The decision to purchase life insurance is one of the most important choices you can make to offer long-term protection and a game plan for longevity for your loved ones. When you begin looking around for the best options, it’s important to understand what factors will have an impact on your cost.
Here are three of the major things to consider when going over coverage options:
Age of Policyholder at the Time of Purchase: Generally, it’s no surprise that underwriters value younger people, as they tend to be in better health. When it comes time to pay for your coverage, you may only be paying just a few dollars a month, with older policyholders paying more. It is crucial to be sure that the term is long enough to provide you with adequate protection for a sensible number of years.
The Death Benefit’s Official Amount: When you purchase coverage, one of the decisions you make is the amount of the death benefit. This is the amount the beneficiaries will be paid out in the event of a death. Typically, it needs to be substantial to take care of any financial hurdles that may arise. At Alexander Insurance, we will work through a detailed calculation that takes into consideration housing expenses, education, repaying any accrued debt, and the cost of the funeral.
A policyholder will need to look at their annual income and multiply it by ten to assure future sustainability. However you arrive at your conclusion, it’s good to know that a higher death benefit is always going to result in higher premiums, and for that reason, policyholders should not go about this experience by getting any more protection than they will need to keep their current quality of life.
The Policyholder’s Current Condition: Your general health at the time of policy purchase is quite important, as it will be a deciding factor in setting your premium. Issues such as heart disease, blood sugar trouble, or obesity may impact the insured’s mortality rate, and they will face much higher premiums if they can be covered.
Anyone who can purchase their life insurance while they are still healthy will avoid high premiums and assure that they will secure a viable form of coverage. Some policies will guarantee coverage regardless of health issues you may have, but a physical may also be required. Assuring that the ones most important to you are covered in case anything happens to you is the best means of honoring your family. Our years of experience, fine attention to every detail, and knowledge of available policies can provide you a strong base to begin planning!