Lowdown regarding life insurance coverage

Need help navigating through the complexities of selecting the right life insurance policy? You're not alone.

Nearly six in 10 middle-class households--defined as Americans ages 25-44 with household incomes under $100,000--recognize the need for life insurance protection. However, only 50 percent of those surveyed plan to move forward with a policy.

Life insurance roadblocks? Consumers are heading to the Internet for information, but are left with more questions than answers after looking online. Also, many assume that life insurance is beyond their budget and the lack of easy-to-find information hinders them from securing a policy.

"Buying life insurance is challenging for even the most motivated," says Beth Hirschhorn, senior vice president and chief marketing officer for MetLife, the largest U.S. life insurer. "Of those people who say they will buy life insurance, research shows that more than 80 percent will fail in their attempt."

Click here for 10 simple tips to getting started.

Want a free life insurance consultation? Contact Consumer United's expert at 732-917-4878 or e-mail him at Aaron.Biedrzycki@consumerunited.com for a quote.

Tips to select the right life insurance policy

Choosing a life insurance policy can depend on a number of factors, including your age, health and number of dependents.

Between term and whole life policies, there are a lot of options that can be confusing. A simple online search can yield hundreds of head spinning results and it can be very difficult to understand what type of policy might be best to fit your needs.

Consumer United has compiled a few tips to help make shopping for life insurance a little easier.

1. Become familiar with the differences between term life policies and whole life policies. Term policies cover a designated period of time and the amount of coverage needed often varies depending on anticipated financial obligations such as a mortgage or tuition payments. Whole life policies, on the other hand, are often used to cover end of life expenses and are more likely to be utilized as a financial planning tool.


2. Understand what you're entitled to under the so-called "free look" laws in your state. Free look laws allow you to purchase an annuity or life insurance policy and change your mind within a limited period for a refund. The types of policies covered and the time allowed to reverse a decision vary widely by state, from zero to ten days in some states to sixty days in others. These laws allow for a comprehensive review of the policy before you're legally bound to its terms.


3. Make an informed decision when selecting your life insurance provider. For example, many employers offer life insurance, but the coverage may expire if you leave the company or retire, and that coverage could be hard to replace if you develop medical conditions. It's also very important to understand all of the terms and conditions of your policy, so make sure you trust your provider before you purchase a policy.

Click here to learn more about Consumer United's life insurance product.

Avoid these three life insurance mistakes

Buying a life insurance policy is one of the most important steps you can take to protect your family's financial future. It can also be one of the most confusing tasks.

The following are some mistakes to avoid when buying a life insurance policy:

Mistake No. 1:
Procrastination is by far the most common mistake made by the majority of people. Most assume that it is either too expensive or that they don't need coverage because they are young. Neither situation could be further from the truth.

Term life insurance is especially affordable, with policies starting at under $20 per month. As for age, the best time to purchase a life insurance policy is when you are young and healthy. Not only does it ensure that you will get the best rates possible, but it provides valuable protection for growing families that are not yet financially secure.

Mistake No. 2:
Purchasing the wrong policy is another common error. Life insurance is a complex topic with long-term implications, so it's a good idea to take your time and speak with an insurance agent about all your options. Cost, coverage, duration, tax consequences and other considerations should be addressed for your specific situation. Term, whole life and universal are just a few of the options available, so weigh your options wisely.

Mistake No. 3:
Not purchasing enough insurance can be a problem. It's easy to underestimate the cost of living when initially purchasing a life insurance policy. In addition to replacing an income or paying down mortgage and other debts, it's important to add in an inflation-adjusted cost-of-living increase plus extra expenses likely to be incurred in the event of a loss. Everything from yard care and maintenance to child care and tutoring may need to be supplemented in the event of the death of a spouse. Tally up the total cost--plus inflation--for all the services and support provided by the insured person and then use it as your starting place when obtaining a quote.

Life Insurance help?
Need help navigating through the complexities of selecting the right life insurance policy? Let Consumer United do the work for you. Contact our expert at 617-209-4299 or e-mail him at Aaron.Biedrzycki@consumerunited.com for a quote.