Life Insurance: 3 Things You Must Know

If you have anyone in your life that depends on your income, you need a good life insurance plan to provide for your loved ones should you meet an untimely demise. Even if you don't have any dependents, a modest plan can ensure that your family doesn't have to go into debt to cover your funeral expenses. Put simply, having a policy is the responsible thing to do and it can prevent the people you love from being needlessly burdened by your death, all the while grieving the loss. Before you purchase a policy, however, there are three things you must know.

Shop Around

If you find yourself staring down the barrel of a life insurance salesman's pitch, it can be difficult to think of reasons to decline. If he's any good at his job, he's designed it to be this way. But while everything he's saying may make a lot of sense, there's one thing he won't tell you: you could be getting a better deal from another company. Whether you can or you can't, though, you won't know unless you do some rate comparisons. And that is wholly within your right as someone shopping for coverage. With as much information as is available online today, you may be able to get a general sense of rates without ever speaking to a representative.

Don't Wait

Younger Americans often figure they'll simply wait until later to buy a life insurance plan. While it's perfectly understandable to come at the concept with this mindset, it can be a mistake. A young man in his 20s is going to have a much easier time finding good rates than someone in their 40s or 50s. Putting together these policies is a very mathematical, statistical process. Quite simply, the higher your risk of death (and this isn't necessarily your risk, in particular, but the risk of people in your demographic), the higher your premium is going to be. If you wait too long, you may find it difficult to get a company to insure you at all.

Healthy is Good

Age isn't the only thing that matters to a life insurance company. Your line of work, your behavioral risks, and your health will all play a major role in determining what kinds of rates you will qualify for. The good news is that, in many cases, you can improve your own rates by making some lifestyle changes. Simply putting down the cigarettes can make a dramatic difference in the kinds of coverage you can qualify for and the rates you will be offered.