Life insurance is more important that you will ever know. You may think it is a waste of money while you are young, but that may be when your spouse and children will need it most. This article can help you decide which kind of life insurance you need and how much to get.
When creating a divorce settlement that requires one parent to maintain life insurance in order to keep custody of children, create the insurance policy before signing the divorce settlement. This speeds up the settlement process and insures that any kinks in the making of the insurance policy are dealt with before the custody issues.
Make sure you understand all the exclusions, inclusions, and terms involved in your contract before signing on the dotted line. Items like non-payment for pre-existing diseases, no coverage if you were doing an activity considered dangerous and other exclusions are very common. Read the fine print and understand fully what you are paying for.
Fully disclose any high risk activities you participate in. While this will mean a higher insurance premium, it will also ensure that any claims resulting from such risks are not deemed ineligible. In addition, not disclosing this information might be considered to be fraud, which carries large penalties.
Life insurance is an important item to have in place, especially if you have a family that will need to be provided for after you have died. Do not leave this important issue until it is too late. Investigate a life insurance policy as soon as you are able and ensure that it is backed up with a current will.
In the long run, it’s best to buy life insurance when you are young instead of putting it off until later in life. If you apply when you are younger, you are much more likely to be approved and almost certainly have lower premiums. You’ll save money over all by buying life insurance early in life.
Life insurance comes in many different variations that can fit just about any budget. Once you know the amount of coverage you need, decide whether you want insurance that provides permanent coverage, or just need term insurance to cover you until large expenses are paid off. Once debts are gone and the kids move out, you may decide to self-insure and won’t need life insurance coverage anymore.
Try to avoid the “guaranteed issue” life insurance policies. These policies are given to almost everyone who applies and they don’t require medical exams. The issue is that the issuing company doesn’t know if the policy holder is healthy, which makes these risky to the company. While this policy could be convenient, these risks mean that they will be more expensive for the customer. They tend to only be beneficial when a person is in poor health and cannot get any other type of life insurance policy.
As previously stated, life insurance is more important than you will ever know. It is not a waste of money, but a wise investment in your family’s security. By taking the advice of the above article, you can properly plan for your spouse and children to make sure they are covered at a time when they need it most.