6 Savvy Moves to Get the Most From Your Life Insurance

young couple reviewing their life insurance policy

Many assume life insurance is solely a long-term goal and often set it aside until later in life. But with the right approach, your plan could provide stronger financial protection and greater peace of mind, now and for the future. All you need to do is exercise a bit of strategy and forward thinking to get the most out of a policy over the course of its run.

Invest as Early as Possible

Open a new life insurance policy as soon as you can. Younger, healthier consumers pose the least amount of risk for insurance companies and therefore have access to the lowest rates on the market. Moreover, this is the best time to pump some extra money into your policy at little cost, long before you may have any tangible need for financial protection. If you’re interested in starting a new plan, many companies offer a free look period, during which you can review your policy before committing.

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Know the Strengths of Your Policy

Not all life insurance plans are created equal. In fact, even a single insurance company could offer a wide range of policy types. For instance, term life insurance, which only remains active for a specific length of time, can work as collateral for loans or to provide protection during a particularly expensive period of life. On the other hand, whole life insurance, which provides lifelong coverage and often includes cash value, is a better fit for individuals facing chronic health conditions or who are looking toward their retirement and estate planning.

Consider Converting Your Plan

As life progresses you might find that your initial plan type no longer serves your needs in the most effective way. Term plans make the most sense early on, providing more affordability and accessibility for younger policyholders who may be lacking any long-term vision for their coverage, but as the years go by you might ultimately find that whole life insurance is the better option. Ensure that you have the ability to convert if you choose.

life insurance

Be Willing to Switch up Your Strategy

The world of life insurance offers consumers so many customizations that you may find it prudent to not only convert from one plan to another at some point but also to scale the amount you invest according to your needs. Your income, expenses and assets should evolve over time, and accordingly, your life insurance should reflect this. The aim is to sustain your family’s specific financial situation, for better or worse. To truly receive the highest benefit for your money, you need to know how much to buy and when to shift that amount.

Take Advantage of Policy Riders

So much of life insurance centers on anticipating your family’s needs years or even decades in advance. One of the best ways to prevent an unpleasant (and potentially costly) surprise with regard to your policy is to review the available policy riders that your life insurance company may offer. These are the policy extras and considerations that you can apply to customize your policy to meet your exact specifications. Oftentimes, investment in these can save you tons of money down the line, and they go a long way toward sweetening the protection and benefits of your plan.

Consult Professional Assistance

Reach out to a qualified professional to help you shape your plan. Knowing what you might need later in life is a tricky proposition and online tools can sometimes only take you so far. A seasoned veteran of the industry is perhaps best equipped to help you make an informed decision about your life insurance policy. The moves you make now do have long-standing implications for your family and its finances. So don’t be afraid to reach out for help if you feel overwhelmed with all the decisions that lay before you.

How do you get the most from your life insurance plan? Share your advice in the comments. 

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