Life insurance provides valuable peace of mind to your loved ones and a layer of protection against the unexpected. However, insurers offer a dizzying array of options, with policies suited for families in different situations. Asking these questions before buying coverage will ensure you get a policy tailored to your needs.

Smart Questions to Ask Before Buying Life Insurance

1. How Much Coverage Do I Need?

The ideal amount of coverage depends on a variety of factors, including your income, your age, and the number of financial dependents you have. You may choose to leave behind enough to cover the mortgage and other expenses, pay for your children’s medical expenses, or even replace your income indefinitely.

2. Is Term or Permanent Life Insurance Better?

Term life insurance provides coverage for a limited time, which may be ideal if you want to protect your children until they move out of the house. Permanent life insurance, on the other hand, offers an investment component and never expires, although the premiums may be higher.

3. What is the Difference Between the Various Types of Permanent Policies?

Permanent life insurance comes in a variety of forms, most commonly known as whole, universal, and variable policies. While they all offer similar features, they differ in how the funds you pay are invested, so speak to an agent if you’re considering purchasing permanent insurance.

4. How Do I Choose a Beneficiary?

The beneficiary is the individual who receives the death benefit if you pass away, so this decision should be made carefully. Most people leave the funds to their spouse, but you may choose to name your children directly, or even divide the money among several different people.

5. Is My Employer-Provided Life Insurance Enough?

Many employees receive life insurance as a benefit from their employer, but the amount usually won’t be enough to provide for their families. These benefits end when you change employers, while a separate policy from a private insurer provides more long-term protection.

Are you looking to buy life insurance? Since 1979, Imperial Agency has provided customized insurance solutions to residents throughout Bergen County, NJ. They work with a wide range of insurers, and offer high-quality products perfectly suited to your needs. Their highly trained agents are committed to helping you choose the best coverage available. Visit their website to learn more about their life insurance and other policies, or call (973) 546-9567 to request a quote.