Life insurance is not always a pleasant topic — no one wants to think about what would happen if they were no longer there. However, failing to think about it can have disastrous consequences on your dependents should the unthinkable happen. A solid plan can help you make the best decisions for your insurance needs. Here are four things to consider when you are looking into insurance.
Arrive With a Plan
Image via Flickr by Yutaka Tsutano
Your life insurance buying strategy should begin before even talking to an agent. Instead, lay the groundwork for your meetup by researching different kinds of plans, different agencies, and different benefits. This isn’t to say that most insurance agents are dishonest; far from it. Rather, the goal is to make sure you fully understand what you need in a policy before you show up, so you can help the agent find the coverage that works best for you. That’s a positive outcome for everybody involved.
Read the Policy
It may sound like common sense to read over your policy thoroughly, but you might be surprised to find out how many people don’t do so. Part of the reluctance stems from the technical nature of the insurance policy; going over fine-print legalese is few people’s idea of a fun Friday night. With a major decision like your life insurance coverage, however, you’ll need to make yourself do it. If you have any friends with expertise in this kind of thing, consider offering them a free dinner if they’ll help you out. If not, the Internet lets you find the definitions of technical jargon faster than ever.
Check the Reviews
One great source of information about life insurance policies are reviews by other consumers. In the Internet age, almost everything imaginable is reviewed somewhere, and a little digging around should turn up lots of testimonials about the specific policy you are thinking about. Pay attention to the source of the review. Certain websites are mostly a repository for negative reviews by customers with a grudge, and one bad experience isn’t always representative of the typical case. By checking several sites, you can try to triangulate between a variety of reviews and sieve out the truth.
Change Coverage as Needed
As you progress through life, your insurance needs will likely change. For example, if you have children after buying your policy, you may find that the total amount no longer is capable of supporting your survivors in the case of a tragic accident. You should think about things like whether you want to start a family when you initially sign up, of course, but you can also change the amount and type of your policy later on. You can do this by either altering the existing policy or by purchasing another policy as well, either with the original agency or through someone new.
Whatever way you decide to go with your life insurance, talk to your agent and clearly express your needs. Together, you and your agent and your loved ones can find the ideal policy that guarantees your family’s future.