Life insurance is an important component of planning about your as well as your family’s future financial needs. A lot of people think that the benefits of life insurance can be availed only after the death of the insurer. However, this does not hold true for all policies. It is critical to choose the right type of policy you purchase and amount of coverage to realize maximum benefits in the long run.
Given here are some important factors that you must consider before applying for a life insurance policy:
- Type Of Policy: The first and foremost thing that you need to do is to carefully analyze the different types of life insurance policies available, such as term and cash value. You must consider the financial requirements of your beneficiary while making the decision. Depending upon your budget and needs, you can choose from whole life, universal life, individual/group health, long term care, annuities etc.
- Coverage Amount: Evaluating the amount of coverage you need involves calculating your current and potential future financial needs. These may include the lifestyle of your family, any existing loan or mortgages and your long term goals. The policy benefits may be sufficient enough to meet all these and bear out the family’s overall monthly expenses.
- Coverage Period: Different types of life insurance provide coverage for certain time periods to the insurer. While some policies offer benefits after an individual has attained a specific age, say 60 years, others may be designed to provide financial security to the family after the death of the insurer.
- Premium Cost: Life insurance premiums may be paid on a monthly, bi-annual or annual basis. They must be affordable enough for you to manage within the overall budget. You should evaluate your total income and expenses to determine if you can spare enough funds to pay off the premium. Cash value policies are generally more expensive than term life insurance.
- Renewal Policies: Most term insurance policies can be renewed regardless of the present health condition of the insurer. However, you may need to pay higher premiums for each renewal. You must ask your insurance agent about the approximate amount you would have to incur and till what age you can renew your policy.
- We, at Smith-Reagan Insurance Agency, offer affordable life insurance in McAllen, TX. We offer a wide range of policies and coverage options that can be customized according to the requirements of the clients. For more information, you can call us at (956) 399 - 1353 or visit our office at 148 N. Sam Houston Blvd, San Benito, TX 78586.