Trying to determine which life insurance plan is best for you can be tricky, but narrowing down your financial goals can help make the decision easier.
Forbes LearnVest conducted a nationwide study on life insurance in America showing 57 percent of respondents owned life insurance but only 28 percent felt confident about their understanding of life insurance. Sixty-six percent of study respondents had a poor understanding of how payouts on their life insurance worked.
When thinking about assets, individuals should not only consider who depends on their income, but future expenses that may arise, writes financial representative at Northwestern Mutual, Robert Stolz, in TippNews Daily.
Purchasing a life insurance plan is something that shouldn’t be put off. An accident can take place at any time, leaving loved ones without financial support. Stolz says it’s important to find an agent who is trustworthy and who can meet with you on a yearly basis to review major life changes.
Even if it means paying a higher premium, people shouldn’t leave out parts of their medical history because it may result in a plan being cancelled or claims being denied, Stolz says.
Most importantly, Stolz says people should tell their beneficiaries about the plan and keep all documents and insurance company contact information in a safe location.
As with any major decision, purchasing life insurance is something consumers should think about and thoroughly research.