Choosing the right life insurance policy can test your patience. Everyone wants a life insurance policy that meets their needs without breaking their budget. However, there are an overwhelming amount of policies out there, and it can be difficult to pinpoint one that exactly suits your needs.
How to compare different policies and determine the right fit for you.
Term Life vs. Whole Life?
One of the first things that you need to do is figure out if you want a term life or a whole life insurance policy. A term life insurance policy ends after a certain period of time while a whole life policy will continue for your whole life. In a term life plan, you pay a monthly premium with the understanding that, should you die, your insurer will pay a set amount to your beneficiaries. This plan is a good fit for most people. A whole life plan is a bit more complicated, and requires far more research. These types of policies are only suited for those with complicated financial plans.
How Much Coverage Do I Need?
As term life insurance is meant to provide emergency coverage for your family, most people get enough coverage to pay off all major debts. This normally includes coverage for your mortgage, student loans, credit card debt, and so on. You might also want to consider coverage for your children’s college, spousal retirement, and lost income.
How Long Should My Term Be?
Your policy should last as long as your longest financial commitment. For instance, this could mean that your term should be as long as the time it will take to pay off your mortgage.
How Do I Compare Quotes?
Make sure that you shop around for the best quote; don’t simply settle for the first offer. Compare rates between insurance companies to ensure that you are finding the best price for the coverage you need.
When it’s time for you to start thinking about life insurance, keep this information in mind. For more help choosing the right life insurance policy for you, contact the professionals at John Scott Insurance.