Why Families Should Consider Life Insurance

Throughout our lives, many things will happen and change. We get married; have careers, kids and various other responsibilities over the years. We work hard to provide for our families. We want our loved ones protected and cared for in even the worst of situations. Life insurance is such a protection, which helps make our families future secure. There are many reasons to consider life insurance.

Which these reasons will increase as your family grows.

Topping the reasons for having life insurance is the financial protection life insurance offers. The proceeds from a life insurance policy can replace income lost to your family upon your death.

Families should keep the following in mind when choosing a Life Insurance policy:

• Determine the length of time you need the policy

  If you have young children, it may be best to buy a policy that will keep you covered until their graduation from college. For instance, if you have a 2-year-old you might want to buy a policy for at least 20 years.

• Decide how much coverage you will need

  The amount of life insurance you should buy depends on how much income your family will need. How much you own and owe, your age and number of dependants and various other factors. You can use a general rule of thumb and say 5-10 times your income.

• Do not buy the lowest price, but buy the best value

  Before buying the lowest price, consider the financial strength of the company and the product’s features including the length of the guarantee period, convertibility and available riders. It is a wise choice to spend a little more money to buy a policy with better features, more flexibility and from a company with superior financial strength.

• Convertible policies are best

  Convertibility allows you to exchange your term policy for a permanent plan without having to quality medically. This is an important consideration because of the risk that your health will decline increases as you age.

• Buy a Term Life policy with a guaranteed premium

  Do not assume all level-premium policies guarantee to be level for the entire policy period. For example, some companies offer a 20-year level premium with only a five-year guarantee. After the five years, that rate can change at the discretion of the insurance company.

• If you smoke, find a tobacco friendly company

  Whether you smoke two-packs-a-day or have an occasional cigar or chew, most insurance companies will offer you a rate as much as triple the price they offer non-tobacco users. It is possible to get deals. There are insurance companies that do not frown on “social tobacco user” as much. The key is finding the right company.

• Avoid the lure of “come-on” rates

  To qualify for the lowest premium, which may be referred to as super preferred plus or “Superman” rates. You must meet strict health as well as lifestyle guidelines. And many people just cannot. Be realistic about the rate classification that you could qualify for.

The goal is to find the best company, the best product and best price that are right for your specific health and lifestyle profile. Consult with us to determine a well-suited policy for you and your family.