Five Questions to Ask before Choosing a Policy

Choosing the right life insurance policy for you can be a confusing business. To help your decision, we’ve provided the five questions you should ask yourself to decide on a policy.

1. How long do you need your coverage to last? If you have young children, you might be interested in life insurance protection until they are financially independent. If you need coverage for a limited period of time for this or any other reason, you should apply for a free term life insurance quote. You might also consider a free term life insurance quote if you are just sending a child to college or taking out a new mortgage. Conversely, if you need lifetime protection for your family, consider permanent life insurance.
2. What can you afford? When it comes to your free term life insurance quote, a policy’s affordability is only relevant if you specify the temporal context. That is, do you need an affordable policy now or later? Term life insurance can give you a lot of protection for a small cost in the short-term, but, once your term expires, you costs to renew could be prohibitive. On the other hand, permanent life insurance, though initially more expensive, ends up being more economical in the long-run because your premiums remain consistent throughout your lifetime.
3. Are you interested in a policy with investment potential? If you want a no-frills policy that will not have any further value once it expires, then get a free term life insurance quote. If, however, you would like to build cash value with your policy, permanent life insurance might be a better decision. Your beneficiaries will receive this benefit, usually tax-free, upon your death. You can also borrow or withdraw from it over the life of the policy, but this will reduce the death benefit.
4. How important are tax breaks to you? Some life insurance policies give you unbeatable tax breaks that allow you to earn money tax-free over time. Permanent life insurance allows you to earn money on a tax-deferred basis. If you get a free term life insurance quote, however, you will not enjoy any such tax breaks. With both policies, most death benefits are paid tax-free.
5. What is your level of indebtedness? The amount of coverage you need when applying for a free term life insurance quote will depend mainly on your income and how much debt you have. If you have a substantial amount of debt right now, like mortgages, credit cards, college tuition bills, etc., you want to make sure your policy would be able to pay off these obligations without leaving your family mired in debt.

If you have any further questions check out our term life insurance FAQ page.