Confused about your life insurance options? Here are our TOP 10 tips when purchasing life insurance.

1. Purchase life insurance when young

It is no secret, the older you get, the more it cost to own life insurance. Considering your need for life insurance is greatest when you are young (with a family, debt, mortgage etc) it is also when it is most affordable. It always makes more sense to look at your options when you are young.

2. Go for level premiums if you are thinking long term

Level premium means you know exactly what you will pay for your policy. Term 100, Whole Life, and universal life all offer level premiums. Level premiums mean you can plan for the future and know regardless when that day comes your family will be taken care of.

The alternative would be a increasing policy, also known as term insurance. Where your premiums start low but over time increase. Eventually term coverage becomes unaffordable. But there is good news, you can purchase term insurance to cover temporary liabilities like your mortgage. This will keep your cost down while getting you the coverage you want.

3. Think about your income

When you pass away so does your income. More and more families today rely on 2 incomes to survive. Life insurance can be used to help replace some of that income so your families won’t suffer.

4. Consider Critical Illness and Disability Insurance

Life insurance is there to protect your loved ones in the event you pass away. But what if you become unable to work or critically ill? If you or your family would not be able to continue to pay your expense you should consider disability insurance or critical illness.

Disability coverage will continue to pay you an income in the event you are unable to work due to injury or sickness.

Critical illness protection pays out a lump sum if you are ever diagnosed with Cancer, heart attach or stroke. Some polices will have more illness covered. Look into your options when purchasing CI.

When purchasing life insurance its best to consider disability and critical illness insurance too.

5. Change your life style

For some of you your weight or life style is what is increasing your cost to own life insurance. There are actually companies that will lower their premiums for people who are actively improving their life style.

6. Review your policy

Your need for life insurance changes over the span of your life. It’s best to review your policy every few years as you may need more or even less coverage.

7. Application process is easier than you think

Most people forget this but you need to be approved before you can accept the coverage. That approval process is the application. Ask your advisors what the application process is and what you can expect. Here is the hint: it is easier than you think.

8. Choose the best policy for you

As mentioned, you have a few different options when purchasing life insurance. The best way to choose what policy is right for you is to understand why you want the coverage in the first place. Are you looking to cover a mortgage, replace a income or cover final expense. Then ask whether your coverage protects you. It is that simple.

9. Get a few options before deciding

Most people do not understand what options exist when purchasing life insurance. Regardless of the company you are looking at its best to get a few options to really understand which is best for you.

10. Not deciding doesn’t only affect you, it affects your family

The hard truth is that by not deciding means your family and your loved ones are not protected. It is always better to get some coverage in place, then let your loved ones suffer.