There are many reasons why you may want to get life insurance coverage. Perhaps you are starting a family and wish to enable your children and spouse to be supported in the event of your death. Maybe you’re getting a mortgage and want assurance that it will still be paid after you’re gone. Perhaps you just want to ensure that there is enough money available for your funeral without putting relatives out of pocket. Whatever your reason for purchasing insurance, there are a number of things you’ll need to think about before you settle on a policy.
What Coverage Do You Need?
What will be the financial deficit for your household, partner or dependents if you’re no longer around? Will there be any other means by which they will be supported after your death? Does your lifestyle involve frequent international trips? Your may need to take into account foreign travel when determining your coverage, to make sure your partner and dependents will receive what you have planned for them. By answering these questions, you’ll help insurance agents to determine the size of the policy required.
What Can You Afford?
You should also be honest about the amount you can afford to pay as a premium each month. Discuss your budget with a range of providers and only settle on a package if you’re sure that you can afford it. If your financial circumstances change and you are no longer able to afford the premiums, you might consider selling your policy instead of letting it lapse – as, if many years have passed since you first purchased the insurance, buying new coverage could be extremely expensive, since older people are more costly to insure. To sell your policy for cash, you’ll initially need to apply for an appraisal to see what the coverage is worth. You’ll then receive cash from the buyer, who will take over payment of the premiums and collect the resulting cash sum upon your death. While you won’t be buying coverage with the intention of selling it on, it is worth keeping this potential outcome in consideration when looking for the best coverage.
What Information Will You be Required to Give?
Whatever type of coverage you buy, you’ll need to be honest about your physical health as well as previous health conditions in your family, your doctor’s name and address and your height and weight. You should also inform the provider of your intended beneficiaries. Furthermore, you’ll be required to tell your insurance broker about any other policies you’re currently paying into. Some policies are tailored to particular circumstances – for example, some are created for people with pre-existing medical conditions or who work in the military. If you buy a policy of this kind, you may need to answer questions that are slightly different from the above, but the fundamentals will stay the same.
Who Will Your Beneficiaries Be?
You’ll need to think about who you’d like to benefit when it’s time to pay out. Who is likely to struggle financially or require monetary support following your death? If you do not name a specific beneficiary, the money will go to the main beneficiary of your will.
What is the Provider’s Track Record?
Finally, you should do your research on the specialists from who you’ll be buying from. Don’t simply look into the premiums they charge – you should also examine previous cases where they have paid out or refused to do so. Long-established, secure companies are best, as you don’t want to take any risks. Check out independent online reviews to learn about the experiences of previous customers.
