Ensure that you are purchasing the most suitable term life insurance policy for you and your family.
Buying term life insurance is extremely important when you have a family, but purchasing the correct coverage is the most critical part. The amount and type of coverage will vary depending on your financial situation, marital status, if you have children, and more. One of the best options is to speak to an independent insurance agent to receive an unbiased opinion about your needs and benefits. When you meet with your agent, it can be challenging to know what questions you should ask. Here are a few questions to consider when meeting with your life insurance agent and searching for the most suitable coverage for you and your family.
4 Questions to Ask Your Agent When Buying Term Life Insurance
Does the Plan Require a Health Exam?
When buying a term life insurance policy, most plans will require you to take a health exam. This is how they determine how much of a risk you are to the insurance company. They will take your weight, blood pressure, heart rate, and more. Because the life insurance companies do not want to offer people the life insurance payout, they will give their most affordable premiums to the healthiest policyholders. You will fill out an application with your health history, prescriptions, family’s medical history, driving record, and if you participate in any dangerous hobbies. In most cases, they will also ask and test if you use tobacco products.
Am I Too Young for Life Insurance?
In most cases, your insurance agent will tell you that you’re never too young for a life insurance policy. You never know when a tragic accident could happen, leaving you dead and your family with your debts and finances. Your payout can offer your family enough money to pay off the debts you had, any bills they need to pay, your funeral costs or they can use the money for your children’s education. Even if you are a young family in your 20s or 30s, you probably have student debts or a mortgage to pay off.
If you think that you can’t afford life insurance right now, this is the time to take out a policy. The younger you are, the more affordable your plan will be for you and your family. Along with your health, your age is another factor that determines the price of your premium. Therefore, it’s vital to purchase a plan as early as possible to lock in the low premium and protect your family as early as possible.
Do I Need Life Insurance if I Have a Plan Through Work?
Answering this question can be tricky and depends on your needs and the coverage your employer is offering. The group policies provided through work are typically affordable and easy to enrol into, but they won’t work for every employee. Group policies may not be equal to one or even two years of your salary, and most suggest that your coverage should be anywhere from 5 to 10 times the amount of your yearly salary. If you consider employer coverage, you must ensure that the policy has enough coverage for you and your family. In addition, this plan is tied to your employment with your job. If you were to move on to a new company, you probably wouldn’t be able to take your life insurance policy with you — meaning it can be more costly and complicated to receive a new plan.
What Type of Life Insurance Should I Buy?
We mentioned term life insurance, but another common life insurance policy can be more suitable for some people. A term life insurance policy is a plan that a person can purchase for a specific amount of time, usually anywhere from 5 to 40 years. Once the policy expires, you can renew the plan, turn the plan into whole life insurance, or purchase an entirely new policy. Term life insurance is the most affordable and straightforward type of insurance, and this is because there is no cash value aspect.
Whole life insurance offers you a cash value that builds up over time and can be used for retiring, investing, or saving. Along with the cash value, a whole life insurance policy sticks with the policyholder forever — as long as they continue to pay the premiums. Whole life insurance is usually more expensive because of the cash value but can benefit those with dependents they will take care of for the rest of their lives.
Nothing is more important than protecting your family, which can be done by buying a term life insurance policy. Term life insurance policies are usually the best route for young families because they are affordable, but Fabric can ensure you receive the most affordable plan for your needs. Fabric is a website and application that allows you to quote term life insurance plans in as little as ten minutes, write wills, and organize your family’s finances all in one place. The goal of Fabric is to make your life easier so that you can focus on what matters most, your family. So get started today to ensure that you and your family are protected, no matter what comes your way.