Buying life insurance is a critical point in planning for the future. If it’s your first time buying life insurance, our step-by-step guide can help.
How to buy the right life insurance for you
If this is your first time looking at life insurance, take these basic steps to help you make a decision about which type of life insurance is best for your situation:
- Find out how much coverage is right for you: The amount of coverage you need from the life insurance you choose should depend on your reason for buying it in the first place. For example, if you would like to replace lost income for your loved ones for many years after your passing, your policy should have a more substantial death benefit. If you want to secure financial protection to pay off a mortgage, you need less coverage, with a death benefit paying your beneficiary the funds to pay off the loan amount.
- Calculate your future expenses: Make a list of all your expenses, such as mortgage payments, car loans and other debts. It would be best to consider any future expenses, such as college tuition for your children or medical bills. You can determine how much life insurance you need by assessing your financial situation, identifying your dependents and estimating future expenses. This will help you choose the right policy that will adequately protect you and your loved ones.
- Consider the type of life insurance you need: Term and permanent life insurance are the two main types of coverage available. There are also two types of permanent life insurance – universal life insurance and whole life insurance. Term life insurance is the cheapest type of life insurance and provides coverage for a certain period. Whole life insurance policies provide coverage for a lifetime as long as premiums are paid. In some cases, whole life insurance may only require a premium to be paid for a certain number of years. Finally, universal life insurance is flexible and allows policyholders to change the death benefit.
- Decide if your policy should be customized with a rider: If you need to customize or expand your coverage, a rider can provide benefits not otherwise included in a standard policy. Two riders that are usually added are guaranteed insurance and premium waiver. A premium rider exception pays your premium in the event you become disabled. Guaranteed insurance allows you to add to your death benefit without providing proof of acceptable health.
- Evaluate a range of life insurance companies: Every insurance company is different and offers different plans, offers and options. Our local agents have access to the best insurance companies in the country and can show you the best policies available, whether this is a first policy, an additional policy or if you are looking to change your policy and find a better deal.
Meet with a local agent for assistance.
If you̵
7;re ready to buy life insurance, now is the time to contact one of our insurance agents to get started on the process. We can compare life insurance quotes for you and help you find the best policy with premiums that match your budget.Source link
