It may not be easy to think or talk about a loved one’s death. But what would happen if you or one of your family members is no longer around? What would the situation look like? What things will the family survivors face on top of the emotional grief? When each of us sits down to understand the potential impact that would cause, the importance of getting life insurance becomes crystal clear. Purchasing life insurance is a good idea to be sure that your loved ones will always be protected, even if you are not there to take care of them.
As the market gets more volatile, the more insurance coverage people and organizations seek to obtain.
- Know the Insurance Types
Understand that there are different types of Life Insurance, such as Term Life, Whole Life, or Universal Life, each is designed to fit different needs and lifestyles. The details of insurance policies and offers may be complicated and confusing, but the basic general structure is easy to understand. By understanding the general key purposes of each life insurance will be easier when talking to our agents regarding which type may be best for you. To read about general life insurance policy differences, please visit: Affluentopia Life Insurance Page. - Be Aware of Payment Discounts
Generally, the lower the risk of an individual, the lower the premium rate offered. Consult your agent to see if the Life Insurance company offers a discount for paying annually. Many times, they do. - Make Sure You Have Enough Coverage
Many life insurance policies give policyholders a choice of how much coverage they would like. There often are limits to how much one can obtain maximum coverage for. Income and assets are usually used as key factors to determine how much the insurance company is willing to offer coverage for. It is important to make sure your family is fully protected in case of your death. For details, please contact one of our agents to review your goals and needs. - Take Care of Yourself
Life insurance policies and premium offers are subject to medical underwriting; that means the healthier you are, the lower the risk you are, and therefore, the cheaper your rates will be. Get in shape, and quit smoking, you will not only live longer and healthier but also pay less for life insurance. - Honesty is the Best Practice
Due to past years of insurance fraud cases, many insurance companies and the Department of Insurance have implemented stricter underwriting reviews and background checks on individuals before issuing insurance policies. Do not lie, falsify, or exaggerate the information on the medical questions on a life insurance policy application. If you are caught, not only will your policy be canceled, you may be blacklisted from ever purchasing another policy again, even from any other insurance carrier. In addition, you may be subject to criminal prosecution for insurance fraud. - Buy Young
Most people who are young and healthy do not think of the need for life insurance, but that is usually the best time to be purchasing life insurance. The rates are lower the earlier you purchase your policy while there is protection for your loved ones in case something happens to you. Many parents purchase life insurance for their children at a young age. The costs are tremendously affordable. - Review Your Coverage
If you already have a life insurance policy, it is important that you periodically review your overages. Life circumstances change and so do life insurance needs. For example, there may be a new addition to your family, a change in the physical condition of a family member, etc. You may need to obtain increased insurance coverage to ensure expenses or payments are accounted for. - Don’t Rely on Your Job
While some employers offer Life Insurance to their employees as a job benefit, those policies are usually just for one year’s salary and are substantially inadequate to rely on for your only Life Insurance coverage needs. In addition, those insurance policies are tied to the job and will not be in effect if you leave that place of employment. - More is Less
Life Insurance premiums are usually calculated with “cost per thousand” in coverage. It gets progressively less as you increase coverage. In other words, if you pay $1,000 a year for a $500,000 term life insurance policy, the cost of your premium per year to double the policy to $1,000,000 is usually only a few dollars more. It does not double your premium. - Consult Our Agent When Needs Change
Most people forget to review the needs of their life insurance coverage as years go by. And unfortunately, when something happens to someone, it is too late to increase life insurance coverage for that individual. Also, when the cost of living rises, an increase in life insurance coverage is needed to ensure sufficient protection is adjusted.
The purpose of Affluentopia is to provide as much simple-to-understand knowledge to our clients, taking the complexity and confusion of insurance to safeguard you and your family’s needs. Preventative measures and actions are of utmost importance when the unexpected occurs. Our goal is to help you maintain your wealth while reducing your life’s stress if an adverse situation happens. Contact one of our agents and we will help you navigate to your current needs and goals.
