During the early stages of building your business, it’s vital to offer your family a sense of stability and security. Your life insurance policy is an important building block in your family’s security net; it would protect your family against the loss of your income whether you’re the sole breadwinner or a secondary earner in your home. But, many people put off buying life insurance because they don’t feel like they understand their options. It’s easy to procrastinate on buying a policy, especially when you’re working on getting your business off the ground, but while you’re putting it off your premiums are rising every year and your family is vulnerable.
This quiz from HealthIQ.com is a great tool for checking your understanding of the life insurance marketplace. Do you know the difference between term life and whole life policies, and the advantages and disadvantages of each?
What is the primary drawback to getting a policy through your employer? What is the best time to buy, and where can you go to confirm the stability of an insurance company? Are you restricted as to who you can name as a beneficiary? When is a medical exam necessary, and what options are available if you have health issues that prevent you from buying standard life insurance?
This quiz lets you test your knowledge on of all these areas and see how you stack up against the average American consumer. Take a few minutes right now to click through the questions and see how well you understand this vital financial planning tool.