By : Allen Grove
Everyone wants to take precautions to ensure their loved ones are properly taken care of when they’re gone. Setting up a life insurance policy is one of the best ways to ensure that if something tragic happens to you, your family will not be completely left to fend for themselves. The process of setting up the policy is not too complicated but there are certain factors that are absolutely essential to address. Here are the most important items to take care of to ensure your insurance policy will be carried out to your liking if the worst should happen:
1. Gather a Detailed Health History Of Yourself and Your Family
-Obtain as thorough a medical history as you can about both you and your family to ensure that the company you go through is aware of every possible health risk. If you leave even the slightest thing out, such as a possible hereditary disease your father had, and you die from this same disease the insurance provider could use the fact that you did not have a sufficient medical history to cover the policy.
2. Set Up Your Policy When You Are as Young and Healthy as Possible
The premium you’ll pay is based on the current medical exam the insurance company sends to evaluate you, along with your age, medical history, and family medical history. Do not fear if you are older or have a pre-existing condition, medical advances make more and more conditions manageable every year. Talk to your broker and specifically ask them to find a company that offers affordable rates for your condition.
3. Only Take Out A Policy That is Convertible
Having a conversion feature in your policy allows you to trade in your term policy for a permanent one at decent rates and without having to go through another medical exam. Think of it as locking in your health status in case you become afflicted with a condition that might be considered uninsurable later on.
4. Don’t Cut Quality With Costs
If the policy you desire is a little out of your price range, ask for one with a shorter term. Yes, you will have to remember to renew the policy when it expires but this way you are getting the best coverage possible at a much more manageable price. Just make sure the policy is convertible, otherwise at the end of the term you are subject to a reexamination by medical professionals and more vulnerable to higher rates.
5. Read Over Your Policy Carefully and Review it Every Couple Years
Make sure you know if your benefits or premiums change in at any time during the term of your policy. Know which benefits are guaranteed and which are not. Review your policy every few years, especially if your family grows. Another important thing to consider when setting up a policy is inflation. Make sure that in 20 or 30 years the amount of money that your policy covers will be sufficient enough to take care of your loved ones.
Allen Grove is a passionate writer and former Assisted Living caregiver. He enjoys helping the elderly ensure their loved ones are taken care of when they are gone with his writing for Atlanta Insurance Agents with Nationwide.