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How to Be Confident When Choosing Life Insurance Coverage

4 min read

Choosing life insurance should be a positive experience. Here’s how to make the right decision.

You get an inspection before you buy a home. When you’re in the market for a new car, you read reviews and shop around.

The point is, you build confidence by narrowing choices and feeling informed. It’s the same with buying life insurance. The decision gets a lot easier when you have the facts you need.

Read on to learn how to be confident when choosing life insurance coverage.

Choosing Life Insurance: What You Need to Know

How Life Insurance Works

Here’s how life insurance works:

• You apply for coverage.
• You take a quick medical exam depending on what plan you choose.
• You pay the life insurance company for coverage if you’re approved. Your payment is also known as a premium.
• You name a beneficiary or beneficiaries.
• The beneficiaries receive a payment (also known as a benefit) after you die.
• The benefit can be used to pay bills, car payments, educational expenses, and more. It's a good way to keep your business going after you're gone, too.

The three most common types of life insurance are whole life insurance, term life insurance, and universal life insurance.

Whole Life Insurance

When you buy a whole life policy, your premium remains steady. The policy builds cash value, you get a guaranteed death benefit, and the policy remains in effect for your lifetime.

Term Life Insurance

A term life policy offers coverage for a certain period—usually between 10 and 30 years. While term life policies don’t build cash value, they help replace your income in the event of your death.

If you like simple, affordable coverage, term life insurance is for you.

Universal Life Insurance

A universal life policy offers guaranteed benefits and cash accumulation. It also gives you flexible payments and benefit options.

If you’re a business owner, universal life offers executive benefits to employees, cash value access to supplement income planning in later years, and tax-free funds for succession planning (consult your tax advisor to see if you qualify).

What’s Next?

You know about the three main types of life insurance now. But buying life insurance is not just about finding the right policy.

Your coverage amount will depend on a lot of factors. Your local insurance agent can help you find the right amount of coverage to keep your family or business going after you’re gone.

You also need to know which life insurance company to choose. There are hundreds of them out there!

As you search for your plan, here’s what to look for in a life insurance company.

What to Look For in a Life Insurance Company

Choose a Company That Meets Their Financial Obligations

You want an insurance company that delivers on their payouts. A.M. Best is a great source for checking the financial health of an insurance company.

Bonus: Pekin Life Insurance Company is rated A- (Excellent)!

Don’t Settle for Average Customer Service

Most people don’t think much about life insurance after they buy it. But when you pass away, your family or your business will need to contact your insurance company.

That’s a really tough time to make a call or send a message. You want a customer service staff who handles requests with care, understanding, and timeliness.

They Offer Flexible Policies

A life insurance policy should offer a wide range of options to meet your needs. Pekin Life Insurance Company offers policy enhancements to help you get the most out of your coverage.

As an added bonus, identity fraud protection services are included at no additional charge with all Pekin Life Insurance Company policies!

Choosing life insurance is a big commitment. We’re here to make it as easy as possible for you to get the coverage you need.

Contact your local, licensed Pekin Insurance agent to find the right plan for you!