You get an inspection before you buy a home. When you are looking for a new car, read reviews and look around.
The point is, you build self-confidence by limiting your choices and feeling informed. It’s the same with buying life insurance. The decision becomes much easier when you have the facts you need.
Read on to learn how you can be safe when choosing life insurance.
Choosing Life Insurance: What You Need to Know
This is how life insurance works
This is how life insurance works:
- You apply for coverage.
- You take a quick medical examination depending on which plan you choose.
- You pay the life insurance company for coverage if you are approved. Your payment is also called a premium.
- You name one or more beneficiaries.
- Beneficiaries receive a payment (also known as a benefit) after you die.
- The benefit can be used to pay bills, car payments, training costs and more. It̵7;s also a great way to keep your business going when you’re away.
The three most common types of life insurance are full life insurance, lifetime insurance and universal life insurance.
When you buy a full life insurance, your premium remains stable. The insurance builds up cash value, you receive a guaranteed death benefit and the policy remains in force for the rest of your life.
Time life insurance
A life insurance policy offers coverage for a certain period – usually between 10 and 30 years. Although life insurance policies do not build cash value, they do help reimburse your income in the event of your death.
If you like simple, affordable insurance, lifetime insurance is for you.
Universal life insurance
A universal life policy offers guaranteed benefits and cash accumulation. It also gives you flexible payments and benefit options.
If you are an entrepreneur, universal life offers executive benefits to employees, access to cash value to supplement income planning in recent years and tax-free funds for succession planning (consult your tax advisor to see if you are qualified).
What comes next?
You know the three main types of life insurance now. But buying life insurance is not just about finding the right insurance.
Your coverage amount depends on many factors. Your local insurance agent can help you find the right coverage to keep your family or business going after you are gone.
You also need to know which life insurance company to choose. There are hundreds of them out there!
When looking for your plan, here is what to look for in a life insurance company.
What to look for in a life insurance company
Choose a company that meets its financial obligations
You want an insurance company that delivers on its payments. AM Best is an excellent source for checking the financial health of an insurance company.
Bonus: Pekin Life Insurance Company has a rating of A- (Excellent)!
Do not settle for average customer service
Most people do not think much about life insurance after buying it. But when you die, your family or business must contact your insurance company.
It’s a really tough time to call or send a message. You want a customer service staff that handles inquiries with care, understanding and timeliness.
They offer flexible policies
A life insurance policy should offer a wide range of options to meet your needs. Pekin Life Insurance Company offers insurance enhancements to help you get the most out of your insurance.
As an added bonus, identity theft protection services are included at no extra cost in all Pekin Life Insurance Company insurances!
Choosing life insurance is a big commitment. We are here to make it as easy as possible for you to get the coverage you need.
Contact your local, licensed Pekin insurance agent to find the right plan for you!