05 Apr 4 Questions to Ask Yourself About Life Insurance
Questions to ask yourself before buying a life insurance policy.
Buying life insurance for the first time is overwhelming for many people. You may just know that a life insurance policy is imperative for the financial security of your dependents. But before you take out a policy from the first insurer you see online, be sure that you ask yourself these questions first. The answers will help you understand what coverage you need and are looking for.
What type of policy do I need?
There are two kinds of life insurance policies: term and whole. The term life insurance policies serve you for a stated period of time, such as 10 or 30 years. If the policyholder does not pass during the term period, no cash will be paid out to the dependents. Whole life insurance serves you until the day you die. It can be more expenses as the coverage lasts for several years or decades but they can be borrowed against a high-interest rate.
What do I want my life insurance to do?
Who are you expecting to protect? Your spouse, kids, business partner? If there are people that depend on you financially, your death could cause a financial hardship for them. Are you looking for valuable planning tools such as estate planning, retirement planning, and charitable giving?
How much cover do I need to achieve this?
Getting more coverage can provide more security and drive up premiums at the same time. On the other hand, there’s no point insuring yourself for a lesser amount that your loved ones would need. By deciding exactly who your life insurance is designed to help, you can make an informed decision on how much you need.
How much premium can I afford?
Life insurance should fit comfortably into your budget. It’s wise to first determine how much you are able and willing to pay for life insurance before looking at policies. There are some cases where people buy a more expensive permanent policy because they like the idea of having lifetime coverage only to find that they can’t keep up with premiums and so the policy lapses, leaving them without any coverage.
At Dougherty Insurance Agency, you’re a person, not a policy number. We understand the importance of personalizing life insurance to suit your needs, family, and future, all at the right price. Contact us today for service in Illinois, Wisconsin, and Indiana.