To buy term life insurance It is not complicated or requires a high investment of money and there are even cases in which it is cheaper than in others.
That is to say, there are no high costs or commissions that after a while you stop paying the premium then …
Life insurance: how to buy it?
When it comes to life insurance Term is very simple and cheap and it is even necessary to differentiate if it is a man or a woman and the age.
For example, in the case of a man with an age of 45 years, a policy of 500 thousand dollars with a coverage of 20 years, the monthly payment averages in the 50 dollars.
If it is a woman, the cost is lower because it is evaluated that she takes better care of her health and makes frequent visits to the doctor.
However, before buying them online or going to several of the cinsurance companies to make comparisons follow the steps below.
Steps to buy life insurance
Even if it is life insurance at term follow these steps to decide:
Step 1: First of all, contact the insurance agent, talk so that he can understand your particular needs.
Step 2: Think about the amount of family income and the way in which you will cover expenses and based on this define the coverage you need, the time of coverage and how much you are willing to pay, since it is important that you have sufficient coverage, but without negatively impacting your financial status by anticipating an early death.
Step 3: In the event that you have a current policy, do not cancel the current one until you receive your new policy, as you must review the new policy depending on whether it complies with everything you have required. It may even be that instead of canceling it, you change it to fit your new needs.
Step 4: Keep in mind that term life insurance will lead to a lower value in the first years without increasing what you will use in the future.
He passed 5: Before deciding on your purchase, you must be sure that you will be able to pay the premium, since you may be able to pay the initial value but then you will be able to continue paying it?
Step 6: You must have a vision of the future and for this your insurance agent can help you make an evaluation of your policy because it can increase the premium in the future, In fact at the beginning the low cost may seduce you, but after the first years, when It could quickly hurt you, so to help you, the insurance agent can make a breakdown of the values from year to year.
Step 7: Don’t buy a new policy without first evaluating and comparing both policies because a replacement may be more expensive than buying a new one.
Step 8: As the years go by, your health condition may change and as you can renew your insurance policy for a new term, you should know that the premium will surely increase.
Then you should consult with your insurance agent the value of the premium when you renew it and even despite renewing your policy to a new term, upon reaching a certain age you may not be able to renew it, therefore you should advise yourself on the possibility that you can renew it or not.
Step 9: Although you should read the policy, it may also be that you do not understand its terms, so ask your agent about the benefits and premiums, because as a result of the changes it is possible that the benefits or a part of the premium will not be guaranteed and At different times there may be money received or paid with an interest, what is that interest applied?
Step 10: Once you buy your policy, take some time to review it every few years, since you must consider inflation, your future needs will change and therefore you will probably require more coverage.
If you review it every certain period of time, you will be able to modify it depending on whether it covers the changes that arose in your family and in your income.
Step11: Ask your agent if the premium is single or multiple, for how long it is guaranteed, ask about the initial interest rate and if in the case of a partial withdrawal you do not need to pay the surrender charges or the charges that they indicate. the agent? and if you have death benefit.
Step 12: Since you can buy an annuity, never stop reviewing the contract, because the terms and conditions are always variable, then you should ask the agent to explain any of the terms that you find confusing.
If you didn’t do it when you were comparing insurance companies, do so before the free look period expires.
Then compare all the information you received from the contracts that the insurers offered you, as you will be comparing similar products to evaluate them and make the best decision.
Remember that if you have more questions that your agent or insurer could not answer you, the Department or the Office of the Commissioner of your state will be able to answer all your doubts, therefore contact this organization before buying your policy.
Well, you must bear in mind that it is important that you receive good advice to find the coverage you need with the suitable premium so that you can pay it and not abandon your payment, since after having paid several years in a row, if you suddenly find that you have increased too much and therefore you stop paying you will have lost a lot of money and you will not be able to recover it, because it will have been money lost.
Remember that there are different types of life insurance and the one that indicates term means that the policy will pay when the insured dies during the term of the policy and that you can contract it at a level term, which indicates that the death benefits remain the same throughout of the validity of the policy.
Or you can hire it at a decreasing term, which indicates that death benefits are variable and decrease over the years of the policy.