Life Insurance FAQs: Things You Must Know

 

Life insurance is seen as a major investment stance by most people today and saving up for your and family’s future is certainly the best thing you can do with your money. The insurance market is well-established and insurance companies offer a wide array of schemes and options to choose from. It is important for people to know every detail about their insurance policy and ways to choose insurance policies. People always have a few frequently asked questions (FAQs) about life insurance in San Antonio or elsewhere in the US and we will discuss those questions and provide brief answers to all of them. Read on.

When do you need Life Insurance?

A lot of people have this question on their mind, when to buy a life insurance. Different people have different financial backgrounds and different life circumstances. The decision to purchase a policy depends on a number of factors your medical condition, your financial status to afford the premiums, number of people depending on you, whether you are wage earner for the family or not. You need life insurance when you know you have to start saving up for your family’s future and cannot risk to leave them behind with weak financials and debts.

Which Policy to Buy?

Once you know when to buy life insurance, you must also be aware what kind of life insurance policy suits your situation best. Mainly, there are two types of life insurance, term insurance and cash value life insurance. Term insurance is designed to last a pre-defined amount of time and generally last 10-15 years. Term insurance has lower premiums and don’t add up to accumulate a lot of cash value. Apart from term insurance which is defined by the number of years, there is permanent insurance which is not defined by a term and reaps greater cash value and long term benefits. While choosing decide if you want greater cash value as the desired outcome or the flexibility of a tenure where you can decide to pull out or continue with the policy for an extended period.

How much Life Insurance Do I Need?

The next most obvious question people have on their minds is the amount of life insurance cover they need. While some people only insure themselves, few people insure the entire family by investing on a family plan. You have to consider the costs you will be incurring from the premiums you would have to pay for these policies and decide if it falls under your budget. You don’t want to be neither under insured nor over insured as both don’t serve your purposes. The term of the life insurance plan and the cash value it returns for the premiums you pay also must be taken into consideration.

Do I need an Insurance Agent to help me?

People are also often confused whether they need an insurance agent to help them choose a life insurance policy (http://www.wikihow.com/Choose-Life-Insurance). The benefits of having an agent by your side is that he/she will help you choose the best plans by curating a list of policy quotes that match your requirements and circumstances. Apart from helping you to choose a policy, the agent will help you choose the insurance provider and premium rates that come under your budget. When the time for claims come, you will be going through a lot of emotional turbulence and an agent can help you make the claims during those tough times. In addition, the agent will also update you about the changes in your policy, premium due dates etc. The bottom line is, an agent will reduce your work and if you are a busy person it is wise you have an agent to help you out.

What are the benefits I would be getting?

Lastly, one of the most common questions people keep asking about is the benefits they will be getting out of the policy. This is important to know because this will help you make strategic decisions about the long-term investment you are about to make. You have to analyze the cost-benefit of the investment, the amount of coverage your policy offers and the returns you are going to get at the end when your beneficiary claims it.

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