If you have a beloved family, you need life insurance to ensure their financial well-being in case you die unexpectedly. When purchasing such an important service, carefully consider your options to ensure you find the best deal.
Life insurance agents are first and foremost, salespeople. They will try to sell you whichever policy benefits them the most, so always be aware of their tricks. Here are some ways to avoid the rhetoric and seek out the best life insurance policy for you.
1. Find An Independent Agent
Independent life insurance agents are not tied to one specific company, so they are not biased when selling you the best options. While working face to face with an independent agent, you can develop a relationship with them so they know exactly what you need in terms of coverage. Independent agents usually specialize in a few different companies, so they are knowledgeable in various different policies and willing to use their expertise to help you.
2. Consider Supplemental Insurances
Realize that life insurance agents focus mainly on that one type of financial protection, but other services are just as important. Rather than investing solely in one type of life insurance, try to cover all aspects of protection for your family.
For example, Accidental Death and Dismemberment Insurance (AD&D) provides financial coverage for you family should you die of unexpected causes unrelated to health. Also consider MPI as a way to ensure your family can live in your home comfortably if you can no longer pay mortgage.
Most insurance companies do not try too hard to track down beneficiaries, so having something like MPI setup may be extremely beneficial. You are probably wondering how much is mortgage protection insurance. Prices and rates vary and like all detailed things, it is better to look at the details of individual policies.
These are just extra steps for protecting your loved ones that life insurance agents may not tell you about.
3. Try To Avoid Permanent Policies
Agents make commission on their sales, so naturally they will try to sell you the most expensive insurance. Permanent life insurance costs more money, though it may be more secure since you do not have to worry about a lapse in term payments. But many prefer the flexibility of term life insurance, and it costs far less than a permanent policy. Consider carefully whether a permanent or temporary life insurance suits your needs, and do not be fooled by agents who push permanent policies on you for the higher commission.
4. Do Not Shop Online
Life insurance websites use quote systems to trick customers into buying more expensive policies.
Online quotes often show the absolute lowest possible cost, which only a small minority of people actually qualify for. Quote systems may also only show a fraction of available companies, while also only showing companies with the highest rates.
These online systems are misleading, so always try to converse with an agent directly rather than letting them redirect you to their website.
5. Communicate With Your Beneficiary
Sometimes beneficiaries are unaware of their role in an insurance policy. Insurance companies will not try to track down the beneficiary when a policyholder dies, and if the beneficiary does not file a claim, the saved money sits in limbo. Ensure that your beneficiary knows their role, and has all the contact information for the company should they need to communicate.
About Jammie Morey
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