Life Insurance Tips
Choosing a life insurance policy can seem a little confusing but you should always keep one thing in mind: if you don’t need life insurance, then don’t spend your money on it.
Gauging your Need
Your life insurance will depend on your personal situation but generally, if you have no spouse or children, you probably don’t need life insurance. The same holds true if you don’t make a significant portion of the household income.
If you do have a family who you support by paying the mortgage, recurring bills, as well as sending the kids to college, you should probably seriously consider life insurance coverage so those financial obligations are met in the event of your death.
There is no simple rule-of-thumb you can apply to the type or amount of life insurance you need. Many experts believe that if you’re under 40 years-of-age and aren’t family-inclined or have a life-threatening illness, a term life insurance policy with a death benefit but no cash value, is the best way to go.
Term vs. Permanent
Term life insurance is a simple form of life insurance developed to offer temporary protection to those on a limited budget. Term life insurance can be purchased in large amounts and compared to permanent life insurance, has relatively low premiums. For this reason it is well-suited to meet short-term goals such as paying off a mortgage or to simply provide extra protection for your children. The most common terms are 5, 10, 15, 20, 25, 30, and sometimes 35 years
You can find further, more in-depth information on term life and permanent life insurance by clicking here.
First, you should either deal with the insurance broker or the life insurance company directly. They will be able to help you fill out any necessary forms and assist you with collecting the death benefit. You will also need to supply certified copies of the death certificate. One copy must be submitted for each life insurance policy claim.
Once you submit the claim, you should receive a settlement shortly thereafter. It may be in a single lump sum, which offers immediate need and the most flexibility, or in a series of installments. This will depend upon the policyholder’s decision or your preference.
You can find further, more in-depth information on filing health insurance claims by clicking here.
You will want think carefully before naming a beneficiary to your life insurance policy, it is one of the most important decisions you make when opening a life insurance policy.
You may wish to think about a second or contingent beneficiary in case the primary one dies before or at the same time as you. It is a common practice to name family members as your beneficiaries but it isn’t necessary.
The thing you should keep in mind is how the money is going to be handled after you die. For this reason, if you have any doubts, you should consider consulting with an estate planner, accountant, and/or attorney.
You can find further, more in-depth information on naming beneficiaries to your life insurance policy by clicking here.
So what are you waiting for? InsuranceUSA.com is here to help you find the term life insurance policy that best fits you and your personal situation while remaining affordable. Get started now and sleep well at night knowing your family and loved ones will be provided for no matter what happens!