04/15/2020
Ever wondered what to look for when shopping for life insurance?
If so, I came up with a quick list of for you. Check it out:
1: Affordability🏧
Scoring an affordable life policy is not only important now – it is important for the future, too. When times get tough, life insurance is often one of the first items people stop paying for.
If you buy a policy that’s affordable, you’ll be much more likely to hold onto it if you have to make any serious cuts to your budget.
The problem is, if you let your policy lapse, you might find it incredibly expensive to reinstate, or even impossible if your health has changed.
The bottom line: Plan on a premium you can afford to pay long-term.
2: Immediate Payout💰
If you see a commercial on TV offering you quick and easy coverage with no medical exam, it’s probably from a company that offers what’s called “simplified issue” insurance. Because there are few questions on the application and no exam, it’s true that you can easily qualify for these type of policies.
However, there’s often a two or three year waiting period after purchase before they’ll pay out 100% of the proceeds upon death. If you want life insurance coverage that starts right away, this is obviously imperfect.
Make sure your policy pays all of the face value from day one. Stay away from simplified issues policies.
3: Underwriting Leniency✍🏽
You could be making a huge financial mistake if you get a policy from a company that does not treat your particular health or personal activities fairly. Companies range widely on how they price out risks like diabetes, smoking, travel outside the Country, or family’s medical history.
4: Automatic Payments🔄
It's convenient. Simple
5: Conversion Option🔂
If you’re looking into term life insurance, beware of policies that don’t allow you to “convert” your term policy into a permanent one.
For example: If you have a 10-year term life insurance policy and decide after 9 years that you still need coverage but have developed some medical conditions since your initial term purchase, the conversion feature would allow you to keep your coverage, without it, you may not be able to qualify if you were to go back out to the market for a new policy.
Most term policies include a conversion feature, but not all, so be sure to find out.
6: Living Benefits👪
There are more ways than ever to use life insurance while you’re living.
For example, many policies give you the option to receive payments if you get a chronic illness or need to be placed in a care facility. Some will even let you withdraw for any big purchase like education expenses, down payments for a home, cars, etc.
If you want the option to get cash out of your life insurance policy if you need critical care, then looking for a company that offers this option is a smart move.
Make sure your policy pays all of the face value from day one. Stay away from simplified issues policies.
