7 Smart Steps for Buying Life Insurance
Writer • March 1, 2022
Life insurance is a smart choice, especially when you have family depending upon you. Even though we all hope for the best, preparing for the worst is the kindest thing you can do to support your loved ones.
If this is your first life insurance policy, you might not understand the steps for buying life insurance. Here are seven smart tips to help get you started:
- Decide if you need life insurance: Not everyone needs life insurance. For example, if you’re single, have very little debt that wouldn’t be discharged upon death and your estate is large enough to pay any tax obligations, life insurance probably isn’t a must-have; however, if you have people who depend upon you financially, their lives will be upended if you pass away suddenly. Life insurance can bridge the gap before they need to explore other options.
- Figure out how much life insurance you need: Think about which assets will be available to your survivors upon your death and which debts will still need to be paid. Consider whether your loved ones would be able to immediately support themselves and your family; then consider a policy that will pay for several years’ worth of annual income, on top of expenses. This will help you decide how much coverage you need.
- Understand policy types: Term life and whole life insurance are two popular policy types, but there are other types of life insurance available. Some of them build cash value, which makes them more expensive (but potentially worth it, depending on your financial circumstances).
- Find out what affects your rates: The younger and healthier you are, the cheaper your life insurance will be. It’s less risky to insure young, healthy people than it is to insure older people who have been through their share of health struggles. Your insurance agent can help you figure out how to find the best rate for your death benefit needs as well as your current age and health level.
- Compare life insurance policies and providers: After you’ve thought about the previous points, it’s time to shop around. Not every insurance company and policy are created equal. Before you sign on the dotted line, be sure you understand exactly what you get, what you’re committing to and why.
- Be honest on your application: When you fill out a life insurance application form, you will have to answer questions about everything from your weight to your mental health status. Your insurance company will make an effort to validate these answers, so be honest.
- Tell beneficiaries about it: Finally, once you have a policy in place, make sure that your beneficiaries know it exists and how to find it. In case of your untimely passing, they’ll need to know how to collect.
Now that you know the steps for buying life insurance , let Harvey Sarles Insurance Agency help. Call us today to learn more about our life insurance policies and which plans are right for you.
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