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A more precise way to look at Life Insurance

COVU Agency Tips Insurance Insurance Advice Life Insurance Clients Blog
We sometimes wonder about the way we can secure our loved ones when we are no longer around. You should always think about the future. There is a lot of pain in losing someone you love. Why would you want to give them more financial problems?
Life insurance is one of the most ingenious reasons to invest your money. Most people don’t consider doing this young, but we believe it’s the best time. Your life insurance can be helpful in so many ways.
Think of it as a savings account that you will someday give to your loved ones, and best of all, tax-free! Life Insurance has various policies, so you have to check very clearly and thoughtfully about which is best for you and your financial situation. We know this is a big decision, and like any big decision is better to check before doing it.
Here are five essential tips COVU gives you to shop for life insurance.

  1. Check your insurance essentials.

Not everybody has the exact needs. First, you have to sit down and think if this insurance is for your immediate family (children, husband, wife, partner), extended family (parents, siblings, godchildren), friends, own business, current debt, etc. In this part, you can also choose if you want multiple beneficiaries, which is the most convenient option in several cases. Once you have this clear, you can go on with the various options you can get.

2. What coverage do you expect to give

This decision is difficult since we always love to give the best to our loved ones. But you have to be realistic and get into something comfortable for yourself. Before purchasing a life insurance policy, ensure you can handle the premium payments. That’s why at COVU we always recommend checking first… Can I afford the initial premium? If the premium increases later, will I still be able to afford it? Also, multiplying your annual income by the number of years left before your retirement benefits is a good tip to measure coverage.
The most used way is to add up the expenses you think your family will incur after your death, such as school bills, mortgage, and house costs. You can give yourself an idea of the amount of coverage you would need to secure your loved ones.

3. Type of life insurance

There are two basic types of life insurance: term insurance and permanent cash value insurance. Term insurance generally has lower premiums in the early years but does not build up cash values. Permanent life insurance may be one of several types: whole, universal, and variable life.
So as you can see, you have options for your life insurance. Keeping this in mind, you can move around your ideas and requirements. Don’t rush for something you don’t know.

4. Know the wording

Understanding insurance terms can be a real pickle; this tip is technical but extremely important. We all know that contracts have complex wordings, so to ensure that you are getting what you really want, we recommend reading and comprehending your policy's wording. With terms like "premium," "dividend," "beneficiary," and so on, understanding how life insurance works can be confusing. At COVU we take you by the hand and help you understand this whole process. We have included a glossary of insurance terms to help you understand this process. So you can be comfortable in every step of the way.

5. Choose an insurance company you can rely on

You can have many options in choosing an insurance company, but just remember that an insurance policy is only as good as the company that backs it, so make sure you choose a company you can rely on to be around for as long as you'll need your coverage.
Also, keep in mind that it is highly prudent and financially strong to ensure that its policyholders' claims can be paid.