Life insurance is beneficial at nearly any age and protects your loved ones from financial burden in case of your death. Even young, healthy professionals should consider life insurance and the potential protection it offers. While the question of necessity has been answered, the type of insurance required is still open for interpretation. When buying life insurance, look for these things to increase value and decrease costs.
Seek a Company Without a Payout Wait Time
Every now and then, you’re bound to see a commercial on television promising low or no-fee life insurance exams, or even coverage with no exam at all. The problem with these policies, although they do qualify as policies, is that they are processed differently. When one of these cheap policies is filed, it often takes an extended amount of time to receive a payout. Sometimes, this wait time could be more than a year or two.
For those who require the money from a life insurance policy to pay for funeral expenses, medical bills, and other leftover financial burdens, waiting years for the policy to come through is often an impossibility. When choosing life insurance, look at how long after filing that a payout is expected on average.
Conversion is Key for Term Policies
Term and whole life insurance work very differently. For those with term contracts, which supply 20 or 25 years of coverage, it can be tricky to buy a new policy by the time twenty years have gone by. When you bought the policy in your youth, your original medical check probably came back clean as a whistle. Now, as middle age sets in, your health may be a contributing factor in your inability to get a new contract.
Requesting a policy with conversion means you can renew your existing policy, turning it into a whole life insurance policy without the need for a second fitness test.
Request Underwriting and Comparison Shopping From Your Agent
No two life insurance policy candidates are exactly alike. Limitations on health and wellness, such as being a cancer survivor or having a biological disposition to diabetes, could impede your success for an affordable policy. Similarly, if you travel a lot for work outside of Canada and North America, some firms might see that as a risk and increase your premiums.
By choosing a private agent or working with a company willing to shop around, you save yourself time and money, selecting a “one size fits all” policy. Bespoke life insurance plans are becoming more and more popular, and taking advantage of one is the best way to save money.
Choose a Diverse Team
Selecting a life insurance provider who works in more than just life insurance opens doors to other financial avenues. For example, here at Northwood Mortgage™, we specialize in life insurance but also mortgage brokering and other property related services.
If you’re interested in learning more about life insurance, look no further than Northwood Mortgage. Contact us today at 1-888-492-3690 to speak to one of our friendly Ontario-based representatives.