09/03/2023
In my opinion, everyone needs life insurance-- even if it just for funeral expenses. It's SO important. But make sure you are shopping correctly !
The shopping/buying process of life insurance can be overwhelming, but there are some common mistakes you can avoid. Read below to find out more👇🏾👇🏾👇🏾
1. SELECTING A SPECIFIC TYPE OF LIFE INSURANCE WITHOUT FULLY KNOWING THE DIFFERENCES BETWEEN ALL TYPES.
Whole life, universal life & term life have significant differences & it is important to know which type fits your situation. Some agents will attempt to just sell you a cash value policy because the price is higher, but if you know term is better for you, you can avoid situations like this.
2. NOT COMPARING RATES
It is so important to make sure you are getting the best price for the type of coverage you need. Make sure when comparing rates, you are also comparing the components of the different policies.
3. ONLY WORRYING ABOUT PRICE WHEN SHOPPING.
I know I said compare rates BUT rates should not be the ONLY thing you consider. If a price is lower, but the policy does not have everything you need, you need to consider that. Price is important because of course we have a budget BUT don't skimp on insurance or your family will pay for it later.
4. GUESSING HOW MUCH COVERAGE YOU NEED.
This one! Do not EVER guess how much coverage you need. Make sure your agent is ACTUALLY calculating the proper amount of coverage for you. This should include your debts, mortgage(s) & expenses, as well as 8-10x your income. Some professionals prefer up to 12x your income. Do whatever is comfortable for you.
While we know you cannot always afford the amount of coverage you need, start with lower coverage and work your way up to your need as your situation changes. Simple.
5. WAITING TOO LONG TO GET LIFE INSURANCE
In your 20s is the best time to get insurance. Why? You are in your prime health & will get favorable rates. As you get older, insurance premiums will begin to rise. Also, the risk of health problems rise as you become older, which can make the process of buying insurance a little more difficult (Certain coverage amounts do trigger health exams). All in all, get insurance as young as possible!
No this doesn't mean you shouldn't try to get insurance when you are older. ALWAYS TRY.
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Buying insurance can seem like a lot, but you just have to do the work for your family. Nothing is worse than grieving and worrying about finances & funeral arrangements. Handle this ASAP!
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