Why You Need Life Insurance

Why You Need Life Insurance – And How to Find It

Why you  need life insurance – you need it to protect your family.  Life insurance is that ultimate what if stuff – you don’t need it until you really do.   Even a non working parent needs life insurance – especially if your kids are young.  Why – ’cause if something happens to you, you’ll need someone (like a nanny, housekeeper and cabdriver) to replace all that you do.

Life insurance helps protect you when you don’t have a lot of other assets. As you get older and hopefully have more savings and wealth built up, you might find your life insurance needs are less.

Term life insurance is the cheapest and easiest insurance to get – you pay based on your age, health and other factors for a certain amount of coverage.  Assuming you die cleanly (within the limits of the policy) the company will pay your heirs the amount of coverage you paid.  The more coverage you buy, the more expensive your life insurance premium or policy will be each year.

Most term insurance expires after awhile or the premium goes up – in other words the closer you get to old age, the more expensive the insurance policy is – so if you never use term insurance, you’ve paid for nothing (the same with most insurance.)

There’s another type called whole insurance which allows you to build up a cash value of your policy – some people consider it an investment, others a scam…

But the best way to get life insurance is to find a good life insurance agent.   No matter what you do, make sure you pick a good life insurance agent.  Here are some tips on how to find one:

 

Why You Need Life Insurance – How to Find the Best Agent

1. Talk to your pals, neighbors and relatives about their agents. Word of mouth is always one of the very best methods for finding a top quality expert. When gathering data about agents from your buddies and loved ones, inquire whether or not they have any concerns relating to their agents’ ability to assist you.

2. Staff – Consider professionalism of the agents  staff. Whenever you initial call an agent, you’ll probably speak to the agent’s assistant or an office manager.

• Are you pleased with how the staff member responded to your questions? Did he/she seem knowledgeable and take care of your requests in a timely way?

• A very good agent will have competent office staff.

3.  Contact 3 to 5 insurance agents. This way, you’ll be able to do some comparisons among the agents to narrow your down to the agent you feel most comfortable with.   Plus you should also review their work histories and get some references.  You will then find it easier to rule out a particular agent.

• Pay special attention to each and every agent’s diligence in responding to your questions.

Why You Need Life Insurance – Does Your Agent Know the Ropes

4. Determine how much knowledge an insurance agent has. Inquire about how long the agent has been selling insurance. Ask whether or not they’ve worked for other insurance firms.

• Gather as much information concerning the agent’s history as possible.  You could always ask for a formal resume or use some informal, conversational questions  to get the information you want.

5. Professional designations  – The insurance industry has professional designations just like the securities industry, so be sure to check out an agent’s credentials. The CLU, Chartered Life Underwriter, designation shows an agent has in-depth training on determining an individual’s life insurance demands. It is a great idea to work  with agents who have this CLU designation, if feasible.

6. Focus on acquiring an independent insurance agent. This type of agent can sell many different insurance merchandise from quite a few carriers.
• To clarify, should you call a certain insurance firm and work with one of their agents, then the only sort of policy that agent can sell is 1 of that particular company’s.

• However, with an independent agent, you’ll be provided a wider choice of insurance products having a far better likelihood of discovering 1 to fit your certain demands.

7. Trust yourself when it comes to meeting agents. . If an agent says immediately that he has the  “right” policy for you, be leery.

• A excellent agent will instead listen to your wants and answer your questions. He or she will present the possibilities to you and let you make the final decisions, without insisting you pick one option over the other.

When looking for life insurance be sure to take your time – do your research and interview multiple agents.  You don’t ever want to find out why you need life insurance, but having it will make you feel a whole lot better.