You might already know that a good life insurance policy is one of the best ways to protect your family. But what exactly is a “good” life insurance policy? Because there are so many options out there, it’s easy to make a mistake when choosing your provider or plan.
A life insurance policy is an investment, and like any investment you should spend some time on research before making a final decision. Follow these three steps to help ensure that the policy you select will offer the best possible protection for your money.
Step One: Perform a needs analysis. Sometimes people fall into the trap of selecting the first life insurance policy that appears to be a good deal, convenient, or some other deciding factor. But nothing is a good deal if it’s not what you need!
A needs analysis will ask the important questions, to help you determine how much coverage you need and which type of policy is right for you. Take this important step first, and it will help you narrow down your options to the policies that will offer genuine protection for your loved ones.
Step Two: Shop around! Compare policies with several providers. Now that you know the type of policy and amount of coverage you need, should you just pick one and be done with the shopping process? Actually, that’s not a great idea. If you were car shopping, you wouldn’t just purchase the first model that fit your specifications, and you shouldn’t do that with life insurance, either. Each insurance provider uses a different formula for calculating risk, which is also how your premiums are determined. Compare rates with at least three different providers; you might be surprised at how much premiums vary.
Step Three: Continue to reevaluate your needs. Life insurance isn’t something you can purchase one time and then forget it. As your family changes, your life insurance policy should also change to reflect shifting needs. Perform a new needs analysis every two to three years, or after major life changes, and make the appropriate changes to your coverage.
As a federal employee, you’re eligible to take advantage of the Federal Employee’ Group Life Insurance (FEGLI) program, a group term life insurance program that might meet your needs. However, there are varying levels of coverage in which you can enroll, or you might decide that a different life insurance policy better meets your needs. You’re certainly free to choose between FEGLI or another type of life insurance, if you prefer.
Give us a call. We can help you analyze your initial life insurance needs, or upgrade to a new life insurance policy so that you maintain the best protection for your family.Read More