Getting life insurance can be a smart idea to cover the worst of eventualities. However, there can be a big difference in the price of similar policies, so it’s important to pick carefully and to ensure that you find something that’s right for you and your circumstances. Here are three tips to help you find the perfect policy.
1. Think About What You Really Need
Naturally, you’ll want to shop around for the best premiums, while keeping a close eye on what’s actually covered. You should also think about exactly what you want from the policy, though – whether term-life (covering a limited period of time), whole-life (generally lasting until your death), or universal life insurance (which offers more flexibility with how funds are used). Where you are in life will also have an impact on how long you need the policy to last – for example, you might want the insurance to last until you have cleared your mortgage or your children have moved out, at which point you will have fewer financial burdens to worry about. Do remember though, that many whole-life policies have a maturation date – so will become invalid if you live past a certain age.
2. Insure For The Right Amount
The amount that you insure for will make a huge difference to how much the policy costs on a monthly basis – so consider how much your family would need in order to cope in the event of your death. You can also get a mortgage life policy, which is specifically intended to safeguard your mortgage. More broadly, make sure that you have named beneficiaries along with contact details for them, and make sure that all the details on your policy are correct – otherwise, it might turn out to be worthless.
3. Plan Ahead
Consider your health – quitting smoking or making an effort to drink less will make a significant difference to your premiums. Furthermore, if you’re able to secure a policy while you’re young then you may be able to get far more advantageous terms than you would in middle age or later in life.