Buying life insurance is a long-term commitment. You will be paying the same amount of money month after month and year after year. Take a look at some dos & don’ts to help simplify the process and give you points to consider when buying life insurance.
Don’ts:
Looking at Price, Not Value
While price is important, the features of a product are crucial in determining its worth. For example, when looking for life insurance, the cheapest option may not be the best one. By running a quick quote, you will find out that prices vary from company to company due to insurers offering different features.
Not Picking the Right Coverage Amount
When considering life insurance, it’s important to understand the basics of how coverage works. If you’re not sure how much coverage is right for you, you can consult a financial planner or call a life insurance company for more information.
Not Asking Questions
When applying for life insurance, sign every page of the application and any supplemental forms that your agent may provide only after checking the details. A good agent will make sure that you are comfortable with your policy before it goes into effect. Make sure to ask him/her if you have any concerns about the information on the application or in the policy.
Dos:
Be Honest
You need to set reasonable expectations from life insurance. It’s important to be fair and honest when asking for a quote. Depending on your health and lifestyle, some of the quoted rates on TV may not be what you could get.
Review the Insurance Company
When considering an insurance company, it is important to do some investigation into the company’s reputation. While you want to be sure that the company will be around in the future, you also want to know whether it has had any trouble paying claims in the past and whether there appear to be any financial problems involved.
Pick a Good Agent
It’s essential to find an agent who will spend some time researching the marketplace and product options and then work closely with you to find a company that suits your needs and fits within your budget.
