Things To Look For In a Life Insurance Policy
Life insurance is paid out to the beneficiaries upon the insured’s death and is also known as a death benefit. There are different types of life insurance so that is why it’s important to consider your lifestyle choices when picking a policy.
Term life insurance is used when you want life insurance for a specific amount of time. Once you decide the amount of time you’d like to be covered, you will have to pay a premium payment which usually increases once that term is over. The good thing about term life insurance is that it’s less costly than permanent life insurance. It can be used to replace potential income or help with paying for college but is paid in a lump sum, not monthly payments.
Another type of insurance is universal life insurance which provides lifetime coverage and is flexible when it comes to your premium. It allows you to increase or decrease your premium payments over the lifetime. If you’re looking to keep your funds safe to be transferred to beneficiaries or build cash value while guaranteeing coverage, this may be an option for you.
Whole life insurance is most likely the life insurance policy most people think of when it comes to this topic. It is a permanent life insurance policy that covers your whole life. Because the amount of time that is being covered with this type of policy the payments are usually fixed and has a savings component which accumulates tax over time.
Policy Benefits
There are different types of policies available and no matter which type you choose, there are certain aspects that are important no matter the type of policy you end up choosing.
Cost: The first thing that you would want to consider is the cost. Choosing a life insurance policy that you can afford and that works with your budget is very important. Being that these policies are the most beneficial the longer you have them, settling on one that is comfortable for you means you will have more success with keeping up with it.
Access: The next thing you want from your policy is access. You don’t want to wait for years to get the money that is due to your family so make sure to review the details of the policy when it comes to payout.
Leniency: Choose a policy that works with your lifestyle. You want to work with a company that doesn’t treat you unfairly if you happen to travel a lot or play sports regularly.
Conversion: As mentioned before there are different types of policies, but when it comes to term life insurance, you may want to convert your policy to a permanent one when shopping for a new policy.
Living Benefits: Some companies offer benefits with their policies that can be accessed while you’re still alive. You may even have the option to get cash out of your policy early.
Contact Us Today
Reviewing and price shopping for life insurance policies is always a good idea before spending any money. We can help you with an estimate or just answer some questions for you if you’re just getting started. Feel free to reach out to us at Willoughby Insurance in Buffalo, NY today!