{The following is a guest post about finding the best life insurance policy…}
Many people find purchasing a life insurance policy stressful, but as long as you do your research you will be comfortable with the decision you make. As you know, the absence of a life insurance policy can be even more stressful due to the fact that no one can predict when they will need it.
Finding The Best Life Insurance Policy
When calculating how much life insurance you need, make sure to include both your life and death expenses. Unexpected hospital bills and funeral bills can be very expensive, so you want your policy to supply your household with enough, not only to go on living comfortably without you, but also to pay for any expenses relating to your death.
When selecting a life insurance policy, it’s best to avoid purchasing expensive riders unless you really understand and need them. Your advisor may tell you that you should add certain kinds of riders, but most of the time, you don’t need them. Typically, riders do not give you any benefits except under certain situations.
Watch out for universal life policies. The cash value of these insurances can decline over time, and what your family will be paid out will not reflect at all what you invested in this insurance. You should get a whole life policy, which guarantees your premiums and how much the insurance is going to pay out.
Focus on your health to further reduce life insurance costs. Taking actions such as quitting smoking or losing weight can have a positive impact on premiums for life insurance, as it reduces your total risk to the insurance company. Most life insurance policies require some sort of health examination, so taking steps to improve your health before the exam can significantly affect the total premium you end up paying.
Choose permanent life insurance if you want to build cash value. Building cash value in a life insurance policy helps you have extra money for the future. The insured can borrow the cash value at a low interest rate. They can also use it to pay the premiums. The cash grows tax-free, and many financial planners recommend it as a way to cover estate taxes as an element of a thorough financial plan.
An insurance plan is not a buy-it and forget-it purchase. You will need to revise your insurance plan as things change in your life and you get older. Changes in marital status, having children, or reaching retirement age are all reasons to review your plan and make adjustments.
While the process of selecting a life insurance policy may seem stressful, it is sure to be a relief once the process is completed.
photo credit: Freedigitalphotos.net
