Life insurance policies can be confusing. There seem to be endless different options, plans, and policies to choose from. You might have simply selected the cheapest life insurance policy because you didn’t fully understand your options. Maybe you selected a pricier policy because “You pay for what you get!” If these describe you, you might not be getting the most out of your life insurance policy. Here are some questions to ask yourself when considering your current life insurance policy.
Do I need term or permanent life insurance?
Although this seems like a tricky question, it can really be boiled down to a few simple assessments. What is your budget? What are your family’s needs? If you’re young and single with no kids, you could save money by choosing a short term life insurance policy. On the other hand, permanent life insurance offers an added amount of safety and security. Higher incomes, larger families, and greater expenses require deeply rooted insurance plans. With permanent life insurance, you can rest assured that you won’t need to worry about renewing, re-assessing, or dealing with insurance agents.
How much coverage do I realistically need?
In order to accurately assess how much financial protection your family needs from your life insurance policy, you must know how much money would be required for your family to continue on after your death. This means estimating your current expenses, understanding funeral costs, and accounting for your income. Make certain that your life insurance policy meets or exceeds this assessment. Knowing that your family is covered if something were to happen to you will bring you and your loved ones peace.
Can I make an annual payment rather than monthly?
Finally, you could save yourself money by paying for your life insurance annually rather than monthly. Most insurance agencies are charging you a small fee for making monthly payments. If you can’t afford to pay an annual fee, you may still be able to pay larger fractured payments every few months instead. If your provider allows, make as few payments as possible throughout the year; ideally, one annual payment. This way, you will ultimately pay less money in total.