Life Insurance Considerations
Life insurance is one of the most overlooked insurance policies. It is also one of the most important policies since it will provide financial protection for your loved ones after you are gone. Many people avoid buying life insurance simply because the process can be very intimidating. Keep this life insurance checklist in mind to help you invest in the right policy for your specific needs.
- Know your options – there are two main types of life insurance to choose from. The first is a term life policy, which will provide coverage for a specified amount of time. The other is a whole life policy, which will provide coverage for your entire life, no matter if you pass away next month or live to be 100.
- Know how the premium works – making your premium payment on time each month, or yearly if you choose to do so, is the only way to ensure that you stay covered. The cost of your premium is based off of how risky your insurance company considers you to be.
- Choose the right beneficiary – your beneficiary is the person or institution that will receive the death benefit, or payout, of your policy when you are gone. You should consider choosing a primary and contingent beneficiary. Your primary beneficiary will receive the death benefit when you pass away, as long as they can be found. If they cannot be located by your insurance company, then your contingent beneficiary will receive the payout. You can choose a single person as a beneficiary, or an institution, such as your favorite charity.
Contact the insurance professionals at Gant Insurance Agency in McKinney, Texas for more information on choosing the right life insurance policy. We will work with you to ensure you have the right amount of coverage, all at the right price.