So you’re taking the big step and purchasing a life insurance policy. Good for you! If you’re young you’re already ahead of the game since premiums get more expensive the older you are. Before you think it’s smooth sailing from here on in, just know there are a few things you should avoid when you’re buying.
As with any insurance, it is very important to keep paperwork and/or company name available to your beneficiaries when the time arises. It is as simple as registering on a life insurance database to guarantee this information will never get lost and become a lost life insurance policy.
First things first: don’t lie on your policy application. Maybe you want to cook the books a little and adjust your answers to possibly get a better rate. Even an honest little white lie about the cigarette you shared at the club party two days ago counts. Some people choose to lie about tobacco use, some lie about traffic violations. Just know that any lie will probably be found out since the life insurance company will ask for documentation. And then you could be denied coverage.
You may also be tempted to wait to buy life insurance until when you’re ready. But the older you get the closer you are to dying and every year that goes by without insurance is a year your premiums get more expensive. It’s easy to think that since you’re healthy now you will be next year or the year after that. But no one’s health is a sure thing and if something happens before you purchase that policy you may be paying more than you ought to or even be ineligible.
Don’t be tempted by any life insurance policy that doesn’t require some form of medical exam. Those policies might not have the coverage you need at an affordable price point. Shop around. See what’s out there. It may also be in your best interest to avoid going to the doctor’s office right before your insurance exam anyway. What if something shows up at the appointment? Something that could cause problems with your policy or premiums? By all means don’t skip your regular exams. But know they’ll want to review your medical history as well.
Probably the number one way to ruin your coverage is to purchase too little of a policy. If you don’t have enough coverage you’re only setting your loved ones up for failure after you’re gone. Go over your expenses and take a close look at your individual situation. Will your coverage pay off all your debt and provide an income for your family? Could it pay for those work-related benefits they’ll lose once you’re gone – health insurance, retirement funds, child care etc? Take a hard look at the expenses your family will have over the next couple of decades and then buy enough life insurance to get them through to the other side.
Some insurance companies will want to know your travel plans, too. Traveling to South America to do a little rafting down the Amazon? Going on another African safari? Hold out on making any of those trips until long after you have a policy working for you. The less risky your behavior the more likely you are to be accepted for coverage.
Think of your life insurance policy as an investment in the future of your family and loved ones. Educate yourself about what’s available and take a good look at what you (and your family) are going to need. Then don’t hesitate any longer. The sooner you act the better.
Until next time, Michael Hartmann http://www.findyourpolicy.com/
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