NEW YORK, NY / ACCESSWIRE / March 13, 2023 / Aflac: Purchasing life insurance can be a fairly simple process. However, since this is coverage that protects your family after your death, there are a few things to keep in mind so you don’t end up with a bad policy or overspending than you need to. Here are four things not to do when buying life insurance.
Don’t get a policy without doing your research
The marketplace for life insurance products is huge! You can find everything from basic term life insurance online to more advanced policies like indexed universal life insurance, which has an investment function in addition to the death benefit.
One of the best things a life insurance customer can do is research the options. Take some time to understand how each policy type works and their potential advantages and disadvantages.
Although the majority of brokers will give you an honest recommendation, it’s still in your best interest to do your own due diligence. Not only will this make you a better informed customer, but you may also learn about insurance products that could help you financially, such as: B. Permanent policies where you can take out tax-free loans against cash value.
Don’t buy from a company you’ve never heard of
While it’s possible to go online and get dozens of life insurance quotes, does that necessarily mean you should? How do you know one of these companies is reputable and will exist long enough to pay out a claim when the time comes?
To ensure the financial protection of your loved ones, you should have complete confidence in the provider’s ability to meet the death benefit that you have contracted for. For this reason, it is important to choose life insurance that is known and reputable.
Don’t go with the cheapest policy you can find
When it comes to life insurance, cheaper is not always better. Again, some online providers can be questionable and try to lure in unsuspecting customers with heavily discounted rates. Even if the policy costs a little more with a reputable life insurance company, you’ll sleep better at night knowing you’re in the hands of a reputable company.
At the same time, it is also important to buy life insurance with a long-term mindset. For example, buying term life insurance is initially much cheaper than a perpetual policy. However, this policy will eventually expire and you may be at risk of losing coverage if your health has deteriorated. In some cases, spending the extra money to get lifetime coverage with permanent life insurance may be a better option.
Don’t wait to apply
Life insurance premiums are based on many factors, but the main components are the applicant’s age and health. So the longer you wait to buy a policy, the greater the potential for both of these variables to work against you.
The right time to buy life insurance is when you are young and healthy. This way you can secure the lowest possible rewards. If it’s a cash value perpetual life insurance policy, this can be particularly productive since you’re making contributions over a longer period of time.
The final result
Don’t wait to get life insurance. Start by researching what life insurance products are available, what they offer and how they might benefit you. Get multiple quotes from reputable companies and make your choices with a long-term mindset rather than picking the cheapest one.
The content of this article is provided for general informational purposes and does not constitute tax, legal, health or financial advice for any person or any particular situation. Employers, employees and others should consult their own advisers as to their situation. For full details, including availability and cost of Aflac insurance, please contact your local Aflac representative.
Aflac insurance coverage is provided by Aflac. In New York, coverage is provided by Aflac New York.
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Angie Blackmar
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SOURCE: Aflac
