Financial Security and Agent’s Sincerity in Term Life Insurance
Buying life insurance may not be required but it is important to have a policy especially if you are the provider for the family. When it comes to life insurance, your main options are whole and term. Most insurance companies offer other types of life insurance but they are most likely a modified whole or term life insurance policy. For most people, term policy is a great option as it is sold in 10, 20 or 30 years. It means that you can rest assured that your family will receive the death benefit in case you pass away within the duration of duration of your policy. Here are some tips on how you can get the right life insurance for your dependents.
Evaluate your financial needs. When buying term life insurance, you may want to consider your current financial needs and future financial obligations that your family would face in case you are no longer around. Term policies are generally affordable but certain factors like your age and health can make it expensive. Note that life insurance, just like health insurance, gets more expensive as you age. This is because death is more likely for older people. Your occupation will affect the amount of premium as well. The amount of death benefit that you want your family to receive would also matter. Also, the premium is also determined based on the term of the policy. It is called term insurance due to the fact that people can choose from terms such as 10 to 30 years. The term refers to the number of years that the life insurance would be in effect.
How term life insurance works makes it both better and worse than the whole life insurance. It is better than whole life insurance because it is a lot cheaper. However, it is worse because every cent you will pay for the premium would not be reimbursed in case the policy expires and you are still alive. The fact that the policy expires after the “term” is one of the cons but is also the main reason why it is more affordable than whole life insurance.
If you are thinking of purchasing term life insurance, it will be much better if you would talk to an agent or broker. However, be sure to avoid giving in to their offers at the first meeting. Remember, these people are trained to persuade you to get a policy. If you feel that the agent or broker is more concerned on selling the most expensive insurance product, it might be better to look for another. It might also help if you know how the broker gets paid. Some of them are paid on a commission basis while others get paid a salary aside from the commission. It is normal to doubt an agent’s sincerity if commissions are involved as they may have a conflict of interest.