there is no need for an agent, there are products that are out there for you as well.

Simple issue policies are the new way to do things if you want simple coverage and fear the hassle of an agent trying to over sell you. Keep in mind that if this route is taken, truth in medical history is very important. There are ways of tracking a person's medical history from every drug they were prescribed to every operation that has occurred in their life. So those who survived cancer or any other medical event should be truthful when filling out any online applications for coverage because that history will come up.

What ever approach that is taken when it comes to life insurance, use caution and consider all options when purchasing a policy. Most policies have free look periods, which allows you to back out after purchasing. Depending on the carrier, the free look period can go from 10 to 30 days. Please ask your agent about this feature. If that feature is not available, then don't purchase the policy. Next article, I will cover the types of policies that should be taken into consideration that can fit life situations, but as I said before; one size doesn't fit all.