10 Tips to get the Best Life and Disability Insurance

Find the Right Life Insurance in 2 Minutes!

Choose Insurance Type:
Enter Your Zip Code:
Do you currently have Auto Insurance? Yes No

February 9th, 2009

Knowing what type of life and disability insurance you’ll need is crucial to choosing what plan you should pick. It’s wise to research several plans and contrast and compare what they cover. Keep in mind whom you will be covering. For instance, if you have young children and a spouse you may need different plan options that will financially fit your needs.

1. Be Familiar With What Your Insurance Plan Covers

The three basic life insurance plans are term life, whole life and universal life. Term life insurance covers death benefits only and tends to be the least expensive. Universal and whole-life insurance vary slightly, but they both include long-term assets. The only downside is that they can be extremely costly. For disability insurance, consider what type of work you do and if it may be more likely to cause disability. Some disability insurances only consider being “disabled” with respect to tasks in your specific occupation only. More extensive, but pricier, coverage provides disability benefits when you cannot perform duties for all occupations.

2.Read Between the Lines

When you’ve decided on a specific plan, don’t consider it finished. Be sure to read over the terms of your policy inside and out to understand any loopholes that might exist. It’s imperative to ask your insurance company questions regarding your policy’s benefits. It’s better to inquire now, than to inquire later just to find out that you are not covered for something you will need.

3. Buying Additional Coverage

Have little doubt in what you’re getting into. When does your coverage begin? When does it end? Are there any factors that would cause your benefits to stop? Everyone’s life is unique, so take a look at additional coverages that you may have passed over. Look at all options that are considered “additional” so you don’t mistake them for something you thought was already covered anyway.

4. Keep in Mind What You’ll Be Able to Afford When Choosing a Coverage Plan

Have financial confidence in the plan you choose. Choose a plan that will cover the issues that are or will pertain to you. Have knowledge of what it will cost you, what can make that price change and if you can afford it.

5. Contrast and Compare; Pros and Cons

When you think you understand exactly what you’ll need, get a general idea of what it’ll cost. Take that number and go to other insurance companies to ask about the same benefits. See if you can save money. Don’t settle under pressure from insurance agents. Remember that they are just salespeople.

6. Do Extra Research

Do more research about the insurance companies that you may be considering. Inquire online about customer experience, conflicts and other important information about the insurance company. Hasty decisions with something this important to you and your family is not wise. Be sure to be considerate of your family needs and your pocketbook.

7. Holding onto Documents

Be sure to keep an arsenal of important insurance documents on hand. The documents may be terms of insurance, benefit information, dates, deadlines and pricing information. Use them as a reference to present any conflicts you may have with your provider. Although you pay them to cover you, please bear in mind that the insurance company’s favorite customer is one that doesn’t have problems that require insurance.

8. What Disability Covers

Your income is your lifeline for practically everything. Disability insurance isn’t for people who are disabled. Disability insurance covers those who become injured, ill, or handicapped. What will you do if you can’t physically or mentally work? This question is hard to answer if you don’t have disability insurance.

9. Death and Burdens

If you are the sole supporter of your children and or other family members, don’t let your death leave them in financial chaos. Insurance will make sure that your family will receive support (death benefits) if you die. Two things are known to be certain: “death and taxes”. When you die, you are still expensive to deal with. Funeral costs, taxes and other financial debt might be passed on to someone else. What if you are in debt and suddenly die? Do you really want to pass on this burden to people you love?

10. How Much Will I Need?

Many factors contribute to how much insurance you’ll need. Make sure to discuss this with knowledgeable family members, friends and insurance agents. Current and future financial obligations will dictate what you need to invest in.