Archive for May 9th, 2012

Tips To Avoid Pitfalls When Purchasing Life Insurance

Instead of purchasing a policy through a broker, use a financial adviser. If a broker convinces you to take out a life insurance policy, he or she will earn commission. Conversely, a financial adviser will receive a flat fee payment. This difference may save you money and get you better coverage, because the broker is not motivated to make a larger sale, and will be more objective.

Buy life insurance when you’re young. With age, your risks of getting sick increase. If you buy a life insurance early in your life, you will be able to secure low premiums instead of purchasing a pricey policy once you start encountering health issues.

Your total cost on the life insurance will go up if you routinely do things that are dangerous. If you can not afford the rates quoted you, consider giving up any dangerous hobbies such as skydiving or scuba diving. Another factor is travel to areas of the world that are considered risky, which can even affect your insurance eligibility.

Before you can choose the right life insurance policy, you have to know how much coverage you need. Only you know how much it is that you need. Don’t allow a fast-talking life insurance salesman convince you to buy a huge life insurance policy. So assess what is needed and do not get more then that.

Are you aware that life insurance is a great investment vehicle for funding your retirement? When you purchase a life insurance policy, select one that offers “return of premiums.” You will be responsible for making premium payments for a predetermined number of years. If the policy expires and you haven’t died, your premium are paid back to you. You can use those returned premiums to finance your retirement.

If the only person currently in your life is you, i.e. you have no children or spouse, life insurance may not be relevant at this time. The purpose of life insurance is to ensure the financial security of your dependents after your death. If there is no one who depends on you financially, and if you are not planning on having children in the near future, you can decide to forgo obtaining life insurance, and save the money instead.

It is very important to have life insurance, not only for yourself, but to take care of your family. In case of a tragedy, you will be glad you invested in a life insurance policy to cover expenses.

Make sure that you have a purpose in mind for your life insurance. It’s important to know why you should have it, and your reasons for buying it. Purchasing a policy earlier in life will save you money, which makes it all the more important to start thinking about these things while you are still young.

Death is something that happens to those who are planning for it as well as those who are not. Sometimes it happens much earlier than people expect. It’s possible that your family can lose all assets they own when you die if you haven’t properly planned. Consider the information offered in this article, and use it to make a good decision on life insurance and providing for loved ones.