Spotts Insurance Services, LLC Blog
Life insurance provides a financial safety net for your loved ones. To help you choose what features to look for, here are some of the best life insurance advice several insurance experts have given — tips that could save the first time insurance buyer from making costly mistakes.
“Living benefits” allow you to access the death benefit money yourself while you are still alive under certain circumstances. Being able to access your funds this way could prove crucial if you become ill and need money to pay for medical care or living expenses, so make sure your policy includes this coverage.
Most parents buy life insurance so they can provide for their children when they are no longer around. However, a minor cannot directly receive life insurance money. Some insurance companies can tie up the money until the child reaches 18. Upon reaching 18, the kid gets it without any restrictions. Some have blown their inheritance on splurges like sports cars.
Parents should set up, instead a life insurance, a trust for children that not only allows the child to receive the money — no matter how old the child is — but also outlines specific uses. The trust can also be asked to disburse certain amounts of the money at certain ages, like 25, 30 and 35.
Using group life insurance from a workplace is not recommended, Term life insurance is fairly inexpensive and quite affordable.. More importantly, it doesn’t rely on a certain job.
Whole Life versus Term Life
Before buying whole life insurance, also get quotes for a long-duration term life insurance policy, such as a 30-year term, or a policy that covers you to a specific age, such as 65. By doing this, you can see what it truly costs to insure your life and separate that from the money you’d be paying for fees and the cash value portion of a whole life policy.
Include a check for the first payment with your application,so that you can bind coverage retroactively to that day to ensure your family will have the financial safety net on the off-chance you die before your policy is processed.
Choosing Life Insurance policies can be confusing. At Spotts Insurance Services, LLC, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (570) 742-4500. Get your free quote today by CLICKING HERE.