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Newlyweds Should Consider Life Insurance Needs
 (ARA) – All kinds of things about your life change
when you get married. But in the midst of all the wedding planning, don’t
forget about your life insurance.
"If ever there were a time in your life to look at your insurance situation,
it's now," says Byron Udell, founder and CEO of AccuQuote, one of the nation’s
leading life insurance brokerage firms. “Life insurance grows in importance
when you marry, and start a family. If you haven't re-evaluated your coverage
from your single days, now is the best time to do it not only because of your
new set of circumstances, but also because premiums are at their lowest levels
in years!”
If you have life insurance already either through your employer or independent
insurer, you may need to broaden your insurance planning. Ask yourself: Do I
have adequate insurance? What kind of insurance do I need? What's the right
kind of policy given my new set of circumstances?
Newlyweds should keep the following in mind when choosing a life insurance
policy:
1. Match the length of the policy to the need - If you’re planning on having
little ones, it’s best to buy a policy that will keep you covered until they
graduate from college. All too often people leave their families financially
exposed. For the best deal, go for a 20-year or even 30-year guaranteed
level-term policy because they’ll offer the longest protection. And
year-after-year, the rate remains the same even if your health changes.
2. Buy enough coverage - Many experts suggest 10 times your annual net income.
This amount varies depending on such factors as your age and number of
dependents. To find out the amount of life insurance you need, use a needs
calculator, like the one at www.accuquote.com. Only you can really decide what
your family should have.
3. Don’t buy the lowest price, buy the best value - Before selecting the lowest
price, consider the financial strength of the company and the product’s
features including the length of the guarantee period, convertibility rights
and available riders. It’s wiser to spend a little more money to buy a policy
with better features, more flexibility and from a company with superior
financial strength. For company comparisons it’s best to call an independent
brokerage firm, like AccuQuote - (888) 436-7878 - that deals only with
companies that are rated "A" or better by A.M. Best, and knows the ins and outs
of the underwriting guidelines at various companies.
4. Fully convertible policies are best - Convertibility allows you to exchange
your term policy for a permanent plan without having to qualify medically. This
is an important consideration because of the risk that your health will decline
increases as you age.
5. Buy a policy with a guaranteed premium - Don’t assume all level-premium
policies are guaranteed for level for the entire policy period. For example,
some companies offer 20-year level premiums with only a five-year guarantee.
After five years rates can change at the discretion of the insurance company.
6. If you smoke, find a tobacco-friendly company - Whether you smoke
two-packs-a-day or have an occasional cigar or chew, most insurance companies
are going to offer you rates at as much as triple the price they offer
non-tobacco users. It is possible to find deals. The key is finding the right
company. Work with a company that makes it its business to know the different
rules of multiple insurance companies. Only with this broad pulse on the
insurance market is it possible to know which company might offer the most
favorable rates to a given person, based on their individual profile.
7. Avoid the lure of “come-on” rates - To qualify for the lowest premiums, also
known in the industry as preferred plus or “Superman” rates, you must meet
strict health and lifestyle guidelines. Many people can’t. Be realistic about
the rate classification you will qualify for.
“The goal is to find the best company, the best product and best price that are
right for your specific health and lifestyle profile. Talk with an experienced
professional. Don’t expect to wrap things up with a five-minute Internet
search,” says Udell, who is also an attorney, Certified Financial Planner (CFP)
and Chartered Life Underwriter (CLU).
For a free quote, call AccuQuote at (888) 436-7878 or visit www.accuquote.com.
Courtesy of ARA Content
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