If your term life insurance is expiring soon, take action. If you are still healthy, check into another term life insurance policy. If you’re health is compromised, try getting permanent life insurance. Doing this will let you skip getting a new medical exam, and in the years to come, your permanent insurance payments may wind up costing less than a term policy would.
Stay away from life insurance policies where unusually high commission rates are in place. Commissions are payments that go to your insurance agent and are included as part of the premium you pay. You can save a lot of money with “no load” policies if you can locate an insurance company who will directly sell you this type of policy. It’s important to remember that any funds paid out from the insurance company aren’t taxable. Thus, your heirs will be able to keep their entire benefit from your life insurance policy after your death. You may have more peace of mind knowing that this portion of their inheritance is safe from taxation laws. Make sure you take some time to get quotes for a variety of companies to ensure you’re getting the best deals. This is quite simple to do nowadays due to access to the Internet. Your goal is to get all the coverage you need for the best possible rate. But be careful to research the company itself also, to make sure they are reliable. It is important to take the time to do research for all of the companies with whom you could potentially open a policy. Choosing the first company listed in the phone book could lead to poor coverage and over payment for your policy. Are they solvent? Is their credit rating good? A policy might look good on paper, but may be practically worthless because it is offered by an untrustworthy company. Find the right type of life insurance policy for your needs. The three basic types are, whole life, term life and variable life. Whole life policies will be the most expensive, but they operate much like a savings account, meaning that you can use it as an asset in the future, if it hasn’t been used.
Term life might be the cheapest insurance, but keep in mind that it does expire. The main advantage of a term life policies is the savings you can keep. Keep in mind that permanent life insurance serves as a financial asset that never expires, and you can always borrow money from it with no tax consequences. Term life insurance, on the other hand, is only good for the amount of time you pay for. Watch out for tell-tale signs that suggest an agent or broker might be shady or a scammer. If an agent tries to convince you that ratings are not important, or possibly not available, or if they act as if they know more than anyone else, take the time to file a complaint with the customer service department.