When you’re purchasing life insurance, it’s best to know what you’re looking for and what your expectations should be. You need to understand exactly what is available for you and what you need in your future. Use this article as a starting point.
Prior to purchasing your life insurance, shop around and compare prices. The differences in price can be upwards of 50%, so therefore you should take advantage of online price quote websites in order to get the best estimates possible. You also want to take into account your medical history when shopping around for quotes.
Instead of purchasing a policy through a broker, use a financial adviser. A broker often earns a standard commission through the act of selling insurance, which creates a reason to lie or manipulate for profit. Financial advisers, however, are simply given a flat fee. For this reason, financial advisers are less likely to push you into certain products and have more reason to deal with you honestly.
Tell your agent if you have a risky job or participate in extreme hobbies. Yes, disclosing the information will raise your rates, but it will also protect you from losing your coverage if the life insurance company discovers it by itself. Keeping this information from them can be construed as fraud, and could cause huge penalties.
When you seek online information regarding life insurance, remember to safeguard your personal information. Scammers often hide under the cover of selling insurance, but really, they want your information for nefarious purposes. For just a simple quote, you should never need to give more than your home zip code.
Think about getting life insurance if you have dependents that financially rely on you. Life insurance helps to ensure that the mortgage on your home can be paid or that your children can attend college in the event of your death.
One way to keep down the cost of insurance is to avoid going through a middle man and paying a commission. These commissions just line your agent’s pockets and raise your premium. Look for a ‘no load’ policy if you can buy a policy directly.
Choose how you will go about getting a life insurance policy. You can buy your own policy or obtain one through your place of employment. Other options include consulting a fee-only financial advisor, obtaining a policy from a commission-based financial consultant, or buying it directly from an insurance agent.
Advice from financial advisers and brokers should be taken with a grain of salt, especially if the individual stands to benefit from your willingness to sign up. If an agent tries to downplay the importance of ratings, or claims to have inside information, run the other way, and then get on the phone to corporate and complain.
Unless you truly have no other option, stay away from “guaranteed issue” insurance policies. This type of policy is designed for people with health conditions that prevent them from attaining a normal life insurance policy. You can get this type of policy with no medical exam, but its premiums are much higher and the coverage you will get is fairly limited.
As you have seen in the above tips, there is a lot of knowledge you can acquire before choosing and purchasing a life insurance policy and it’s this knowledge that can help you with your future. Do everything you must to find out what policy is best for your needs.