Top 5 Things to Look for in a Life Insurance Policy

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If you are an adult with a family but do not have a life insurance policy, finding one should be moved to the top of your list of priorities. The right life insurance policy will provide you with the peace of mind that comes from knowing your family will be taken care of if you die unexpectedly. There are a few things you should keep in mind when searching for the right life insurance policy.

Cost of Premiums

There can be a huge disparity in the monthly cost of a life insurance policy. This is especially true when you are comparing the difference in cost between term life and whole life insurance policies.

There is no doubt you will want your family to benefit as much as possible from the policy you purchase. However, it is important to find a balance between the cost of your monthly premiums and the amount of coverage you desire. Keep in mind that if a time comes when you are having trouble keeping up with monthly premiums and allow your policy to lapse, it can be expensive to reinstate the policy.

Payouts Are Immediate

You have probably seen advertisements for life insurance coverage that does not require a medical exam. These policies only require the person desiring coverage to fill out a questionnaire. Qualifying for these policies is a simple process but there is a fact about these policies that may pose a concern to policyholders. These ‘simplified issues’ life insurance policies often require as much as a two to three year waiting period before a policy can be redeemed for its full value. If you are a person who desires full coverage immediately for your family, simplified issues policies are not for you. Take the time to find a policy that pays the total value of the policy from the day the policy starts.

Conditions and Activities

Companies can differ greatly in how they handle risk factors like smoking, diabetes, and frequent travel. You will do yourself a disservice if you do not find the life insurance policy that best fits your particular situation. It may be a good idea for you to contact an independent agent who is familiar with the market and who can identify the policy that is best tailored for you and your family.

Payment Options

There are certain bills for which you probably prefer manual pay. However, you might want to pay your life insurance premium with automatic credit card debits or bank drafts. This is especially true for term life policies because the cost of premiums will not change over the life of the policy.

If you forget to pay your insurance premium one month, your policy can be canceled in as little as 30 days. The company may not be obligated to allow you to pay the premium or reinstate your policy after the grace period has passed.

Benefits for the Living

More insurance companies are responding to the desires of consumers who want to benefit from their life insurance policies while they are still living. One example is a policy that will allow you to draw from it if you need to be placed in a care facility or suffer from a chronic illness. There are other companies who will offer to return all or part of the premiums you have paid if you do not want coverage any longer after a 20 to 25 year period.

Final Thoughts

Everyone with a family will want their spouse and children to fair as well as possible in the event of their untimely demise. One way to look out for the future of your family is a life insurance policy. Choosing the right policy will take a little effort. However, the process will be a little easier now that you have a better idea of what to look for when shopping for policies.