It’s uncomfortable to think about your own death, but taking some time out to plan ahead and ensure that your family would be taken care of in your absence can give you a great deal of relief. But what should you look for in life insurance plans online? All plans are not created equally, so look for the following four things in a life insurance plan before you commit:
1. Type of Plan
There are several types of life insurance plans on the market, and it’s important to make sure you are selecting the right one to suit your needs. Term life insurance policies are contracted and provide you with coverage for as long as you are under the contract.
Whole life insurance, on the other hand, provides you with coverage until you die. Universal life insurance is relatively new, but it is also a lifelong policy with limited amounts of flexibility. Make sure that you do extensive research about each type of life insurance policy from reliable sources or enlist the help of an expert in order to pick which type of plan is right for you.
When it comes to life insurance policies, some people believe that more is better. This isn’t always the case, especially if you are unable to continue paying for your expensive coverage later down the line. Instead, look for life insurance policies that are well within your budget that still provide enough coverage.
Term life insurance tends to be the most affordable option, and it can still give you enough coverage to ensure that your family is taken care of in your absence. Although it’s not necessarily best to go cheaper with your life insurance either, it’s important to pick a policy that you will reasonably be able to afford in the long term, even if you have to make major cuts to your budget someday.
If you realize you can no longer afford your current life insurance policy, it may cost you more, in the long run, to cut coverage and re-enroll later on.
3. Reasonably Quick Payouts
When signing on to a life insurance policy, be sure to read the fine print. Some companies will hide clauses within your plan that builds in a multi-year waiting period before your family can receive payouts from your plan, which can cause all kind of headaches for your loved ones.
Instead, look for plans that will pay your beneficiaries 100% of their sum quickly instead of plans that are based on “simplified issues” that delay payout when it’s needed most.
4. Living Benefits
Many life insurance policies now provide benefits while you’re living. One such benefit is that you can receive some of your payments back if you no longer need the coverage. This is a fantastic benefit that has provided a helping hand to many that are diagnosed with a terminal illness or need end-of-life care.
Shopping around for life insurance isn’t a fun way to spend your time, but it’s certainly an important one to make sure your family will be well taken care of when you pass away.