If your employer offers a group policy at a low rate? Many companies offer some form of life insurance, so look there first since it may be your cheapest option. Cheaper doesn’t necessarily mean better, of course; you still need to make sure you’re getting the coverage you need. You can also buy a life insurance policy through an agent or from a company directly. Consumer Reports recommends getting free estimates online at AccuQuote or SelectQuote—these figures can help you as you comparison-shop. As long as you get a policy from a company with a solid rating (check with rating agencies A.M. Best, Fitch or Standard & Poor’s online) at a price you can afford, it doesn’t matter whether you get coverage through your local agent, employer or elsewhere, say experts. If you already have life insurance, it may need an update. You’re likely thinking, “That’s been taken care of—I don’t need to think about it.” But that’s not always the case. If you’ve gotten divorced or remarried, you’ll probably need to change your policy and name a new beneficiary. (Making a change to a term policy is not hard to do: Just contact the insurance provider.) If you’ve purchased a more expensive home since you took out the policy or refinanced in recent years and are carrying a bigger mortgage, you may need a new policy with more coverage. Or, if an aging parent has come to live with you and now depends on your support, you may want a bigger policy to cover his or her needs if you were to die. Again, the idea isn’t to provide a Paris Hilton– like lifestyle for your family, but to cover foreseeable needs (say, if your parent would need help covering nursing home costs once you were gone). Other reasons you might want to update your policy: If one of your children is no longer depending on your income, if you’ve recently downsized or if your savings cushion has grown, maybe it’s time to scale back on the amount of coverage you need. If you’re not sure, consult with a financial planner (Napfa.org is a good source of fee-only planners, i.e., folks who are not affiliated with a product that they’re trying to sell).
Posted on: Mon, 27 Oct 2014 15:39:20 +0000
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