5 Questions to Ask When Choosing Life Insurance
Shopping for life insurance is a personal Choosing Life Insurance decision. Protecting your family is your priority. Robert Bland, Chairman and Founder of Life Quotes, Inc., a GEICO partnership, gave us five questions to consider before purchasing life insurance. Continue reading to find out more about life insurance tips, and what questions you should be asking.
Are my dependents and/or debt? Who should be my beneficiary
Without you, what would happen? You must consider their financial security. Income replacement is one of top reasons people purchase life insurance. “Life insurance is an effective way to protect your loved ones and leave an inheritance. Most often, this will be a spouse and/or a child.
What amount of coverage do I require?
The difficult but critical question of how much life insurance do you need is one that can be hard to answer. The industry average is 10x your annual income. However, this may vary depending on your personal circumstances. “How would your family be able to make ends meet if their paychecks stopped coming in?” Consider how much money it would take to replace your income for the next 20-30 year.
Other large debts like your mortgage may be outstanding. You will want to increase your coverage. “It is a good idea for your family to have sufficient life insurance to cover any outstanding debts such as your home mortgage. You can then add some additional coverage to your policy to leave your family a nest.
Which term should you get?
The flexibility and affordability of term life insurance make the entire process much easier and more manageable. Term insurance provides simple death benefit protection, without the need for expensive investment components or “cash value”. “Discuss your income needs with an agent. They will help calculate the best policy terms, limits and time frames.
What’s my Choosing Life Insurance medical history like?
Even though you might be in good health, the initial assessment will still require your records. “Get all the facts you can about your health. You will be asked about them.” However, don’t be discouraged. A standard term life policy typically covers death by any cause.
How do I get a great price?
Through the GEICO Insurance Agency, you can instantly get multiple quotes on life insurance. The GEICO Insurance Agency allows you to instantly compare quotes for life insurance.