When you go through big changes in your life, like getting married, expecting your first baby, or even purchasing a new home, life insurance starts to sound like a necessity. This reaction is perfectly reasonable, considering you now have a responsibility to provide some financial security, and life insurance can provide that financial security.
The process can seem like a lot of pressure if you’ve never done it before. Continue reading for five great tips if you’re a rookie life insurance buyer.
1. Know Who and What You’re Protecting
Knowing who and what you must protect is the first thing you want to assess when considering a life insurance policy. Of course, your child, home, and spouse are some of the common first priorities. For others who aren’t married, parents, or homeowners, life insurance benefits may surprise you.
For instance, student loan cosigners could have a definite need for life insurance. You wouldn’t want your debt to fall on your parents or a distant relative. Additionally, if you are a business owner, you can get key person life insurance to protect your partners if you pass away. So, before you cast off life insurance, think about what might need that protection.
2. Start Off with What You Can Afford
A common misconception that stops people from pulling the trigger on life insurance is that it’s unaffordable. While there are pricier options, there are also plenty of other options that can fit your budget.
The great thing about life insurance is that you can always increase and shrink your coverage as needed. When you’re young with no family, home, or large financial responsibilities, you can start off with a small policy. And since it is smaller, you can expect to pay less monthly. As your station in life begins to shift, so can your life insurance policy.
3. Know Who Your Beneficiaries Are
A beneficiary is the person or persons you want to receive the death benefit from your life insurance policy. They can be your children, spouse, or even someone else that you believe depends on you for survival.
If you don’t have anyone like that in your life, you can also select a trust, charity, or church to receive the policy payout. Since this is a requirement when you purchase your life insurance policy, it’s important that you give this a lot of thought.
4. Get a Will
If you haven’t already gotten a will, you should. A will is a legal document that describes how you would like your property and other assets distributed after your death. One of the important assets that you can list in your will is your life insurance policy. Some policies can reach up to millions of dollars, so you don’t want to leave that to chance. Get a will and ensure that your life insurance proceeds get distributed correctly and to the right benefits.
5. Work with a Trusted Licensed Life Insurance Agent
Since this will be your first time purchasing a life insurance policy, you will need guidance. It’s critical to speak with a trustful and knowledgeable insurance agent who can help you find a policy that meets your needs. Their job is to educate you on the intricacies and fine print behind a policy. So, do not hesitate to ask all the questions you have.
Here at Empower Brokerage, we have licensed life insurance agents who can help guide you on this journey towards protecting your family.
There you have it! Five simple tips to remember when you are a first-time life insurance buyer. The perks certainly outweigh the costs.
Life Insurance Questions?
We hope that this information on the first-time life insurance buyer is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
Get affordable life insurance quotes by clicking here.
See our other websites: