We all know we need insurance. But what's the best way to purchase it? How do you know what's right for you? Here are some great tips to keep in mind when you purchase insurance.
What do you need?
No one understands your financial situation better than you. Financial Highway
recommends that you can get a rough estimate of your insurance needs. To do this, add together your debt, estimated funeral costs, and six months to a year of income replacement.
Understand term insurance versus permanent insurance.
Understanding the difference between term and permanent life insurance (such as whole life) can help you make an informed decision about your insurance needs. Today, a term insurance policy should be able to cover most of your debt and financial needs. In turn, you may not need to purchase a whole life policy. Remember, buy what you need and make adjustments as changes become necessary. Term insurance is typically renewable and should have a convertibility clause which allows you to make changes in the future. There are certain situations where a whole life policy maybe more advantageous than term. Make sure you discuss the differences in detail with your insurance adviser.
Speak with an independent broker.
These brokers will have access to many more products than just one firm can provide. For example, Elzey Insurance
is an independent insurance company. Because of this, we are able to give you quotes from more than one insurance company which helps insure you get the lowest rate!
Insurance is for protection.
Term insurance provides protection only, without a savings component. Whole life and universal life policies have a savings component and are much more expensive. You are almost always better off just paying for term insurance, and using the cost savings to invest elsewhere.
Do your homework.
Make sure you do your homework before purchasing an insurance product. Make sure it fits your needs and budget, and make sure you understand the contract.
At Elzey Insurance, we have over 20 years of experience! Why not give us a call today. We would love to help you determine what type of life insurance policy is best for you and your family!
Insure with us today, Be sure of tomorrow!