Actuaries work for insurance companies and figure out how much a life insurance policy will cost. They use tables of deaths and other statistical data to figure out the real rates. Most people who buy insurance don't know how life insurance is rated, but there are a lot of things you can think about before you buy. Planning is needed before buying life insurance so that it is effective and meaningful. A lot of people buy life insurance that...
Actuaries work for insurance companies and figure out how much a life insurance policy will cost. They use tables of deaths and other statistical data to figure out the real rates. Most people who buy insurance don't know how life insurance is rated, but there are a lot of things you can think about before you buy. Planning is needed before buying life insurance so that it is effective and meaningful. A lot of people buy life insurance, but it ends up being useless because the need wasn't clear from the start. This can lead to more purchases and take away the benefit of having a policy. Permanent life insurance builds up a cash value over time, so sometimes it's not a good idea to cash out your policy and start over.
Things to think about
Why is it being done? Before you buy life insurance, this is the most important question you will ever have to answer. You need to know why you're getting life insurance, or you might let it expire when your budget needs a boost. There are many reasons to buy life insurance, so you should do some kind of needs analysis to make sure you are happy with the amount and type of life insurance you buy.
What kind of life insurance do you have? Once you know what you need, you should set aside a certain amount of money for life insurance. This is important because it will help you decide how much permanent or term life insurance to buy.
What type of service? Some people want to buy life insurance from an insurance agent because they want the agent to take care of the policy and keep them up to date on what they might need in the future. More and more people don't want an agent and would rather do business over the phone or on the internet.