Mark Glendon

Steps on How to Sign Up for Life Insurance

Life insurance may not be the most exciting thing to think about, but if you have a family that you want to support after you're gone, life insurance is a must. Most life insurance policies provide a cash benefit to your dependents after you die, and some whole-life policies also build value and may serve as an investment for the future.

If you've never considered signing up for life insurance before, below are some simple steps to take:

Determine Your Beneficiaries

The beneficiary of a life insurance policy is the person or entity that will be able to claim life insurance benefits in the event of your passing. To claim life insurance benefits, a beneficiary has to be listed on your policy, meaning a verbal promise from you to a loved one will not suffice to ensure your loved one receives funds after you die.

You can have multiple beneficiaries on a life insurance policy, and your policy will list how benefits are to be split. You can designate a certain percentage to one beneficiary while designating a different percentage to another beneficiary.

Term Life or Whole Life?

You also want to think about whether you want to purchase term life insurance or whole life insurance. A term policy provides coverage for a specified period of time. During this time, your policy rate will not change, but your benefits run out at the end of the term. You must renew your policy at the end of the term according to whatever price you are quoted at that time.

Whole life is generally more expensive, but it provides cash value. When you pay into a whole life policy, you may be able to take out a loan against the policy in the future, but you don't need to pay it back since it's your money. The value is simply subtracted from what you have paid in, and this will affect what is paid out when you die.

Work With an Agent

A licensed life insurance agent is someone who can sell you a policy. These professionals are usually employed by life insurance companies, but you can also work with independent insurance agents who can shop for policies from different providers. If you work with an agent who is employed by a life insurance provider, you will likely only be offered plans from that provider, but an independent insurance broker may be able to supply you with expanded options.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at estate planning tips blog.