Few subjects are easier to avoid – and more dangerous to ignore – than life insurance. We know we need this important financial protection. Yet, we don’t like to think about our mortality. Or we don’t want to wade through a sea of choices that can be intimidating. So, without getting into a debate about the merits of different types of life insurance, let’s look at what you may need to consider.
It’s important to choose a life insurance policy to fit your needs. Whether you are a parent or spouse, a business or home owner or have aging parents who rely on you financially, life insurance is essential. Even a single person with no dependents may not want to burden survivors with debts or the cost of final arrangements. Also, obtaining coverage at a younger age may help you avoid the possibility that a disease or illness could disqualify you from coverage or make premiums prohibitively expensive later in life.
When deciding the right amount of life insurance coverage, it’s important to consider your family’s unique financial goals and circumstances. Your licensed financial professional can help you determine how much coverage is right for you.
A primary reason for owning life insurance is to help provide financial protection for loved ones if you are no longer here to provide it yourself. That’s why naming and updating beneficiaries are important tasks when buying and holding a life insurance policy. If you have minor children, you likely will name a spouse as a primary beneficiary. If there is a change in your marital status, however, you may also want to change your beneficiary designation (as permitted by the divorce agreement). In fact, any major change in your life should make you review your life insurance, its coverage amount and beneficiaries.
Features and benefits of a life insurance policy are important. But if cost is your primary consideration when comparing policies, you should be aware of a few facts before make a decision. First, not all insurance policies are the same. Even when comparing similar life insurance products, such as permanent life, understand they may have different supplemental features, called riders, which can alter their costs. Your licensed financial professional can help you assess your needs to find a policy to fit your budget and your life.