Investing in life insurance provides an excellent opportunity for most people. It lets people gain a bit of confidence that their family can continue to meet their needs should something unexpected happen. Buying insurance can seem difficult, and it some cases, even cost-prohibitive. However, most insurers offer a wide range of policies to meet their customers’ needs. Before considering policies, you should learns some of the ins-and-outs of life insurance investments.
What Secrets Agents Don’t Want You to Know?
There are a few secrets that you may find interesting to know that insurance agents don’t readily share. These include:
You may not need coverage
Some people don’t actually need life insurance because they’re financially well off enough to not need the extra compensation. Others may not require policies, such as those who have no dependents or charities to plan for after their death. Some people have few to no debt obligations either, and those people may not need life insurance.
Buying a joint policy isn’t always best
Some insurers sell joint policies for married couples, and while they might seem slightly cheaper initially, they’re not necessarily a better value. Some may reduce the amount of compensation paid to each party. Others only have a single payout, limiting the financial protection they offer, especially if the widowed spouse still needs coverage. When pondering options, consider two separate policies to provide ample financial protection. This also allows individuals to set terms and payouts based on the earnings and debts of each spouse.
Reviewable premiums aren’t always best
Some life insurance policies offer reviewable premiums, while others offer guaranteed premiums. Guaranteed policies maintain the same standard premium throughout the entire course of the policy, but reviewable policies don’t offer this payment protection. Reviewable policies tend to offer low terms initially, but premiums can greatly increase over time, making them more expensive than other policies in the long-term. It’s often best to choose guaranteed premiums, especially when younger, to reduce cost increases later in life.
Not all agents offer the same thing
Individuals need to be wise about choosing the best life insurance, and insurance in general, for their needs. Some agents may be paid on commission, which means selling more coverage benefits the agent, but not necessarily the policyholder. Take the time to really learn about what life insurance can provide to you and your family, and then determine how much coverage you require for your specific needs. Also, don’t assume your first quote with an insurer is the best you can do. You can shop around until you find a provider you fully trust with premiums you can easily afford.
Most importantly, take the time to review your life insurance on an annual basis. While some policies may not change, that doesn’t mean your needs don’t change. The key to maintaining your peace of mind comes in making sure your policy always reflects your specific needs.