Most adults have a wide variety of financial responsibilities. When you own a house, have children, and are looking to invest in your future, it’s often a good idea to select a life insurance policy. This type of financial service can provide for your family well into the future, even if you’re no longer present.
So, what should you look for in a life insurance policy? What data points should you consider? What information do you need to provide? Here’s what you need to consider if you’re looking for life insurance in the United States.
1. Affordability
This will likely be the biggest point of consideration for most individuals. When you’re investing in a life insurance policy, you need to remember that your salary figures into how much coverage you can afford. When you provide your salary information, the insurer will review your finances and present you with policy options, some of which will be more affordable than others. For instance, if you’re making minimum wage, you won’t want to devote too much of your take-home pay to a monthly policy. As a result, you’ll want to look for policies that match your financial responsibilities.
2. Settlement Options
You want flexibility when it comes to your payouts. In some cases, this means a viatical settlement. A viatical settlement, sometimes known as a death benefit, is when an individual facing a terminal illness such as a cancer diagnosis sells off their life insurance for an immediate payout. Especially for cancer patients and other terminally ill individuals, a viatical settlement is a great way to offset medical bills and keep your family out of debt. Third-party viatical businesses like American Life Fund understand the delicacy required when settling a policy. Especially when looming medical costs could impact the daily life of you and your family, the American Life Fund can help.
3. Automatic Payments
Since life insurance payments aren’t necessarily your most pressing bills each day, you may not want to have to manually pay them every single month. However, depending on your chosen life insurance policy, you may or may not be able to opt-in to automatic payments. This isn’t a major concern, of course, but it doesn’t hurt to have one less thing to worry about each month. On top of this, some insurers will cancel your policy if you miss a payment. Some issuers also aren’t required to reinstate policies, even if you get current with your premium payments.
4. Conversion Potential
This applies specifically to individuals who are more interested in term life insurance. If you’re going with term life insurance and hope to convert that plan to a permanent one down the road, you need to keep in mind that some insurers won’t allow this. The conversion feature is incredibly helpful because it allows you to exchange the term life insurance policy for a permanent insurance policy without having to prove that you’re still healthy.
5. Living Benefits
Unbeknownst to many policyholders, you can rely on your life insurance while you’re still alive and well. Many life insurance companies are becoming more and more invested in adapting to their consumers’ needs. Some newer policies even allow you to receive payments if you’re put into a care facility or a long-term housing situation. It’s always a good idea to consider this as an option when you’re browsing insurance types.
Deciding on a life insurance policy is an incredibly important decision for any adult. It’s a great way to take care of your loved ones when you’re gone and it doesn’t have to be a major monthly financial expense. Make an informed decision and find a policy that works for you. It’ll help you feel ready for whatever the future holds.
