Buying Life Insurance: How To Tell If You're Underinsured
- Author Chris Harmen
- Published September 7, 2010
- Word count 789
For many working families, term life insurance is at the bottom of their priority list. Yet for the underinsured, enlightenment about how important the right coverage is often comes too late. Bad life insurance can create a world of problems for a struggling family, particularly if they lose their primary source of income. Finance and life planning experts have formulated a variety of recommendations that help all Americans recognize when they are underinsured. This realization will encourage them to select the best plan so that their families will not struggle in the future.
Who Needs Good Coverage?
Many financial advisors fight against the perception that only the primary income earner needs term life insurance. There is a tendency for stay-at-home mothers or fathers to undervalue their contribution to the household. Remember that if the nonworking spouse is suddenly unable to assist with childcare, the remaining spouse may have to hire a babysitter or make other arrangements. Whatever happens, it is almost certainly not as simple as loss of income. No matter what the situation, parents almost always provide more for their children than they realize and indicate on their term life insurance.
Benefits Of Term Life Insurance
There are generally two types of policies: term life insurance and policies that last throughout the lifetime of the purchaser. Many well-intentioned mothers and fathers buy policies they believe will be permanent and lifelong, only to discover that they are spending their money in a less than desirable way. If they continue paying, their beneficiaries will reap the rewards at the end of their life. If they terminate the policy, they receive a cash reward. With term life insurance, lower premiums provide equal coverage without the confusing incentive to cash in the policy early.
Determining The Right Level Of Coverage
The key element of any term life insurance policy is determining what level of coverage is actually appropriate. Experts advise policy seekers not to begin by thinking about what type would be affordable, but rather what type would really help their family. Individuals should consider how much they contribute to the family income, and what significant obstacles their absence would raise. If currently contributing to a college fund, that should be taken into account. If imposing new restrictions upon the family or forcing a lifestyle adjustment are likely consequences, then they should be considered as well. Any deviation from the current lifestyle could be a big problem, and might well justify extra term life insurance coverage.
When And How To Purchase
After making a decision, many families still put off purchasing term life insurance. After determining the amount desired and the best terms, completing the transaction and obtaining the protection is a vital step. In addition, financial advisers urge families not to deviate from their plans. While purchasing a smaller amount of coverage may seem preferable to purchasing nothing at all, in the long run it can make little difference. Some policies are small enough that they would hardly even pay for themselves, let alone help a family in need.
In addition, some may provide major benefits for a marginal cost increase. The only way to know with certainty is to check multiple providers before coming to a decision. Every service will have its own niche market to fill and may offer different plans based upon that particular market. What is offered by one company may be quite separate from what is offered by another.
Finding The Right Provider
In today's world, shoppers have a new resource for finding policies: the internet. There are many services which can help compare different policies, collecting quotes from many major providers in one place. Some of them also help customers fill out applications for the actual plans, making it much easier to complete the filing. The internet also allows customers to check individual providers for reliability in a way that was impossible before the web. Online reviews and histories can reveal deficits that clients would never otherwise have anticipated. Researching a company online is a key step for anyone looking to buy a policy.
What The Underinsured Can Do
The first step any individual should take is to look at their current policy. If they are underinsured, they should consider purchasing a new policy to supplement their current policy or replacing their current policy altogether. Picking up a new policy is generally simple if the individual is in good shape and of a fairly young age. Even if not, a new term life insurance policy at a higher premium for the right amount is far preferable to a cheaper policy that would be inadequate.
Before signing any life insurance contract, make sure these points have been thoroughly considered to ensure that you are not underinsured.
Chris Harmen is an author for Wholesale Insurance, a website that compares term life insurance from top life insurance providers.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- “Shadowland: The Tragic Ordeal of Frances Farmer and the Machinery That Broke Her.”
- “Glenn Ford: Hollywood’s Reluctant Heartthrob Who Played by His Own Rules.”
- “From Navy Tough Guy to Hollywood Everyman: The Life and Legacy of Ernest Borgnine.”
- Nancy Meyers-Inspired Kitchen: California Casual with Vintage Carved Door Charm
- Yellowstone-Inspired Ranch Farmhouse Style: Rugged Elegance with Rustic Antique Doors
- Used Master Prime Inspection: 5 Critical Checks to Avoid Refurbished Scams
- Staying Charged: A Guide to Electrolyte Balance for Health and Exercise
- Creating a Profitable Business with PLR Planners and Printables
- How to Spend 48 Hours in Cape Town: A Quick Itinerary
- “Wounds That Time Couldn’t Heal: Watching The Best Years of Our Lives Through the Lens of Memory and Mourning.”
- Understanding an ACL Tear
- Top 5 Funniest Gag Gifts for Your Best Friend
- Why Second Hand Pianos for Sale Are a Smart Investment
- Finding the Right Piano Shop Near Me: A Guide to Second Hand Pianos
- “Mira Sorvino: From Oscar Glory to Hollywood Silence.”
- Ireland Sino Institute Launches 2025 China Internship Program
- “Beyond the Spotlight: The Rise and Fall of Dorothy Dandridge.”
- “Through the Mist of Venice: Revisiting Don’t Look Now and Its Haunting Grip on Grief.”
- The Art of Coaching: Cultivating Growth and Inspiration
- Creating a Holistic Backyard Retreat: Old World Elegance Meets Nature
- Understanding T1 and T2 Transit Documents in EU: Your Complete Guide
- Cryptonews.money: Your Ultimate Guide to Understanding Cryptocurrency
- 15 Basketball Dribbling Games and Passing Drills for Better Ball Handling
- Transdermal Progesterone Cream: Benefits for Hot Flashes and Menopause Symptoms
- Tepezcohuite: The Ancient Skin Health Secret You Need to Know
- Quiet Cars and Busy Calendars: The Overlooked Role of Chauffeurs in Post-July Corporate Travel
- 1031 Exchange
- Breaking Karmic Cycles, Creating a Shiva Altar with Deity Carvings and Sculptures from Mogul Interior
- The Art of Whimsical Carved Wall Art & Eclectic Décor
- “Hellfire and Heresy: Ken Russell’s The Devils and the Fury of Sacred Cinema.”