Getting the right life insurance policy is one of the most important decisions you will make. It is a long-term investment that will protect your family in the event of your death. There are many different types of life insurance policies available, and it can be difficult to determine which one is right for you. William Schantz of mafllc recommends asking these questions before purchasing life insurance.
What to Know before Buying Life Insurance
How Much Coverage Do You Need?
The amount of life insurance coverage you need depends on your individual circumstances. According to William Schantz, you will need to consider your spouse’s income, any outstanding debts, and the future needs of your children. A financial advisor can help you determine how much coverage you need.
What Type of Policy Is Best for You?
Life insurance policies are of two types: term life insurance and whole life insurance. Term life insurance provides coverage for a set period of time, typically 10-20 years. Whole life insurance is a permanent policy that covers you for your entire life.
What Is Your Budget?
Life insurance policies vary in price, so it is important to consider your budget when choosing a policy. Term life insurance is generally more affordable than whole life insurance, but it does not provide the same level of coverage.
What Riders Do You Need?
Riders are optional add-ons that can be added to your life insurance policy. Riders can provide additional coverage for things like accidental death, long-term care, or disability income.
How Often Do You Need to Renew Your Policy?
Most life insurance policies have a renewal period of every five years. However, some policies may allow you to renew annually or even monthly.
What Is the Underwriting Process?
The underwriting process is how life insurance companies determine if you are eligible for coverage and what your premium will be. The process includes a medical exam, which will be used to assess your health risk.
What Happens if I Cancel My Policy?
If you cancel your life insurance policy, you will no longer be covered. You may be able to get a refund of your premiums, but it will not be as much as if you had kept the policy in force.
What Happens if I Make a Claim?
If you need to make a claim on your life insurance policy, you will need to contact the insurance company. The claims process can be quite complex hence William Schantz emphasizes the importance of having all of the necessary documentation ready.
How Do I Know if I Am Getting a Good Deal?
There are many factors that go into determining the premium for a life insurance policy. It is important to compare rates from different companies before purchasing a policy. You can use an online life insurance quote comparison tool to get started.
Per William Schantz, these questions will help you acquire a framework on buying life insurance. It is an important decision, but with some research and planning, you can find the right policy for you and your family.