Enjoying warm summer nights spent with family can make it feel like those moments will last forever. But as we all know, that isn’t the case. The average Floridian lives 77.5 years, and many people leave behind loved ones who either depend on them for their income or may struggle without the departed once they’re gone. Life insurance is a must for those who want to take care of their families both in life and after. But choosing the right life insurance policy is a challenge. With these tips, you’ll have everything you need to know about how to choose life insurance in Florida.
Tip 1 – Multiple Quotes Are a Must
Never go with the first quote you receive from the first life insurance company to which you speak. As obvious as that may sound, it’s a crucial tip because many people want to get their policies in place quickly but neglect to take the time to ensure they’re getting the best deal.
Getting multiple quotes offers several benefits. The obvious one is that you get to see the prices different insurers offer. That collection of prices gives you an average, which you can use to either eliminate or negotiate companies that charge more than the average.
Speaking of negotiation, having other quotes in your back pocket means you have some ammunition you can use when you’re discussing possible rates. Finally, given that no two life insurance quotes are equal, collecting multiple quotes means you have quotes offering different levels of coverage, again making it easier to choose the right one.
Tip 2 – Take Advantage of the 10-Day “Free Look” Law
Let’s say you’ve just jumped straight into signing a life insurance policy, and you’re having second thoughts. That’s okay. Under Florida law, you have 10 days to decide to cancel the policy at no cost. Assuming you cancel, your life insurance provider has to refund any premiums you paid, along with any fees it charged for creating and starting the policy.
Better yet, you’re still covered for the first 10 days. If you pass away, your insurer has to pay the full benefit, even if you were in the process of canceling under the “Free Look” rule. Take advantage of this if you’ve rushed into a policy only to find one that’s better suited to your needs.
Tip 3 – Know Your Current Financial Situation
Life insurance policies are more flexible than you may think.
Beyond the obvious death benefit, you can tack on policies for permanent and traumatic injury or insure yourself for a higher amount than quoted to provide better care for your family. The issue is that these additional benefits bump up the amount of your premiums. As a general rule, the more extensive your coverage, both in terms of benefits and the amount paid out, the higher your premiums.
So, you have to understand exactly what you need to cover in the event of your passing.
Work with a financial advisor to assess your current situation. Together, think about the things that’ll require payment after you’re gone – your mortgage, children’s education, and any other costs your family may not be able to deal with alone. Make those expenses the crux of your policy and select insurance that covers all of them. That approach ensures you get a comprehensive policy that doesn’t empty your bank account whenever you have to pay a premium.
Tip 4 – Choose Between Permanent or Term
There are typically two types of life insurance policies – permanent and term.
Permanent is exactly what it sounds like. You get a policy that lasts for as long as you live, with a benefit that’s paid out as long as you’re still paying premiums upon your passing. These policies often include a savings element. Some allow you to borrow against accumulated savings if needed, in addition to allowing you to use those savings to continue paying your premiums if you cannot do so.
Term periods have a deadline. In other words, you pay into the policy for a set number of years to cover a specific need. Taking care of children is the best example. You could set up a term life insurance policy for 20 years to ensure there’s money left behind if you die before your children reach adulthood. Some have a “convertible” element, allowing you to switch to a permanent policy if the need arises.
Ask yourself the key question: Why do I need my life insurance policy?
You’ll hopefully have answers ready to go from assessing your current financial situation. Use them to determine the type of policy that suits you.
Tip 5 – Check the Insurer’s Background
There are many companies offering life insurance in Florida, with the Office of Program Policy Analysis and Government Accountability (OPPAGA) having regulatory agreements with 27 of them. Don’t let that fact fool you into thinking that all policy providers are equal. They have their own financial ratings, guidelines, small print, and customer service qualities.
A review is in order to determine which is the best choice for you.
Start with financial strength. Check the policy provider’s financial strength rating with an independent rating agency to ensure they actually have enough money to pay out should you pass away. Of course, read every contract sent to you carefully before signing, paying attention to the small print to catch anything that wasn’t disclosed during negotiations. And finally, check customer reviews. Other policyholders give you a much more honest assessment of what the insurer offers than the insurer itself.
Take Your Time to Choose the Best Life Insurance Policy
Time is on your side when choosing life insurance. Remember that when choosing your policy, especially if a provider tries to pressure you into signing on the dotted line. It’s about choosing the best policy for you and your family – not signing because a salesperson keeps nagging you.
Review every policy carefully. Check the insurer’s background. And take advantage of Florida’s 10-day “Free Look” laws if you feel like you’ve rushed into a policy that doesn’t serve your needs.