Insurance protects your family, your home, and the other assets you value most, so it is important to be a savvy shopper and select the right types and amounts of coverage. To help you do that, Brent Layton - Farmers Insurance Group in Tremonton, UT, offers the brief tutorial below. The following information will help you understand complicated insurance topics so you can choose the right policies.
How to Be a Savvy Insurance Shopper
1. Understand Whole Life vs. Term Life Insurance
When buying life insurance, you must understand the different types of policies. Term policies cover you for a set term of years, during which your beneficiaries receive a payment if you pass away. After the term is up, the policy expires, and you must renew it if you wish to continue coverage. It is relatively inexpensive and easy to get. Whole life insurance, on the other hand, lasts as long as you keep making payments, and includes an investment component so you can accumulate wealth for retirement. It costs more, but it offers longstanding benefits.
2. Work Out Your Goals
With any type of coverage, you should understand your goals. How much income will your dependents need to live comfortably without you there to provide for them? Do you need to pay off debt? Do you wish to provide for your children's future education? Understanding your family goals will help you choose the right amount of coverage. You should apply a similar mindset to selecting car, home, and health insurance, considering which features you need the most.
3. Pay Attention to the Risks
When you're buying a policy, you cannot prepare for every possible contingency. You have to understand the risks and address those that apply to you. For instance, most homeowners insurance policies exclude flood and earthquake damage, but you can purchase an endorsement to cover those hazards for an additional amount. If you live in a floodplain, paying more for flood coverage makes sense, but it may not be a good investment for dryer areas. Likewise, if you're buying a policy on a 20-year-old vehicle, you may only need liability, but for a brand-new car, collision and comprehensive coverage are essential.
The best way to be a savvy insurance shopper is to choose an agent that will help you define your goals and narrow your options. To do that, contact Brent Layton - Farmers Insurance Group in Tremonton. He has more than 25 years of industry experience, and can help you make the best choices. Visit his website or call (435) 257-3829 to request a quote.