5 Things You Didn’t Know About Life Insurance
Life insurance isn’t exactly a conversation starter. Most people avoid talking about it like they avoid talking about politics or religion. However, it’s an important topic that everyone should be clear on because most people either don’t have a policy in place or have one that doesn’t have the right coverage to suit their needs. To make sure you understand the fundamentals surrounding this topic, and to confirm whether you have the right policy in place, here are 5 things you didn’t know about life insurance.
The Sooner You Purchase The Lower The Premium
Waiting to purchase life insurance until you’re in your 50s will only cost you. The earlier you purchase life insurance, the lower the premium rates will be. Locking in a good rate when you’re young and healthy is a lot easier to do than when you’re older with a few medical conditions placed on your file. So don’t hesitate and get set up when you’re in tip-top shape.
It Factors In More Than Your Age And Health
Life insurance also considers your lifestyle. For instance, if you’re an avid scuba diver or rock climber, your insurance rates may end up higher. Your hobbies, family history, gender, and occupation are just some of the other things that insurance companies may take into consideration when assessing your risk level.
Not All Policy Choices Are Equal
The policy choices you make will also impact the death benefit. For example, a long term policy will be more expensive than a short term policy. The larger the death benefit, the more you will pay for coverage, and permanent life insurance is often more expensive than ‘term’ insurance. Knowing the difference between each and how it will impact the death benefit is vital before making any decisions.
It Can Be Used As An Investment Vehicle
Few people know that you can use life insurance as an investment vehicle. In fact, the cash value in the policy earns interest. You can even take the money out and use it if you need to. Just be sure you understand all the implications that can occur if you do this, not all policies are equal, and there may be tax implications as well.
An Insurance Broker Is On Your Side
Unlike an insurance agent, a broker doesn’t work for one specific insurance company. They can offer a range of products from different providers that are specific to your needs. In fact, an insurance broker works for you and not the agency, which makes a big difference when you’re shopping around for policies and rates.
When you’re ready to talk about life insurance, contact us at Rowat Insurance. Our brokers are here to answer any of your questions and help you make a well-informed decision based on your lifestyle.