Shopping for life insurance can be a deeply personal experience. It is, after all, your family that you want to protect. We asked Robert Bland, chairman and founder of Life Quotes, Inc., a GEICO partner, for five questions to ask about life insurance before making one of the most important purchases of your life. Continue reading to learn life insurance tips and what you should consider asking.
1. Do I have debt or dependents? Who should be my beneficiary?
What would happen to your family without you? Their financial security is one of the first things you need to consider, and income replacement is one of the top reasons why people buy life insurance. “Life insurance is a very effective purchase to care for your loved ones or create an estate.” A life insurance beneficiary is who you select to receive the money from your policy’s death benefit if and when you pass away. Most commonly, this is a spouse or child.
2. How much coverage do I need?
How much life insurance you need can be a tough but crucial question to answer. The industry benchmark is 10 times your annual income, but that can vary depending on your personal circumstances. “How would your family make ends meet if your paychecks stopped coming in? Imagine what amount of money would be needed to replace your income each year for the next 20 to 30 years.”
Consider other outstanding large debts such as your mortgage; you’ll want to add that amount to your coverage as well. “It’s a good idea to have enough life insurance to cover any debts, like your home mortgage, and then add a little extra coverage to the policy that leaves your family a nest egg.”
3. What term should I get?
One way that term life insurance makes the whole process easier and less intimidating is how flexible (and affordable) it is. Term life insurance provides straightforward death benefit protection without any expensive “cash value” or investment component add-ons. “Discuss your general income needs with an agent who will help you calculate the best policy terms and limits within your time frame.” (Get info on Whole Life Insurance here.)
4. What’s my medical history?
You may be fit as a fiddle, but you’ll still need your health records for the initial assessment. “Get all the facts about your health history in order because you will be asked about them.” Don’t be discouraged, though; a standard term life policy will typically cover death by any cause at any time, except for death by suicide within the first two policy years (one year in some states).
5. How do I get the best price?
You can compare multiple quotes on life insurance right away through the GEICO Insurance Agency. “Prices vary significantly, and you can see that on our site in seconds.” When shopping for life insurance, you should look for companies that offer flexible payment options that allow you to pay on a monthly, quarterly, semi-annual, or annual basis, which makes term life insurance even easier to afford.
By Sam Song
Brad Kirby says,
Life insurances are serious and important, getting them right matters a lot. A great blog!
I’m looking for life insurance for me my mom sister nephew and niece and brother but I don’t know we’re to start
Start here: https://www.geico.com/life-insurance/
Norma Athey says,
I just switched to geico, because I felt I was over paying on my car insurance and it’s already 3 Years old. So I spoke to John Lynch and he went over everything that I had from the other company and I got the same coverage for my car, at a lot cheaper price. He was very polite and courteous and patient with my questions and answered everyone. I glad I called the geico office and spoke to him. I’m very comfortable with my decision. He did a great job on my car insurance quote.
Troy Blackburn says,
I wasn’t aware that the typical benchmark for how much life insurance to get was about ten times your annual income. I’ve heard, though, that this number can fluctuate greatly depending on how the economy is looking for the future and inflation. I’m trying to decide on a solid life insurance plan right now, and I’ll be sure to keep these great tips in mind.
Troy Blackburn says,
I love that you shared the tip that the financial security of my family should be the first thing I consider. I’ve heard that there are many different options in plans and that thorough research is the key to success. Are there people that can help you decide what’s going to best for you and your family? I’ll have to consider all this info as I begin deciding on a plan that’ll best for us!
Annie Frances says,
I completely understand how knowing your medical history could help a life insurance company give you the best policy. I am looking for a new life insurance company now because some of my living situations have changed. Price is important to me, but so is the coverage. Thanks for the info!
Lillian Moore says,
I like the suggestion to check your medical history. This could be a significant factor when getting insurance. The company will want to know what possible illnesses or family traits you may have so they know how much you as a client will cost.
John Carston says,
This site has given me a lot of advice for life insurance that I didn’t know about. I’ll have to take this into consideration as I compare rates between providers. Thanks for the detailed life insurance tips.
Nash Rich says,
One thing I’m not sure about dependents is, is does it count for all dependents, or does the number of your dependents determine what your premium will be? If it does, can you just add another kid to it when you have one? I’m pretty new to this kind of stuff, so I don’t know much.
emily bennette says,
This is some really good information to know about if you are looking for life insurance. I like that you talked about knowing how much coverage you need. That way, you won’t be overpaying for a service that you probably won’t need. It might be a good idea to talk to a professional about what type of coverage would be best for you.
Thanks for sharing this and now i am not confused anymore and i can select the right life insurance for me and my family.