Life-insurance: 4 Questions You Ahould Not be Afraid to Ask

Buying life insurance can be for many one huge decision, therefore asking the right questions at the right time is essential. In the old say, if you wanted to ask a major question that implies your financial situation, you probably had to leave your home, go to the library, or seek a trusted advisor. Fortunately, those days are long gone as today, most of us have the luxury to delve into a 1500-word article on our smartphones and find our most asked questions and their answers.

As you shop for life insurance, you’ll likely have a lot of questions not only about what you are buying but also on what can happen after your purchase.

Life insurance doesn’t have to be confusing, especially when the financial future of those you love are in play. Let’s delve together through some most asked questions so you can get a better approach on this topic:

1. How much life insurance do I need?

In order to sort out how much insurance you need, you will have to take a look at your current situation and ongoing expenses, future expenses, and even your funeral. But adding up all those numbers can typically amount to a bigger policy than you actually need. Moreover, you should subtract assets that could add up toward those expenses such as investments and savings.

2. Are multiple life policies possible?

Indeed, you can benefit from multiple policies from the same or even numerous insurance companies. For instance, you could purchase a permanent life insurance policy like a whole life type insurance and also a term life policy for a shorter need. These may include paying a mortgage or savings for your kids’ college if you were to die. When you apply for more insurance coverage than your current situation requires, top life insurance companies will likely ask you why.

3. Why buy life insurance when I’m young?

One of the many advantages of buying life insurance as a young person is that you’ll be able to lock in a steady rate for the extent of the policy. For instance, if you have dependents in the future, you have secured a low rate and ensured your own “insurability,” which means you don’t even have to worry about higher rates as you age and potentially experience deteriorating health.

Bear in mind that the older and less healthy you are when you purchase a life insurance policy, the higher the price.

4. What if I don’t die?

It goes without saying that before purchasing any kind of life insurance, you should think about what and why you are buying it. Do you need financial protection for your family in case of early death? Are you facing any additional debt which requires you to provide coverage?

In case you want a policy to cover your financial obligation, you may want to consider permanent life insurance. If you are currently experiencing a cash crunch and have an urgent responsibility towards your family, a business partner, or your lender, term insurance policy can offer you a short-term solution.

 

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