Archive for May 2nd, 2012

Whole Life, Term Life Or Universal Life Policy


Let your family and loved ones know what type of life insurance you have decided to purchase. It is important to give the beneficiary necessary information. This would include the amount of the payout, where you keep the policy, and the information necessary for the correct financial representative to be contacted. Ensuring this information is provided makes it easier on those you leave behind to file a claim when it becomes necessary.

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 they say they know more than the ratings agencies, that is a red flag. If they say ratings are not important, that is another red flag. If they say they cannot find a rating on a company, they are probably lying. You can file a complaint with the company if you feel the agent is being dishonest.

When it’s time to look for a new insurance agent, you should choose carefully. You may opt to go with an independent agent so that you have the ability to choose from a range of offers from various companies, rather than go with a large, nationwide agency that can only offer you its own limited range of products. A truly independent agent is one that understands all the insurance company options and is working for your interests. They can steer you to a policy, customized for your particular needs, in an unbiased way and be forthright about their interests.

Go to a financial adviser, instead of a broker, to purchase life insurance. Be aware that most brokers are earning a commission off the insurance policies they sell, so they may push a policy on you that isn’t the best choice for you. The difference is that financial advisers get paid one price. Therefore, financial advisers do not have the same types of sales incentives brokers do, and have less motivation to steer your decision in one direction or another.

If you are the bread winner in your household, investing in life insurance is a smart idea. If you die, a good life insurance plan will provide for your spouse and children.

Perhaps one of the most vital tips for anyone looking into buying life insurance is that you should only purchase as much coverage as you truly need. You should investigate life insurance that will cover your family’s needs, and avoid excessive, unnecessary coverage.

Don’t be afraid to ask many questions to learn whether your broker has a good grasp of the fundamentals and can guide you with confidence. Do not forget to ask the broker if there are penalties for cancellations, if there is an option to renew, or any other questions that you have about premiums. Inform yourself with everything you should know so that you know you’re getting the best policy.

It is worth getting life insurance, no matter whether you need it soon or not. By utilizing the advice in this article, you will be able to protect your family from financial burdens and heartache.