You know that a life insurance policy can protect your family’s financial future. But like all financial products, a life insurance policy is only as good as the choices you make with it. In order to reap the most benefits from your policy, you need to choose one that suits your needs and decide upon the right amount of protection.
Since shopping for a life insurance policy can be overwhelming, we suggest you follow these three steps to begin narrowing your options.
Perform a needs analysis. Follow this step even if you already have a good understanding of your needs, because it can uncover some surprising details. Meet with us to perform a this analysis, and you will gain a better understanding of your family’s needs.
Compare different policies. After you perform your needs analysis, you will probably decide upon a type of life insurance policy. You will also know how much coverage you need to purchase. However, premiums for the same type of policy, in the exact same amount, can vary significantly from one insurance provider to the next.
The price of a life insurance policy is based upon your risk – and the likelihood that the insurance company will have to pay out your benefits. But since different providers calculate this risk in different ways, you might find that premiums differ significantly. You want to find the policy you need at a price that you can afford. In some cases, you might find that you can purchase more coverage than you thought you needed.
Continue to evaluate your needs. Many people make the mistake of purchasing a life insurance policy, and then forgetting about the issue. But since your family’s needs will change over the years, so should your life insurance policy. About every two years, or after major life changes, you should perform another needs analysis. Sometimes it might be necessary to update your policy in order to reflect your new priorities.
Continuing to assess your needs is the best way to ensure that your family remains protected. For more information on life insurance policies, call our office to schedule a personalized consultation.