Additionally, once they obtain coverage, they don’t review it to see if the amounts need updating. Here we’ll cover some basic things you’ll need to know about life insurance.
You’ll need insurance coverage if someone depends on you financially. If you’re married and/or have children, you will need some type of coverage to provide ongoing income to them in the event you’re no longer there. This money typically does not have to go through probate and your family or beneficiary should be able to receive it quite quickly. Life insurance policies can typically be used for retirement purposes as well. Even if you are currently single, this is the best time to consider having an insurance policy for long term financial planning. Many plans include an convertabiltiy option tha allows you to convert your policy at a later time without prrof of insurablitiy. As life insurance premiums are based on your current health, locking in a low rate while your young and health will save you in the long run.
Solicit the help of a professional to help you determine coverage amounts. In determining the coverage amount you’ll need, you’ll have to know what your current expenses are and what your expected expenses will be. You’ll also need to plan for special expenses such as college funds and retirement years to make sure your coverage is adequate. There are many sites on the internet that can help you calculate these figures, but you’ll still want the help of a financial professional to help you figure out what’s necessary. They can provide ongoing financial planning efforts such as increasing coverage and determining suitable insurance products.
Determine the type of insurance coverage you’ll want. There are basically two types of insurance – term and permanent. Term life insurance covers you for a fixed number of years. Often offered at a lower cost than permanent insurance, term insurance makes sense in short term situations. Permanent insurance allows you the ability to gain cash-value often in a tax-deferred situation. While costs are higher, they offer flexibility. You can take out a loan against your insurance policy’s cash value and enjoy stable premiums and guaranteed coverage at the same time. Within the scope of permanent insurance, there are four different categories – whole life, variable life, universal life and variable universal life. It is recommended that you check with your insurance agent or financial advisor to determine which is best for you.
Determine how you will purchase your life insurance. Life insurance can be purchased in three basic ways – through a financial professional, at work or directly from the insurance carriers. Life insurance purchased through a financial professional (insurance agent or financial planner) is the most highly recommended option since they will be able to answer any questions you might have. Additionally, they can act as an ongoing resource for you. If you plan to purchase your policy at work, you’ll have to keep in mind that you won’t be able to take this policy with you once you leave the job. Also, your retirement compensation package may not include this. Lastly, you can also purchase your policy through the internet direct from a carrier. Most often, only term life insurance is able to be purchased this way. If you already know what you need, this may be a suitable option; however, if you are new, you might consider contacting an insurance agent before purchasing.
Life insurance protects your family in the event the unimaginable takes place. You can rest assured that your family will have an adequate supply of what they need when you choose the right insurance coverage.
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Dear Mr. Berr, My Great-Aunt owned a Life Insurance policy, for which she had a physical certificate. It was very old (1920s, 30s/not sure of the year). My mother was the benficiary of her estate when she died in 1992 or 1993. At the time, I asked a Financial Advisor if the certificate had any value. He said it did not, but he hardly even looked at it, so I took it home. Over they ears I married, moved etc. and cannot locate the policy. I remember it being from Traveler's Insurance. I have already checked the Connecticut and New York (states in which she lived) unclaimed assets sites, but found nothing. (1) Where can I go to locate information on this policy? (2) Can the death benefit still be recovered? (3) I imagine it was a cash-value policy because of the year it was issued, so is it possible that this policy has substantial value? Thank you. John M. Loiudice
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