Reader’s Question:

My sister’s buying life insurance very soon and I want to help her in buying the right one. What should we consider when getting life insurance coverage? Any tips that you can share will be much appreciated. Thanks a lot!

Remy

Fort Wayne, IN

Hi Remy! I just recently bought my Indiana life insurance and to make sure that I’m doing the right thing I’ve visited the Indiana Department of Insurance website and found a lot of useful information about purchasing insurance coverage. Let me just share with you what I’ve learned from that website and I’m sure these things can help your sister when she purchase her life insurance coverage.

There are just three things that your sister needs to consider:

First, determine how many are financially dependent on her. This also includes taking into consideration what their major expenses could be and if your sister want to leave them with high taxes or debts to settle on her estate.

Second, there are two main kinds of life insurance – term and permanent. Term insurance means it will pay the beneficiaries once the policy owner dies in a specified period of time. Meanwhile, permanent will last your life time and has also the ability to gain cash value.

Third, know and understand the factors that could affect life insurance rates. Some of these factors are – age, if you purchased your policy when you are younger chances are your insurance rates will be lower; your driving records, the better it is the better your life insurance rates will be; your location; your hobbies, engaging in dangerous hobbies like skydiving could mean higher insurance rates; poor health habits could also give you higher insurance rates, and a lot more.

Those are three basic things that your sister should consider when buying Indiana life insurance. Since you’re helping her, why don’t you try getting life insurance quotes for your sister on this website to give you an idea how much her insurance rates will be. Good luck!