5 Things to Do Before You Buy a Life Insurance Policy

iQuanti: Life insurance acts as a major source of financial relief in the event of your or any loved one's death. The coverage allows for families and assets to continue on, despite a source of their everyday support being taken away. 

With this, choosing a life insurance policy is a big deal, and it starts before shopping around for life insurance quotes. Without the right policy, you may leave your loved ones vulnerable to financial distress. Here are six important things to consider before buying your next life insurance policy. 

1. Determine Your Need

One of the first steps when considering a life insurance policy is to assess your needs. You'll need to sit down and determine why you need a life insurance policy and what you would like for it to cover before shopping around. 

This process will help you determine the amount you need so you're not going into the process blind. At a glance, to calculate your need, you'll need to determine your liabilities and subtract your assets from that amount. More in-depth calculators can be found online to help you more accurately estimate your need. 

2. Decide on Beneficiaries

You'll need to take some time to determine who your beneficiaries will be on your life insurance policies. Things can get complicated when you list a minor, so if you have children, you may want to have the beneficiary be your estate and be delved out once they're 18. 

You may also name your spouse as the single beneficiary with instructions on how the payout should be divided, but the process can also be complicated if your spouse dies before you or at the same time. Because of this, you will want to discuss payout with any potential company or research the best decision for your circumstances. 

3. Decide Between Term or Whole Coverage

There are two primary types of coverage, whole (permanent) or term, with each of the life insurance quotes looking different. Term life insurance is generally less expensive as it only covers a certain number of years and thus has lower premiums. Whole life insurance policies cover the entire period of someone's life, even if they die of natural causes at 90, but it is more expensive. The right decision for you will depend on your financial abilities and the amount of coverage you seek. 

4. Get a Checkup

Before applying with life insurance companies, it can be a good idea to get a checkup. While some may request that you have one to even allow you a policy with them, doing one on your own can be helpful. 

The reason for this is that life insurance companies will raise their rates if you're in poor health or have a medical condition that increases your risks. Knowing your health ahead of time can allow you to shop around for policies that can be adapted to your needs, rather than finding out at the last minute you no longer qualify. 

5. Compare Life Insurance Quotes and Benefits

The last thing to do before applying for a life insurance policy is to shop around for quotes! There are dozens of reputable life insurance companies out there with policies that can fit your exact needs. In order to find the one that is best for your situation, you'll need to compare different life insurance quotes and determine which has the best benefits for the cost.  

Source: iQuanti, Inc.