Aflac: What Not to Do When Buying a Life Insurance Plan

NEW YORK, March 13, 2023 (Newswire.com) - Aflac: Buying life insurance can be a fairly straightforward process. However, since this is coverage that's going to protect your family after you're gone, there are a few points to keep in mind so that you don't end up with a bad policy or spending more than you need to. Here are four things you shouldn't do when getting a life insurance plan. 

Don't get a policy without doing research 

The marketplace for life insurance products is huge! You can find everything from simple term life policies online to more advanced policies like indexed universal life insurance, which has an investment feature in addition to the death benefit.  

One of the best things a life insurance customer can do is to educate themselves on the options. Take some time to become familiar with how each type of policy works and its potential advantages or disadvantages. 

Although the majority of agents will give you an honest recommendation, it's still in your best interest to do your own due diligence. Not only will this make you a better-informed customer, but you may also learn about insurance products that could help you financially, like permanent policies where you can be allowed to take tax-free loans against the cash value. 

Don't buy from a company you've never heard of 

Even though it's possible to go online and get dozens of quotes for life insurance, does that necessarily mean you should? How do you know any of these companies are legitimate and will be around long enough to pay out a claim when the time comes? 

To ensure financial protection for your loved ones, you're going to want to have complete confidence that the provider will be able to deliver on the death benefit that's been contracted. For that reason, it's important to go with a life insurance company that's well-known and reputable. 

Don't go with the cheapest policy you can find 

When it comes to life insurance, cheaper isn't always better. Again, some online providers may be questionable and try to attract unsuspecting customers with deeply discounted rates. Even if the policy costs a little more from a well-known life insurance company, you'll sleep better at night knowing that you're in the hands of a reputable company. 

At the same time, it's also important to buy life insurance with a long-term mindset. For example, buying a term life policy will initially be much cheaper than a permanent policy. However, this policy will eventually expire, and you might run the risk of not being able to get coverage again if your medical status has declined. In some instances, spending the extra money to get lifelong coverage with a permanent life policy may be the better option. 

Don't wait to apply 

Life insurance premiums are based on many factors, but the main ingredients are the applicant's age and health. So, the longer you wait to buy a policy, the greater the potential that these two variables can work against you.  

The right time to buy life insurance is when you're young and in good health. By doing this, you can lock into the lowest possible premiums. If it's a permanent life policy with cash value, then this can be especially productive because you'll make contributions for a longer period of time. 

The bottom line 

Don't wait to get life insurance. Start by educating yourself on what life insurance products are available, what they offer, and how this could benefit you. Get multiple quotes from reputable companies and instead of picking the cheapest one, make your selection with a long-term mindset. 

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.  

Aflac insurance coverage is underwritten by Aflac. In New York, coverage is underwritten by Aflac New York.  

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Source: Aflac