Tag Archives: out term

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Make sure you have the right life insurance coverage for your family

9 Tips for Buying Life Insurance for the First Time

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Buying life insurance for the first time can be a daunting experience, but knowing why, when and how to buy life insurance can make the whole experience a lot easier. Before you contact your insurance agent, check out these nine simple tips on how to make the whole process less complicated.

  1. Why are you buying life insurance? The main reason that people buy life insurance is to provide financial security for their children or spouse. The benefits of your life insurance payout can be used to pay for funeral costs, the remaining balance of a mortgage or college tuition, or just to replace the income that you provide for your dependents.
  2. When should you buy life insurance? Life insurance is less expensive the younger you are when you buy it. While your needs may change as you age (additional beneficiaries, increased expenses, and so on) you can always add another policy. Some life insurance policies also allow for conversions and upgrades when your needs change.
  3. Who are your beneficiaries? Your beneficiaries can be a person, a business, or a charity. Before buying a life insurance policy it is important to know who your beneficiaries are so that you can buy a plan that will meet their needs.
  4. How do you make sure your benefits go to whom they’re supposed to? By having a last will and testament you can make sure that your life insurance benefits are paid out to the proper beneficiaries.
  5. How much coverage do you need? A general rule of thumb is to buy coverage that is equal to eight years of your salary, but this is not set in stone. Everybody’s needs are different in this regard. It’s good advice to speak with a financial professional to get a better understanding as to what kind of coverage you need before speaking to an insurance agent.
  6. What type of policy is right for you? There are two main types of life insurance policies: -term life and permanent life.

A term life policy is purchased for a specific period of time. If your term life period expires before you pass away then your benefits will not be paid out. Some term life policies can be converted to whole life policies before they expire, so it’s important to know whether or not your policy can be converted. The benefit of a term life policy is that they are generally much less expensive than whole life policies.

A whole life policy provides lifelong protection, and some whole life policies even gain interest. A whole life policy is more expensive than a term life policy because it often accumulates cash value and is designed for a longer period of time.

  1. How much coverage should you buy? Two things to consider in regards to how much coverage you should buy are what you need and what you can afford. You don’t want to buy life insurance that you can’t afford. Find out what coverage you need, and then discuss with your insurance agent to find the best way to cover your needs within your budget.
  2. Should you buy your policy through the insurance company or an independent agent? You should buy your life insurance policy through an independent agent. An insurance company can only sell you what they offer, but an independent agent can shop multiple insurance companies to find you a policy that best fits your needs.
  3. How should you choose your insurance company? It is important to choose a quality provider. This is another benefit of using an independent agent to find your policy for you. An independent insurance agency will know which companies have the best rating and will still be around to pay out your benefits. Many of the top rated insurers have liability to pay out to their customers even if the company itself goes under. You can also check out a qualified rating service like A.M. Best Rating Services, which rates insurance companies for consumers.

Talk to a Yetter insurance agent for more information about obtaining a new life insurance policy. We’ll help you choose the right plan that fits your needs. Contact Yetter Insurance today at our Milford office. Visit www.yetterins.com or call 570-296-8329.

 


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Life Insurance for the aging

Living Longer than Expected

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Four tips on what to do when you outlive your term life insurance policy

Buying life insurance is a difficult decision, and no one wants to think about their eventual passing, but what is one to do if they outlive their term life insurance policy?

  • If you are approaching the expiration of your term life policy, you can convert it to a permanent policy, such as a whole life or universal life policy. The premium may be higher, but the protection of a permanent policy is valuable and you may be able to skip some of the medical exams.
  • You can buy a new term life policy. This will not include the previous policy, and thus you’ll be starting over from scratch, but this option will offer you a lower monthly premium than converting your previous policy. That said, it may be that your needs are not the same as when you first bought your policy, which can affect the price of your premiums.
  • If your needs are not the same as when you bought your initial policy it might also be beneficial to buy a new whole life or universal life policy. The premiums will still be higher than buying a new term life policy for the same coverage, but this will be guaranteed to last and grow for your entire lifetime.
  • For some, the best option may be to buy a new whole life or universal plan that upgrades their previous plan. Many choose term life policies for financial reasons, and years later the same individual may be able to afford a much better plan that will provide their loved ones with more than just security. For those who have done well financially, buying (or upgrading to) a better policy that is guaranteed to last a lifetime could be the best choice.

When buying life insurance it all comes down to what you can afford, and what you need. Some are just looking to cover their funeral and pay their debts, others may want to send their children or grandchildren to college or leave their spouse enough money to live comfortably once they are gone. It is up to you to decide what kind of policy is best for you and your family.

For more information about obtaining a new life insurance plan or upgrading an existing one, talk to your Yetter Insurance Agent. We’ll help you choose the right plan that fits your needs. Contact Yetter Insurance today at our Milford office. Visit www.yetterins.com or call 570-296-8329.

 

Resource: https://www.erieinsurance.com/blog/2016/outlive-term-life-insurance-policy

 


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