How to Choose the Right Life Insurance Policy

Whether you’re getting life insurance to protect your partner or a houseful of dependents, getting the right policy should be your top priority. With so many options available, it’s easy to delay your decision if you’re overwhelmed by choices. Trying to weed your way through mounds of insurance jargon can impair your ability to choose the right insurance. Pay attention to the following suggestions to make the right decision for you and your family.

Get multiple quotes

Request multiple quotes with several options from different insurance providers. Ask the agents to include options and restrictions so you can pour over the numbers and make a decision. You might opt for term life or whole life. If you have a SMSF (self-managed superannuation fund), your agent might even present an option for SMSF and life insurance. In this instance, you’ll receive a significant tax advantage, in addition to a lump sum, paid to your beneficiaries when you die.

Stick with the experts

Before you buy any insurance policy, you need to know what you’re paying for. If your agent cannot explain what you’re buying and why, move on to someone who does. Insurance can be quite complicated, which is why you need to understand what you’ll get out of your coverage.

Take your time

Don’t let an agent push you into a sale that you’re not ready to make. You’re the client, and you have to right to take as much time as you need to research and make a decision.

Purchase sufficient coverage

While you certainly want to purchase sufficient coverage, don’t over buy. If the extras push your premiums so high that you’re struggling to pay, take them out. The premiums must be manageable to reduce your likelihood of letting the policy lapse.

Ask questions

The only way you’ll get the answers to questions is to ask. You need to be clear on the type of life insurance, rates, and options available in order to choose a package that will meet your requirements. So ask all the questions you need –even if you think you know the answer.

Get life insurance for the whole family

Consider getting insurance for the whole family instead of just the adults. Your financial status could really take a nose dive after death or serious illness. Life insurance coverage will relieve some of the financial stress on an emotionally devastated family.

Review your policy

Check your policy for changes that may affect your family. Your insurance company will send out a notice if they’ve modified their terms of agreement. Review these changes and call up the company to find out how it will affect your policy.
Stay on top of changes at the insurer, but you also need to update your policy if you make major life changes. These may include getting married or having a child.

Include it on your budget

Treat your premiums just as you would a mortgage or car payment – it is a non-negotiable expense. Budget for it and make your payments. Life insurance is a need, not a luxury.
Obviously, you don’t want to leave your family early, but you need to prepare for unexpected death if you want to take care of your family. The right insurance policy will let you get on with life but provide the peace of mind in knowing that your family will be protected if the worst happens.