One of the most common misconceptions about life insurance is that it’s only for elderly people. The harsh reality is everyone eventually passes away. In a perfect world, everyone would live to be at least 70 years old, but this world is far from perfect. That’s why the moment you start a family and become financially responsible for other lives, you should start shopping for life insurance.
With everything becoming digitized, people are going online in droves to get their life insurance quotes. However, there are some things you can’t learn about insurance from comparing online insurance quotes. Continue reading to get some tips to help you choose the right life insurance policy when shopping online.
You have to get a medical exam.
One important thing to remember when shopping for online life insurance quotes is that you’re more than likely going to have to take a medical exam as part of the application process. You’ll also have to answer questions about your lifestyle and medical history.
The reason for this underwriting process is that insurance companies need to determine your insurability. The most important factors in determining your insurability and your premiums are your physical fitness, life expectancy, and how much insurance you purchase. Tobacco users, people with high blood pressure, and people with a troublesome medical history can expect to pay higher rates.
It’s important to get the right type of life insurance.
There are many different types of life insurance policies, and choosing the right one is integral to protecting your family members. Term life insurance policies are the most popular among young adults. The reason young, healthy people tend to choose term life is that term life policies tend to have lower premiums. A term policy can be as low as $20 or $30 a month, and other life insurance policies can be as much as 10 times that amount.
One of the key features of term life insurance is that the insurance policy lasts for a specific amount of time. The typical terms for term life insurance are 10, 20, and 30 years. If you pass away within the time of your term life insurance policy coverage, your family will receive a death benefit.
You must decide how much coverage you need.
One of the most important decisions you have to make about your insurance is how much coverage you need. True, you want to get the best rate possible for your insurance policy, but you also want to take care of your family’s needs if you pass away during the term of your life insurance policy.
A great way to figure out how much of a death benefit your family needs is to multiply your annual income by three. This methodology isn’t an exact science, but the point is to make sure you can cover your final expenses and provide at least a couple of years’ income.
Ask around before choosing a life insurance company.
Even though you can find insurance quotes online, it’s important to do your due diligence. Speak with family members and friends about their experiences with different life insurance companies. Customer feedback is always the most trustworthy source of information for decisions as important as life insurance.
Shopping for life insurance has to be the least fun part of adulting, but it’s probably also the most important. A life insurance policy is the best financial protection you can offer your family in case of your untimely demise.
The key is choosing the right policy for your unique situation and doing your best to take care of your health. With the right coverage, you can provide for your family’s needs for years after you’re gone.