Purchasing life insurance is one of the most important things you can do in order to ensure the financial well-being of those you love if you were to pass away unexpectedly. However, when it comes to buying life insurance, there are a few things that you need to know before signing on the dotted line. Consider these things when purchasing a life insurance policy.
All life insurance policies can be categorized into one or two categories: term or whole life.
Life insurance has two main functions: to provide financial support to your survivors when you pass away and to be used as an investment vehicle to help you save for the future. Term coverage provides a cash benefit to your loved ones when you die and whole life policies build a cash value that you can use to pay for things other than your final expenses.
Whole life insurance policies are costly
Those policies that offer the ability to invest and build a cash value can be significantly more expensive than term life insurance policies. Unfortunately, many people believe that term life insurance policies are inferior and thus purchase whole life policies that don’t provide enough coverage.
Keep your financing and insurance stringently isolated
While whole life insurance policies offer an easy way to invest and build wealth, the truth is that there are other investments that will provide a greater return and don’t cost as much per month. It’s better to purchase an adequate term life policy and invest the rest of the cash in an IRA or 401k.
Buy sufficient term coverage to fill your needs
With term life insurance policies that offer large amounts of coverage for so little, there is no reason why you shouldn’t purchase as much insurance as it takes to ensure that your loved ones are properly taken care of when you die.
Match the term of the policy to your desires
With term life, the major thing you need to remember is that you will want your policy term to last as long as it takes for your children to leave the nest or for your retirement income to start, whichever happens first. This will ensure that you have coverage when you need it and won’t be paying the higher premiums at a more advanced age.
Buy when you’re healthy
Life insurance is cheaper when you are younger and healthy. So buy your policy as young as you can in order to lock in the best rates. But, don’t make the mistake of buying it before you have dependents to worry about since they are ultimately the beneficiaries.
Tell the truth
When you buy insurance, tell the insurer the truth. If you lie on your application, there is a good chance that you’ll be discovered when you make a claim and any misrepresentations can nullify the payment.
Use the Web to shop
When you buy life insurance, there is no reason not to use the Internet to get some quotes. However, when you get ready to sign on the dotted line, you need to contact life insurance companies Milmont Park PA.
If you are looking for the best life insurance companies Milmont Park PA has to offer, then you need to contact Mattus & DiGiacomo. Call them today and get a free quote.
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