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Life insurance is a valuable financial planning tool, but it takes careful thought to figure out exactly which products will best suit your needs. Because there are a variety of options available, it can be quite a challenge choosing the right policy. This is why the residents of Sheffield Lake, OH, turn to Custis Insurance Service for professional guidance. Below, the insurance experts go over some of the most important factors to consider when shopping for coverage.

3 Considerations to Think About When You’re Purchasing Life Insurance

1. Types of Policies

Life insurance comes in different forms, so you must learn about each of them to determine the kind you need. The most common types of coverage are term, whole life, and universal. Term life insurance will provide you with coverage for a set period of time and then expire if you choose not to renew it. Whole life insurance will remain intact for the rest of your life as long as you continue to make payments while accumulating cash value. Universal life insurance is also designed to be permanent but allows for more flexibility so you can make adjustments when needed.

2. How Much You Need

life insuranceYou must also think about how much life insurance will be adequate to meet your needs. There are several aspects that will influence the amount of coverage you buy. These include the financial obligations you have, the number of people who depend on you for financial support, how much your family would need to replace your income and continue to live comfortably, and if you plan to leave behind financial gifts or pay for college educations. There are a variety of situations you may need to plan your life insurance around.

3. Duration of Coverage & Your Budget

Knowing how long you wish to be insured will narrow down your policy options to the ones that are specific to that duration of time. Some people elect to only be covered for a short while until they pay down debts or finish paying off a mortgage. The budget you have available for monthly premium payments will also play a large role in the policy you select, as some tend to be more affordable than others.

Purchasing life insurance doesn’t have to be a daunting task. Although it’s a complicated topic, thinking thoroughly about each of these elements and consulting with your insurance agent will provide you with all the information necessary to make an educated decision on coverage. To request an insurance quote, contact Custis Insurance Service at (440) 949-7171. You can also visit them online to find out more about the additional services they offer.

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