If this is the first time you’re considering getting life insurance, you need to consider a few things first. Once you’ve signed up for a life insurance company, switching or canceling your policy can be difficult and expensive as well. This is why it’s imperative to do your research ahead of time, so you know exactly which company will best suit your needs.
Here is what to consider when applying for life insurance:
Why am I Getting Life Insurance?
This is a question you should ask yourself before starting the process. Are you getting life insurance to protect your family’s financial security in case something happens to you? If so, you’ll want a specific type of policy that provides coverage if your death means your family loses its primary breadwinner.
The response to this question will determine the type of insurance you’ll need and how much coverage you’ll need.
Which Insurance Coverage Plan Should I Get?
If you’re not familiar enough with different types of life insurance policies, you may want to do some research on them before you choose the one that’s right for you. There are several types of insurance policies out there, such as term life, whole life insurance, universal life insurance, variable life, and combination life. Each has its own pros and cons, so you’ll need to decide which ones meet your financial and individual needs. You’ll want to compare the different policies and determine which is the most cost-effective for you and your family.
You can talk to a life insurance agent for more information, or you can even speak to a financial professional who can help you determine if you really need to get this type of insurance in the first place.
How Do You Want to Pay Your Premiums?
There are generally two ways to pay for your premiums—monthly or annually. For month-to-month payments, you’ll need to pay in advance, while for annual payments, you’ll be billed once per year at the beginning of the policy term. This will depend on your financial situation and how long you want the policy to last.
Whichever option you choose, ensure you’re comfortable with it so you can budget accordingly.
Do You Need Cash Value?
If you need cash value from your life insurance policy at some point in the future, you should opt for a whole life policy instead of a term life policy. With a whole life insurance policy, you can borrow from your policy or withdraw a portion of your cash value in the future if you need to. However, this isn’t the case with term life policies, so if you’re planning to use the policy as a savings vehicle down the road, you might want to consider a whole life policy instead.
How Are the Benefits Paid to Your Family?
You can use your life insurance policy to provide for your loved ones after you pass away. Make sure that your chosen policy offers flexible benefits so that it can be tailored to meet your family’s needs. The sum must be tax-free, and the benefit amount shouldn’t be subject to the number of years you have paid into the policy.
What If You Want to Switch Your Premiums Over Time?
As your situation changes over the course of your life, you may want to make changes to your premium payments as well. Make sure that you choose a policy with flexible payment options so you can switch plans if you need to without any hassles.
As leading providers of life insurance in Houston, Texas, Franklin Life and Annuity can help you get a suitable life insurance coverage plan for you that will ensure the safety of your family. We can also facilitate you with final expense life insurance and burial insurance in Houston.
Contact us today to learn more about us and our services!