The purpose of life insurance is to provide a measure of financial security to a family after an insured party passes away. Depending on one’s situation, benefits can be used to repay debt, fund retirement, or pay for a child’s college tuition. There are multiple coverage types from which one may choose, and if the buyer doesn’t know the facts, it can mean financial disaster for the family. When one shops with Life Insurance Agents Oceanside CA area, they should avoid these common errors.
Buying the Wrong Type of Coverage
There are two types of coverage: permanent and term. A term policy pays out a set benefit and remains in effect for a predetermined period of five to 30 years. On the other hand, permanent life insurance remains in effect for the insured’s lifespan. Whole, variable and universal life are all different types of permanent life insurance. When choosing a coverage type, one should assess their goals and weigh them carefully against the cost.
Underestimating Coverage Needs
In addition to selecting the right policy type, one should also determine the level of benefits they need. There are multiple factors to consider when assessing coverage requirements, such as health, age, life expectancy, assets, debts, and income. While working spouses need extra coverage to make up for financial shortfalls, one shouldn’t underestimate the non-working spouse’s value. Even though a stay-at-home spouse doesn’t make a financial contribution, a life insurance policy can help a surviving spouse to cover expenses such as housekeeping and childcare.
Not Comparing Costs
Like other types of insurance, one should compare prices to ensure they’re getting the best deal. Signing up for life insurance without comparison-shopping can mean spending more than is necessary. When evaluating plans, one should ensure they’re providing consistent information to each company for an accurate quote.
Waiting Too Long to Buy
Those needing life insurance from website should buy as soon as possible because premiums invariably increase with age even if one is in good health. Additionally, as one age, they are more likely to develop a serious condition that can bring high premiums or result in a denial of coverage. Once one decides on a policy from Life Insurance Agents Oceanside CA, they should review it regularly to ensure it still meets their needs. Knowing that one has the right coverage can provide reassurance to the entire family.
For more information visit, Serra Benefits & Insurance Services.
