Death is an uncomfortable subject to wrap one’s head around. However, providing financial protection for your family after you’re gone is one of the most important things to do.It’s crucial that you choose a proper life insurance policy that does exactly that.
If you’ve put off the subject of life insurance so far, here are some expert tips for a first-time buyer.
Understand Basic Life Insurance Policies
The first thing you need to do is to understand the two basic kinds of life insurance policies there are: term life insurance and permanent life insurance.
Term Life Insurance–Term life insurance policies involve plans that provide protection for a predetermined amount of time; usually 20 or 30 years. If you happen to die during that time period, your family will receive the benefits of the policy. On the other hand, if you outlive the set term, your policy will expire, and you will have to decide whether to replace the policy or simply go without it.
Permanent Life Insurance –Permanent life insurance policies are set to last for the entirety of your life. After you die, your family will receive the death benefits. Permanent life insurance policies typically involve higher premiums than term life policies.
List Your Insurance Goals
It’s important to understand that life insurance is designed with the future in mind. Considering this, you need to outline what your life will look like in the next 20 to 30 years.How old your children will be, if your mortgage will be paid off or not. Do you want to settle for lower term life insurance premiums so you can invest in a 401(k), or do you want benefit from the cash value accumulation that permanent life insurance offers?
Determine the Kind of Coverage You Need
You’ll need to grab a calculator for this and estimate the amount of money your family will need in a projected time frame. Online insurance calculators are helpful for this. Include the projected status of college funds, mortgage payments, and other long-term expenses. Consider possible changes in your income over time.
Pick a Reputable Insurance Company
The last thing you need to do is pick an experienced and reliable insurer. Choose one that is long-standing and financially stable. To help you pick a reputable insurance company, consider a financial advisor. An advisory company can help you evaluate a range of different insurers and their policies. They will work with you to determine your needs based on your circumstances and tailor policies based on them.
As an industry-leading mortgage and financial advisor based in London, Sterling Capital Services has amassed an excellent reputation for providing clients with affordable life insurance policies tailored to their specific needs.
If you’re looking for solid life insurance or term life insurance services, get in touch with us to make an enquiry! Or call them at 0207 822 2390.