1- Life Insurance Annual Review – Needed or Not?
Once you buy your life insurance policy, you put it in a safe place and never look at it again. Even worse, the agent you bought it from never contacts you to review your coverage. Obviously, time changes everything including your life insurance needs. Your policy should, in our opinion, be reviewed by a life insurance professional once per year. Our firm provides this annual service for all of our clients at no additional charge.
2- How much coverage do you need?
Most people are underinsured and do not have enough life insurance in effect to replace their income. We recommend approximately 10 times your annual income as a sufficient coverage amount. Click here to use our Insurance Needs Calculator.
3- Term versus Permanent?
Unfortunately, too many people are sold the wrong type of policy. If you are buying life insurance for income replacement purposes, Term Life Insurance, in our opinion, is a much better option versus buying Whole Life or Universal Life. Term Life Insurance premiums are much less costly than Whole Life and we would recommend keeping your life insurance and your investments separate by investing your money outside your life insurance policy. Buying Term Life Insurance and investing the difference has long been an informed strategy. Click here to read more about Term Life Insurance.
4- Length of Term?
All too often, we see people buying a policy for a duration of time which is too short. For example, it makes no sense, in our opinion, for a 35-year-old to buy a 10 year term policy. We would argue this same 35-year-old will need coverage when they are age 45. Why wouldn’t this 35-year-old buy a 20-year or even a 30-year policy and lock in the premium over this period of time? Our goal is to have our client’s life insurance expire when they are self insured and have alternative sources of income to replace the need for life insurance.
5- Where to buy your policy?
So many times people just don’t shop for the best policy. They just call their car and homeowners insurance agent, get a quote and buy their new policy without comparing life insurance rates. Our firm is able to select from every term life insurance policy available in the insured’s state of residence and our loyalty is to our clients based on their best interests, not the insurance company’s. We will help you choose the best policy for your situation. Click here to obtain your free quote.