Life insurance policies vary dramatically. Because of the discrepancy between policies, it is confusing to choose the correct one for your circumstances. Today, we’ll review six things to look for in a life insurance policy. Keep in mind, our goal at Care Financial is to educate and assist with all your insurance needs now and long-term.
1: Affordability: Now and Later
Affordability is the very first item to consider in your choice of life insurance. You want to make sure you choose the correct life insurance policy for your situation and circumstances. Costs vary between the two main types of life insurance: Whole Life and Term Life. Remember, circumstances change over time. New conditions and dependents are just two examples of big new changes critical to your policy. Be sure to review what is affordable for your budget and weigh your options. We will help you discern these expenses and choose the best fit for you.
2: Autodraft Option
Along with affordability, be sure to choose a life insurance policy carrier that will automatically deduct your monthly or quarterly payments. Life insurance is not something you want to lapse on. Life happens and bill payments are forgotten at times. Ensure life insurance is not one of these by setting up an auto draft right away.
3: Payout to Dependents
You have chosen the right policy: ✔. You have determined your dependents: ✔. There is one more item to carefully review. This is the payout to those dependents. Did you know the choice exists to do a lump sum payout, i.e., an annuity payout? An annuity payout delivers payment to dependents over the course of a period of time instead of all at once like what happens with a lump payout. There are pros and cons to each type and reviewing those for your individual situation is a smart and recommended move.
4: Living Benefits
Traditionally, life insurance pays benefits upon the death of the insured. However, there is now the option of Living Benefits. Give us a call to review the details of your life insurance policy and further dive into what Living Benefits are to decide if this is an option your plan needs.
5: Flexibility in Underwriting
Not all agencies have the same underwriting flexibility. What this means for you is that you could end up paying much more than is necessary—or affordable—down the road. Be sure to go with an agency that can shop around for you to get the best policy value for your needs.
6: Immediate Payout
Life insurance policies vary in terms of the timing of the payout dependents receive. If an immediate payout is important to you for the livelihood of your family, be sure to choose a policy that pays out 100% right from Day 1.
One of the purposes of life insurance is to provide you and your family with peace of mind. We are here to help with that by assisting your choice for the best policies customized to your life and needs.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.