Life insurance is an essential part of any financial plan because it protects your loved ones against debt and can help secure their future. With so many options available, it can be hard to find the right policy. This guide outlines some of the main factors to consider as you shop around.

What to Think About When Buying Life Insurance

1. Age

The younger and healthier you are, the more insurance options you have—and those policies may be more affordable. Buying at a young age extends the duration of the policy, which makes you eligible for a lower premium rate. Once you hit 60, you may not qualify for some basic policies, which limits your purchasing options. Life insurance may also be more expensive at this stage because the policy duration is shorter.

2. Health Status

Life InsuranceSimilar to your age, your health status can affect the cost of a life insurance policy. If you’re in good general health, then coverage will be less expensive. However, if you have a pre-existing condition or a risky lifestyle habit, such as smoking, insurance will cost more. In some instances, having a pre-existing condition will limit your life insurance options to only those that don’t require a medical exam. You may also be required to take certain medical tests to assess your condition.

3. Coverage Amount

There is no one-size-fits-all approach to life insurance. Some people carry enough to cover their mortgage plus one year of income, while others choose even larger amounts to leave to family members for future expenses. The amount of coverage you need will depend upon your current income, any outstanding debt, and your family status and goals.

4. Policy Preferences

There are three main types of life insurance policies: term, whole, and universal. Term life is purchased for a specific period, usually 10–40 years, and is the least expensive type. If you do not use the death benefit before the term expires, any premium payments are lost. However, a convertible policy lets you transfer the value to another coverage type at the end of the term, and a combination policy lets you collect benefits for reasons other than death. 

Whole life is permanent insurance and lasts as long as you keep paying the premium. Universal life is another type of permanent insurance that also comes with investment options. Unlike whole life insurance, universal coverage lets you adjust the premium to account for other changes in your financial status, such as cash value, investment income, and needing to borrow against the policy.

 

If you’re ready to take out a life insurance policy, contact the agents you can trust. Stringer Insurance Agency of Dahlonega, GA, knows the ins and outs of life insurance and can help you secure a policy that fits your needs and budget. They’ve been in business since 1931 and always keep their clients’ best interests as their top priority. Visit their website to learn more about their insurance options, and call (706) 864-3515 to request a quote.