When I’m long gone, I expect there to be a bronze bust of me in a variety of urban greenspaces accompanied by a plaque explaining the significance of my societal contributions. But if head statues of yourself are not your thing, good news, there is a great alternative way to be remembered; especially by your loved ones. Life insurance is surely not everyone’s favourite topic, and certainly not the most entertaining, but is a quintessential part to responsible financial, tax, and legacy planning. As a financial advisor, but more importantly, a business owner and parent, I’ll settle for a bust-less remembrance if I could guarantee that my family would be well taken care of when the time comes for me to meet my maker. Here are 3 important tips on how to win at the game of life insurance.
1.Having the right amount of insurance
To quote pre-Socratic Greek philosopher Heraclitus, “change is the only constant in life”. As there is a great deal of truth to that statement we can assume that your financial needs now, will not be the same 10, 20, or 30 years from now. The right face amount of insurance must accurately reflect the economic value of your life. Better to have a little more than not enough. As insurance costs get more expensive with age, buying the right amount the first time is going to save you much more in the long run.
2.Quotes are just numbers floating around in the air
Quote are nothing more than guesses about what your rate could be. The rates are only determined in full after underwriting takes place. Often times they are accurate, but your premiums could go up or down depending on your health. If you are a diabetic smoker with a family history of heart disease and an agent offers you preferred rates, tell him or her NO THANK YOU.
3.The policy cannot expire before you do
10 year term insurance might be a cheap option but may not be enough for your needs. Look at longer terms or permanent insurance so that it is in effect when you die. Remember, with life insurance you can leave anytime you want but your insurance company cannot. There are way too many of us that let our policy expire before we die for a whole raff of reasons, this is what insurance companies bank on. Don’t be just another statistic.
Bonus: Return of Premium plans
They cost more but they do more. Return of premiums means that if you don’t die by the end of your policy you receive 100% of the premiums your paid into it.
There you have it folks, now we know that money cannot replace you to your family or your famous karaoke night moxie, but it sure can help with the after death burdens. Go forth and contact your insurance advisor today but this time be confident that you are equipped with the proper tools to succeed.