Types of Life Insurance: Finding the right policy

Deciding on the perfect life insurance policy can be an intimidating task. If you choose the wrong plan, your family might not have as much financial security in the event of your demise. Fortunately, this article contains enough tips to give you a good idea of what to look for when shopping for the right types of life insurance.

Northwestern National Life Insurance Company B...

Northwestern National Life Insurance Company Building, Minneapolis, Minnesota/ postcard (Photo credit: MCAD Library)

When shopping for life insurance, be sure to know the differences between the two main types of life insurance: term life and permanent. Term life is a chosen amount of years that your benefactors are eligible to receive your insurance money. If you outlive these years, then the plan is void. Permanent life insurance stays with you until you die, but rates will generally be higher.

It is important to have a sufficient life insurance policy. You should have enough insurance to cover at least five years of your current salary, if you are married. If you have children or many debts, you should have upwards of ten years salary’s worth of life insurance. Insurance will help your loved ones cover expenses when you are gone.

Purchase life insurance when you are young rather than when you are old. Putting off purchasing life insurance until later life to avoid paying premiums can end up costing you more. The earlier in life you purchase a life insurance policy, the lower your premiums will be and the less likely you are to be refused a policy.

Types of life insurance policies with high payouts are not always necessary. These policies can cause you to devote a significant portion of your income to premiums while you are still living. Rather, try to purchase just enough coverage to give your family the money they need in the event of your demise.

You now have a general idea of how to determine the best life insurance policy for the needs of you and your loved ones. Finding a great policy is easy when you know what to look for. After utilizing the tips from this article, you will surely find a satisfying life insurance plan and put your mind at ease.


 

Life Insurance 101 – Learn the basics about life insurance in a flash. Hear from a one of the nation’s top insurance advisors who will explain why life insurance is so important.