Getting life insurance is easier than it has ever been now that you can buy online. You can do your own research instead of relying on an agent to explain your options to you, and you can easily compare prices on policies.
However, there are a few things you should consider while looking at the prices and requirements of those comparison engines.
Long-Term Care Insurance
Estate planning also involves making plans in case you become incapacitated, and when buying life insurance, you should consider picking this up as well. Some of the purposes of life insurance are to ensure that any dependents you have are cared for after your death, to pay for your funeral and other expenses associated with your death, and to help ensure that the value of your estate is not reduced by debts. The best long term care insurance can help with any costs you might incur toward the end of your life, leaving your estate with fewer debts.
Most people are unaware of the potentially huge discrepancies between the costs of some plans. This is not a matter of hundreds of dollars per year but of thousands. A term policy is generally significantly less expensive per month than a whole policy. One thing to keep in mind is that even if you are making a lot of money now and an expensive plan is easy to pay for, this might not always be the case. During a financial crunch, it is not unusual for a person to let a life insurance plan lapse, but this can lead to a series of cascading problems for the person's family. Therefore, cost should be a factor even if it is not particularly important at the time you are buying the policy.
Speed of Payout
Many people think about life insurance is fairly straightforward, with a policy that pays out after a person's death. However, there is a type called a simplified policy that may not pay out for several years. People buy these types of plans because they are often easy to qualify for, not requiring a medical exam. Unfortunately, most people purchase insurance in the first place because the money from it will be needed more or less immediately, not years down the road. It is important to look carefully and make sure any plan found online pays right away if that is important.
Amount of Coverage
Figuring out how much coverage to purchase can be difficult, but there are a few suggested guidelines to help. Some people say the amount should be 10 to 15 times your yearly income, but you can get a more accurate estimate by thinking about what you want it to cover. This may include mortgage payments on the home your family lives in, funeral costs or a regular income for your family for several years after your death. A parent who does not work outside the home may want a plan that would cover the costs of child care and domestic help for the surviving parent.