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Understanding the Steps to Buy Life Insurance

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Purchasing life insurance is a critical point in planning for the future. If this is your first time purchasing 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 into life insurance, take these basic steps to help make a decision about the type of life insurance that best suits your situation:

  • Figure out how much coverage is right for you: The amount of coverage you need from the life insurance policy you choose should depend on your reason for purchasing 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 will need less coverage, with a death benefit that pays your beneficiary the funds to pay the loan balance.
  • Estimate your future expenses: Make a list of all your costs, such as mortgage payments, car loans, and other debts. It would be best to consider all future expenses, such as college tuition for your children or medical bills. You can determine how much life insurance coverage you need by assessing your financial situation, identifying your dependents, and estimating future expenses. This will help you choose the right policy that protects you and your loved ones adequately.
  • Consider the type of life insurance policy 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 least expensive type of life insurance and gives coverage for a specified period. Whole life insurance provides coverage for a lifetime as long as premiums are paid. In some cases, a whole life insurance policy may only require a premium to be paid for a specific number of years. Lastly, universal life insurance is flexible and allows policyholders to change the death benefit.
  • Determine if your policy should be customized with a rider: If you need to personalize or expand your coverage, a rider could provide benefits that are not otherwise included in a standard policy. Two riders that are commonly added are guaranteed insurability and waiver of premium. A waiver of premium rider pays your premium in the event you become disabled. Guaranteed insurability allows you to add to your death benefit without providing evidence of acceptable health.
  • Evaluate a range of life insurance carriers: Every insurance company is different, offering different plans, deals, 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, additional policy, or you are considering changing your insurance and finding a better deal.

Meet with a Local Agent for Help.

If you are ready to purchase 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.