Latest News

10 Things to Know About Life Insurance

We understand that completely understanding the ins and outs of a life insurance policy can be difficult. Our agents are ready to walk you through the process. Also, keep these ten things in mind when you go to purchase life insurance. 

  1. Review Your Needs 

    A licensed Farm Bureau agent can help you determine your insurance needs and give you information about policies that are available. 

  2. Decide How Much Coverage You Need

    Ask yourself these questions: “How much of the household income do you provide?” “How will your family pay final expenses and repay debts after your death?”

  3. Assess Your Current Life Insurance Policy

    Don’t cancel your current policy until you’ve received the new one. You have a period that you’re allotted to review your new policy to make sure it’s what you want. You may also be able to change your current policy to get new coverage or benefits. 

  4. Compare Different Policies

    Compare both term insurance and cash value life insurance policies to determine if your needs will be met now and in the future. You also want to make sure that it is affordable. Remember term insurance typically has lower premiums in the early years of the policy but does not build up cash value that you can use in the future. 

  5. Can You Afford the Premium Payments? 

    Can you afford the initial premium? What if it increases later? 

  6. Evaluate the Future of Your Policy 

    You may want to ask your agent for a year-to-year display of values and benefits, so you know how quickly your policy’s cash value with grow. Remember some policies have low cash values early on but build quickly later. 

  7. Understand Renewal Policies 

    Even if your health has changed, you can renew most term insurance policies for one or more terms. Your premium may be higher each time you renew so ask your agent what the premiums will be if you continue to renew the policy. 

  8. Carefully Read Your Policy 

    Ask your agent the following questions. 

    “Do the premiums or benefits differ from year to year?” 

    “How much to the benefits build up in the policy?” 

    “What part of the benefits or premiums are not guaranteed?”

    “What is the effect of interest on money paid and received at different times on the policy?”

    The answers to each of the questions above should be within your policy, but your agent can also assist in answering the questions for you. 

  9. Should You Keep Your Current Policy? 

    It may be costly to replace your current policy. Make sure that you determine the cost difference before you take on a new policy and cancel the older one. 

  10. Review, Review, Review 

We all go through life changes. How will inflation affect your future needs? If your family increases, do you need more insurance coverage? It’s a great idea to review your insurance policy yearly with your agent to make sure that your coverage is adequate. 

 

Content provided by the Georgia Office of Commissioner of Insurance and Safety Fire