Maybe you just got married. Or had your first child. Or started a business.
No matter what the life event is, you are now buying life insurance for the first time. And it can scare and confuse you a little.
Help yourself to think by reading the following advice for anyone buying life insurance for the first time.
Understanding Who (or What) You Are Protecting
Major life changes such as getting married, starting a family or buying a home are often when people think about buying life insurance for the first time.
While some people experience a significant life event such as getting married or starting a family, they often realize the need for life insurance, others may not realize that they would benefit from it as well. Did you know, for example, that resident parents and student loan customers may have a definite need for life insurance? An insurance agent can help you find out who and what you need to protect.
Buy Only the Life Insurance Plan You Can Afford
Many people are amazed at how much life insurance they really need to protect the people and things they love most. Still, it is a mistake to abandon any coverage at all if you cannot afford the plan you want. Something is definitely better than nothing, and you do not have to buy the best plan to take care of your family. (Do you need more good news? Life insurance is probably cheaper than you think.)
Think about your beneficiaries
A life insurance recipient is the person or entity you mention in your life policy to get money in case you are approved. Your recipient can be a person, company, trust, charity or even your church. And you can have more than one. It is important to make sure that you think through who your beneficiaries are and whether any income that is in favor of a minor should be kept in trust.
Think about how much life insurance you need
An insurance professional like your local Erie Insurance agent can help you talk through what makes sense for your life and your budget.
Buy from a financially sound company
Y you want the support of a financially strong insurer if you or someone you love needs to call for life insurance. A.M. Best, the largest and longest-established company engaged in issuing in-depth reports and financial strengths on insurance organizations, gave the Erie Family Life Insurance Company a rating of A (Excellent).
Take into account current and future needs [1
9659005] Do not just think about your current lifestyle, think about your future needs and what they may contain (a spouse, children or business). By taking these considerations into account today, you are investing in the security of your future. Life insurance is cheaper than most people think – and this is especially true when you are younger.
Learn About Life Insurance
While an insurance agent can certainly help you navigate the life insurance world, it also helps to have a working knowledge of it. The articles "Life Sense" in this blog are a good starting point.
Working with a Licensed Insurance Agent
A knowledgeable and professional insurance agent can offer reliable guidance in finding the right life insurance coverage at the right price. An insurance agent is also a trusted person that your family can turn to in emergencies. Talk to your local Erie Insurance Agent to learn more about your life insurance options and get a free quote.
Certain terms and conditions may apply. See our disclaimer. This story was originally published in 2015.