Sherrie Littlejohn: Hi! I am Sherrie Littlejohn with Wells Fargo & Company. Today, we are talking about how to purchase a life insurance policy that's right for you. Finding the right life insurance can be easy and help you take steps to secure your family's financial future. No amount of money can make up for the loss of a loved one. However, having a properly designed life insurance policy in-force at the time of death can allow the family to focus on emotional healing without having to worry about financial issues. As with any other type of insurance, it's important to review your life insurance needs periodically.
Term Life Insurance coverage can not be canceled as long as premiums are paid according to policy specifications. You should get quotes from several companies and make sure you are only considering highly rated insurance providers. Most insurance companies have financial strength ratings from independent organizations such as A.
M Best Company, Standard & Poor's and Moody's Investor Services. Life insurance pays a predetermined amount of money to the beneficiaries listed when the policyholder dies. The funds are usually earmarked for specific purposes such as living expenses, debt reduction and payment of medical costs or final expenses.
Term Life Insurance is the least expensive type of policy to purchase. It can provide up to $5 million or more of coverage. Term Life Insurance pays beneficiaries a specific amount of money if the policyholder dies while the policy is in-force. You choose for a variety of flexible plans based on your specific life insurance coverage needs. When considering purchasing this type of Term Life Insurance, remember that a medical exam is necessary. Will my premium go up every year? Your premiums are guaranteed not to go up during the specified term as long as you pay your Term Life Insurance premiums.