Buying life insurance may not be the most exciting item to shop for on your list this year, but the unexpected can happen at any time. That’s why it’s important to be prepared. Consider purchasing life insurance coverage (or more of it). The following tips can help make the shopping process easier and ensure you purchase the best coverage for your needs. And with September being Life Insurance Awareness Month, there’s no better time to evaluate your needs.
Determine how much you need
Figure out who depends on you for financial support: spouse, children, parents, etc. and how much money it will take to cover all your debt and their expenses until they reach retirement (spouse) or are out on their own (children).
Choose the right type
There are two basic types of life insurance: term and permanent “cash-value.” Term insurance provides coverage for a lump sum death benefit amount for a specified period of time. It’s usually simpler and less expensive. Permanent insurance provides coverage over a lifetime and offers an investment or savings vehicle.
Buy from a financially strong insurance company
Make sure the insurance company you choose is financially secure to pay claims and meet debts. There are several national rating agencies that measure the stability of insurance companies: A.M. Best, Standard & Poor’s, and Moody’s. Generally an “A” rating or higher is ideal.
Compare your options
Once you decide which type is right for you, compare plans, benefits, rates and financial ratings of each company to find the best value for you.
Don’t forget about it next year
Buying life insurance isn’t a one-time only purchase. You should review your needs on an annual basis to make sure the amount you have keeps up with your lifestyle. Many changes—including job promotions, getting married, having children, buying a home and other events—may mean you need more coverage.
Take the time now to review your life insurance coverage.
The Military Officers Association of America (MOAA) is the nation’s largest and most influential association of military officers. MOAA’s Leader Group Term Life Insurance Plan helps provide members with the peace of mind that comes with complete and affordable term life insurance coverage. Benefit amounts up to $1,000,000 (depending on age) with no military or aviation exclusions. If you are an officer, to learn more information about MOAA’s Leader Group Term Life Insurance Plan visit www.moaainsurance.com or call 1-800-247-2192.