Tips To Finding Better Life Insurance

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(KTVI) - Life insurance used to be one of those financial products most adults invested in, but not anymore.

Matt Allgeyer, a financial planner with Wamhoff Financial Planning and Accounting, talked with Elliot about choosing the best life insurance.

1.    Determine what type of life insurance is best for your situation:

  • Evaluate how long you will need it, and identify its purpose.
  • Term and Whole Life are the two most common types. They serve specific and important purposes.
  • Term is a smaller, short-term premium, and covers a certain period.
  • Whole Life is normally a long-term, higher premium policy and lasts one`s entire lifetime.

2.    Your company provided life insurance is probably not enough

  • Though very inexpensive, it is rarely portable, so in a volatile job market, it is important to have personally owned life insurance that stays with you regardless of where you work.
  • If you leave your job, voluntarily or involuntarily, you don`t leave yourself without coverage.

3.    Critical decisions about life insurance - when, how much, and where.

  • Many people decide to buy life insurance after a life changing event - marriage, birth or adoption, divorce, or the purchase of a new home.
  • Ask yourself: would anyone be financially devastated if you died prematurely.
  • The younger you are when you buy life insurance, the lower the premiums as age and health are factors.
  • How much do you need? Most experts suggest three times your income plus debt.
  • Because buying life insurance can be an emotional decision, it`s good to get the advice of a financial advisor to help you in your overall planning and give you a range of options.

4.    Diversify!

  • As with your investments, it`s a good idea to diversify your life insurance by purchasing varying amounts of both types - term and whole life.
  • Diversification in this manner will help you cover the risks for today while you continue to plan for tomorrow.