- Understand your needs. No one understands your financial situation better than you. You should always avoid being told what to do when it comes to purchasing life insurance. However, remaining open to advice of those you can trust, such as your friends at Funeral Dignity Life, is also a good idea. That being said, you can begin putting together a rough estimate of the coverage you'll need by adding together your debt, estimated funeral costs and six months - a year of income replacement. Understanding your financial situation is the first step in choosing the right life insurance for you.
- Understand term insurance versus permanent insurance. Remember, buy what you need and make adjustments as changes become necessary. Term insurance is typically renewable and should have a convertibility clause which allows you to make changes in the future. There are certain situations where a whole life policy maybe more advantageous than term; however, do not purchase it simply because your sales representative told you should - always remember to put your needs first.
- Speak with someone you can trust. Everyone here at Funeral Dignity Life has your bests interests are heart and are ready to help you through this process at any time.
- Avoid one-meeting recommendations. If you meet with an agent who makes suggestions that you are unsure of it is okay to say “No, thank you” and keep researching.
- Recognize that insurance is for protection — not investing. Term insurance provides protection only, without a savings component. Whole life and universal life policies have a savings component and are much more expensive. You are almost always better off just paying for term insurance, and using the cost savings to invest elsewhere.
- Ask the tough questions. Don’t be afraid to ask the advisor questions. You should know the product inside out before buying it. Is the policy renewable and non-cancelable? How long are premiums guaranteed for? Is there an accidental death rider? What are the exclusions? The more you ask, the more knowledgeable you will be and the more likely you are to make the right decision for you.