Policy Price

Article by Denise

There are several good reasons why it is important to review your life insurance coverage periodically. For one thing, when you took out a policy your financial situation was different from what it is today. You may have got married, had additions to your family, got a new job or risen in rank and position at your place of work. Assessing your current financial position will help you adjust your life insurance coverage so that your death benefits will adequately cover your family’s financial needs and keep them well-protected even after you have gone.Why should you consider increasing your life insurance coverage? Here are a few reasons to review your insurance coverage:Marriage. Many people choose to take out a life policy when they are single. This works out to your advantage as the younger you are, the better chances you have of getting premium rates. When you get married, you should consider increasing your life insurance coverage to make sure your surviving spouse is protected against financial loss in case you die an untimely death.Starting out your life together, you and your spouse may want to consider purchasing a house or beginning a family. You should increase your death benefit to cover the loss of your income, any outstanding debts you may have such a mortgage, and future expenses such as retirement. This may amount to paying a higher premium, but it will ensure that your spouse will not be left in dire financial straits trying to pay off loans and struggling to make ends meet.Children. The first time you should consider increasing your life insurance coverage is when you get married and the next time you should consider an increase is when you have children. Having a child means a lot more joy in the home, but also a lot of added expenses. You should consider your child’s education fees and college tuition in your death benefit. This amount can be kept as an endowment for your child. With each additional child you have, remember to review your insurance coverage and make the necessary increase. Your death benefit should include your salary for a number of years, the cost of day care along with education fees and other household expenses you incur within a year. If you cannot increase your coverage to include all of these expenses, you should try to increase the coverage as much as your budget permits.Getting a hike in salary! A raise in salary should be followed by an increase in insurance coverage. Why? When your salary gets hiked, you automatically begin enjoying a higher quality of life. Your death benefits should be increased to cover the higher lifestyle that your family will get used to.Calculating your life insurance coverageYou’ll find online insurance needs calculator an easy way to arrive at how much insurance coverage you need. You will need to estimate costs of various categories of expenses. The categories are added up to give you the total amount of insurance coverage your family will need. Subtract the amount of life insurance you already have. The balance left will give you the amount you need to purchase.How can you bump up your existing coverage? Ask the insurance company or the agent who sold you the policy to find out how you can add more life insurance coverage to your existing policy. But remember you do not need to add to your current policy. You could purchase a new policy from a different insurance carrier. Many people have multiple insurance policies through different carriers. You would need to mention the various insurance policies you already own when applying for a new one. Whether you add to your current coverage or purchase a new life policy to your portfolio, you will need to go through an underwriting process. You may be required to go through a medical and disclose personal information regarding your finances, occupation, etc.Getting low cost life insurance!Remember, too, to shop around and buy life insurance online. This is the most convenient and quickest way to get low cost life insurance! Most people don’t realize that insurance is a competitive business. Rates may differ from carrier to carrier. Some insurance companies may also offer free riders that could save you money in the future. For instance, if you have a waiver option, your policy will not lapse if you miss a payment. Always shop around for the best bargains and purchase your policy from life insurance companies who have excellent financial strength and ratings to prove it.Online insurance providers allow you access to instant insurance quotes. You’ll get the best life insurance quotes from carriers who have an excellent reputation for payouts. Receiving multiple quotes