Have you decided to purchase term life insurance? This is a big step in your life. Nobody enjoys buying life insurance, but most people find out soon enough that this is something they have to do.
Although you may have a clear understanding of why you want to buy a term policy, this does not mean you are ready to move forward just yet. There are many factors to consider, all of which are meant to help you make a more confident final decision.
Here are three details to focus on as you attempt to choose the policy that is best for you:
1. Realize from the get-go that no two life insurance companies are the same.
Yes, there are hundreds of companies that sell term policies. However, this does not mean that all of them are identical.
You should compare at least three policies, all from different companies. This gives you the chance to learn more about the products being offered, as well as the premium that you are required to pay.
2. Is my premium going to adjust?
When shopping for term life insurance, you must be 100 percent sure of what you are getting before you sign on the dotted line. Most people prefer coverage offered at a fixed premium for the life of the policy. This way you know exactly what you are going to pay, month after month, until your coverage expires.
There are policies that adjust at particular intervals, such as every five years. If you are looking for a lower payment in the early years of your policy, this may be the way to go. Just make sure you compare both options so you have a clear understanding of what is available to you.
3. How long and how much?
As the name suggests, a term life insurance policy offers coverage for a predetermined period of time. For example, you may initially be interested in a 10 year term but find out soon enough that 20 years is better for somebody in your position.
Of course, you also need to focus on the amount of coverage that you are going to buy. As a general rule of thumb, the higher the death benefit the higher the premium. There is no right or wrong way of saying how much coverage you should buy. This is different for every consumer, so make your decision with the help of your family as well as your insurance agent.
The main advantage of term life insurance as compared to whole life is a lower monthly payment. You are not going to spend nearly as much money. That being said, your policy will eventually expire and you will be faced with a tough decision: do I purchase another policy or do I move forward with my life without any insurance?
You should never feel like you are alone when buying a policy. Most people in Houston purchase life insurance coverage after getting married. For this reason, you definitely want to include your spouse in the decision making process. After all, he or she will probably be your beneficiary.
Also, your life insurance agent is full of information. No matter what is on your mind, this is the person who can answer all your questions. From coverage and premium details to information on paying for your policy, you will always have somebody to lean on.
With this advice, you should be able to choose shop around and find a life insurance agent in Houston to secure the ideal policy that is best for you. If all else fails, be patient as you compare your many options and make a final decision. The more time you spend on this process the more you will learn.
In closing here is a great video from the Khan Academy covering the Term Insurance buying process.