Having life insurance comes with a list of benefits, from supplementing lost income to providing stability for your children’s financial future. Before purchasing a policy, there are a few points to consider to ensure you have the right policy for you and your family. Below are the do’s and don’ts to remember.

Do:

Explore your options.

There are many insurance companies with various levels of coverage and premium options, and it’s vital to shop around when making a policy decision. Certain policies are more flexible, especially if you decide to change your coverage down the line. You may be able to save money on policies if you take the time to research your options.

Decide your needs.

When deciding on a policy, you need to figure out your intentions. You’ll likely be choosing between whole or term life insurance. Whole life insurance policies, also known as permanent life insurance, covers you until you die. It also comes with a cash fund you can borrow against in case of emergencies or use later in life.

Term insurance covers you for a specific period of time. Some people may choose this policy if they’re worried about leaving behind debt their family members would need to cover. For example, you might purchase coverage to coincide with the length of your mortgage. Deciding what your policy will be used for will help you narrow down which one to choose.

Read the details.

Always read the terms and conditions in the application, so you know you’re receiving the expected benefits and protection. Look out for exceptions, terms, expiration dates, and anything else that could affect coverage and payouts.

Don’t:

Ignore riders.

Riders help you customize your policy. Examples could include premium returns when a term policy ends or a Waiver of Premium if long term disability occurs. Take the time to read through all the choices to ensure you’re getting the most coverage for your payments.

Give false information.

The details you put on your life insurance application must be as accurate as possible. False information can lead to claim rejection, and you may not receive the benefits you’re expecting. Any premiums paid will not be refunded either.

Ignore payment options.

Life insurance can be paid monthly, quarterly, or annually. You can also choose automatic payments, so you never miss an installment. Ask your insurance agent for options and set up what fits your situation and your budget.

If you are considering purchasing a life insurance policy, trust Quinten White at State Farm® Insurance to help you make the best choice. The insurance agent is located in Omaha, NE, and will help you narrow down the right policy for your needs and budget. He offers personalized attention and affordable rates, and can also assist with your auto and homeowners policies. To discuss insurance quotes, call (402) 885-8569. You can also request a quote online.