Five Things to Know Before Buying Life Insurance

Below are five things that are important to know when looking into buying a life insurance policy:

1.Many benefits
Most people see the primary benefit of having life insurance as a guaranteed death benefit paid to their beneficiary, however, there are other benefits to think about:

• Cash value interest or earnings accumulate over time.
• Life insurance proceeds do not go through the probate process at the time of your death.
• Life insurance death benefits are not public record.
  
  

2. Premiums Differ from Company to Company

There are hundreds of whole life insurance companies, there are plenty of ways to get a quote and see what is affordable for you. Never assume that all life insurance companies have the same premium structure. This will give you a better understanding as to how much each provider charges for the type of coverage you are interested in. 

3. Your Health and Age are Important
Usually when looking for whole life insurance you are most interested in taking care of two things:

• Obtaining a policy at the cheapest possible price.
• Securing a policy with the highest possible death benefit based on your budget.

The younger and healthier you are, the less you will pay for coverage. The best way to save on whole life insurance is to purchase it when you are young and healthy.

4. Some Companies are Rated Higher than Others
When looking at different companies to purchase whole life insurance, look at their ratings. After researching, you will find that some companies are rated high when compared to the industry average while others are well off the pace. It goes without saying, that the highest-rated companies are those you should and can put your trust in.

5. You Can Earn Dividends
The longer you keep your life insurance, the more you can collect in terms of dividends. There are many ways to use whole life insurance dividends, such as:

• Take dividends in cash.
• Leave the dividends alone to accumulate interest.
• Use the dividends to purchase additional insurance.

Before making this decision check with your insurance company to discuss the pros and cons of these options. The last thing you want to do is do anything with your dividends until you fully understand the impact it will have on you and your policy.
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To discuss more about Whole Life Insurance contact one of our Trout Insurance  agents today!