Shopping for life insurance may seem like a daunting task, but it doesn’t have to be. In fact, if you know some basics about life insurance, you can make an educated decision that will cover you and your family in case of death. Here are some things you should know about life insurance Harrisburg PA policies when you start shopping around.
Two Types of Life Insurance
One of the first decisions you will need to make when you begin your search for life insurance is deciding between term life insurance and whole life insurance policies. With a term life insurance policy, you generally pay on the policy for a given period of time, such as 20 years. If you pass away during that 20 years, your beneficiary is paid the full amount of the policy. However, if you pass away after the 20 years is over, there is no payout to beneficiaries. This type of policy is designed for people who will have sizable assets after the policy period is over. With a whole life policy, the insurance company invests your money with a normal life insurance policy and you pay on it for life in most cases. However, you can often withdraw the full amount or partial amount of money when you want to.
Buy When You’re Young
The older you get, the more you will pay for your premiums each month. That’s why it’s important to start shopping for life insurance while you are young and healthy. It’s never too early to start thinking about your dependents – so start shopping for a good policy right away.
Be Honest
When filling out an application with a life insurance Harrisburg PA agent, you should always be honest. There will be questions about your medical history, your current lifestyle and much more. The worst thing you can do is lie or be less than honest about the truth when answering those questions. It might mean lower premiums for you, but first of all its wrong to do and secondly, the insurance company could cancel your policy without notice if they found out you were dishonest with the questions.
Premium Payments
Before you decide on a policy, you should know if you can afford the premium payments. Many people buy life insurance policies and decide they can no longer afford the payments so they cancel the policy in a few months. You may not be eligible to get those payments back depending on the type of policy you purchased. Don’t waste your money by purchasing a policy you can’t afford. Be more realistic and get the best insurance quote Harrisburg PA and choose one that fits within your budget.
