Buying Life Insurance Top Ten Tips
- Stop Procrastinating – Do it now, and stop putting it off. You never know when trouble can arise, and this is an important decision that will affect your family.
- Consider Quality – Life insurance is not something to scrimp on. Shop for quality when shopping life insurance. Find a company that has top ratings for financial strength, and that claims paying ability from the four major rating agencies (these four major rating agencies are Fitch, A.M. Best, Moody’s, and Standard & Poor’s)
- Understand the Products – Become knowledgeable on what you’re buying. Make sure you understand the products inside and out, and ask to see how random assumptions can impact your premiums, coverage, and cash values. Remember, they will always show you the “best case scenario”
- Tell the Truth – When filling out your life insurance forms, be 100% honest with your medical history. If you omit items, there is the chance the company will refuse coverage, deny your claim, or even cancel your policy.
- Choose a Rep You Like – when choosing a financial representative, choose someone you get a good feeling about, someone you trust, and someone you like working with. This person will be responsible for helping you identify your financial and personal goals, and helping to find solutions, and you should enjoy working with them.
- Read Small Print – Read your entire policy carefully, including all of the fine print. Ask your financial representative questions and make sure they explain anything and everything you don’t understand. Take advantage of the ten day trial period most life insurance policies offer, and if you feel uncomfortable with your choice, cancel in this time frame.
- Pay Annually – instead of paying premiums monthly, quarterly, or even semi-annually, opt for paying annually, if possible.
- Have Patience – while it is true that most companies provide conditional coverage when you’re willing to pay up front, you can expect to wait approximately three months to receive the actual policy. If you do not have it after three months, contact the company.
- Communicate with Beneficiaries – Talk to those people that will be impacted by your life insurance policy. Let them know of the type of insurance you have, the amount and location of any life insurance policies you have. Keep your policies in a safe place, and make sure to document the name and phone number of your financial representative.
- Make Annual Visits – Consult with your financial advisor annually. Review your life insurance coverage and make sure it meets your current needs.
Buying Life Insurance Top Ten Tips was last modified: April 9th, 2013 by
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