As a father, it’s vital to ensure that everyone in your family is covered in case of an emergency.
It can be scary and upsetting to imagine a world without you in it, but it’s an unfortunate reality if there ever was a tragic accident. As the father of your children, you want to make sure that you do everything humanly possible to ensure that they are safe. Purchasing a term life insurance policy is one way to do so. In addition, if your family relies on your income to take care of them, a life insurance policy can give them the money they need if you were to pass away. Take a look at these four tips before you decide to quote term life insurance policies. There are plenty of options, and it can get confusing, so it’s crucial to make the right choice.
4 Tips for Fathers Quoting Term Life Insurance Policies
Compare Term and Whole Policies
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Quoting term life insurance policies does not mean that you should rule out whole life insurance policies. Usually, term life policies are the most suitable plans for young families because they are the easiest to understand and are the most affordable. Before you decide on which one to go with, take a look at the definitions of each.
Whole life insurance: This type of insurance provides a person coverage for their entire life. Whole life insurance builds up value the longer you have it, giving it a cash value. The cash value can be invested in or used by the person while they are still alive.
Term life insurance: Term life insurance is much more straightforward because it does not have the cash value aspect. This type of insurance is only purchased for a specific amount of time, ranging anywhere from 5-40 years. Once the term expires, you can buy another policy, switch into a whole life plan, or decide not to buy any more life insurance. Because it does not have the added cash value, it is much cheaper than whole life insurance.
Determine How Much Coverage You Will Need
Before you purchase a policy, you have to choose how much coverage you would like to buy. There are many factors to consider when selecting the amount of coverage to purchase, and it depends on how many people you are supporting, how much money you are making, and more. Here are some questions to ask yourself and your significant other when discussing the possibility of life insurance:
- Do I have a special needs child or someone that I am taking care of who may need protection for their entire life?
- Do I suspect that my family’s needs will change through the years? If so, what kind of changes?
- Do I have a large amount of debt I would like to be paid off in the event of my death?
Speak With an Insurance Agent
When you aren’t writing life insurance policies for a living, you will not understand every detail about them. It’s crucial to speak and consult with a life insurance agent because they will not only help you understand the process, but they will get you the most affordable plan for you and your family. In most cases, it’s best to speak with an independent agent because they are not tied to a single life insurance carrier. They are usually paid by the insurance carriers and do not have a bias so that they can quote and study plans from various companies. This means less research for you and more affordable coverage.
Understand the Types of Term Policies
As mentioned above, term life insurance policies aren’t as complicated as whole life insurance, but there are still several decisions. There are three different term policies, and understanding what they are will assist you in choosing the most suitable plan for your family.
Level-premium: A level-premium term insurance plan is the most common type of term insurance. The policy premiums are the same year after year.
Renewable: As the name implies, this plan allows you to renew the coverage after the plan expires. The policy spells out possible cost increases and best for those who have a short-term need for life insurance.
Decreasing: A decreasing term policy has a death benefit that goes down over time, with the occasional lower premium. This is usually best for people who want to cover a specific debt.
Whether you are a single father or have a significant other, you can feel like providing for your family is mainly up to you. While you may be the breadwinner of the family, it is important to ensure that your family and loved ones will be taken care of in the event of an accident. Fabric is the ultimate place for you to quote term life insurance policies, write up a will, and organize all of your finances. You can receive a life insurance quote in as little as ten minutes, making it easier than ever. Learn more about Fabric and get started today to protect yourself and your family.