According to the study by Global Atlantic Financial Group, 43% of Americans have no life insurance. The same poll shows that two-thirds of Americans think about their own death due to the coronavirus pandemic, and only 33% believe they have enough life insurance or other assets to protect their families.
The following is To Do List that will help every person understand he is getting the most out of his life insurance policy.
1. Check your policy
Purchase of a life insurance policy is difficult today. Besides, some companies have increased the cost of their products during the pandemic, so it is very important to pay for your life insurance policy on time.
2. Decide if you need more coverage
According to Insure, half of Americans with life insurance are underinsured; it means that death benefit does not cover expenses such as mortgages, college education for children.
If there is a need to increase the death benefit, you will have to go through an underwriting process, which includes a health questionnaire.
3. Combination of term and permanent life insurance
Term life insurance is the most reasonable in terms of cost, but permanent life insurance is more flexible in terms of changes related to events such as birth or marriage.
You need to consult your insurance agent or financial planner on what combination is most appropriate for your budget.
Life insurance term is a specific period of time of 5, 10, 20 or 30 years. After your policy expires, you should reapply for insurance. Even if you are in good health, life insurance gets more expensive with age.
If your finances have been under stress in 2020, start 2021 from consultation with a financial planner to see what you can do to recover your savings.
A financial planner is not just for affluent people. The job of a financial planner is to assess the current situation and develop a financial plan.
Life insurance, especially permanent life insurance, can be a wealth enhancement instrument. Start with your bank; find out if it offers financial advice. Contact your life insurance agent to learn if they have financial planning that goes beyond term life insurance.
Photos are from open sources.