If you’ve gone through any major life changes, such as getting married, expecting your first baby, or even purchasing a new home, you might be considering a life insurance policy. Life insurance can be a great benefit to your family. Below are five great tips if you’re a first-time life insurance buyer.
1.) Know who and what you are protecting
Knowing who and what you are protecting is the first thing to assess when you are considering a life insurance policy. Your child, home, and spouse are some common first priorities. Other people who aren’t homeowners, parents, or married may not realize that they could benefit from life insurance as well. 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.
2.) Start off with what you can afford
It’s a common misconception that people believe life insurance is unaffordable. There are plenty of options that allow you to choose what plan is right for you. You can start off with what you can afford and add to it overtime.
3.) Know who your beneficiaries are
Who would you want to receive your policy funds? This person is called a beneficiary, and they can either be your children, spouse, or even someone else you believe that depends on you for survival. A beneficiary can even be a trust, charity, or a church. You can also have more than one beneficiary if you choose to split your death benefit. Carefully consider who your beneficiaries will be.
4.) Get a will
Don’t have a will? Getting one sooner than later is better. Having a will can help ensure that life insurance proceeds are given to the right beneficiaries and are properly distributed.
5.) Work with a trusted license insurance agent
It’s important to speak with a trustful and knowledgeable insurance agent, who can help you find a policy that meets your needs. They can offer the best guidance and make sure all your questions are being answered. Talk to an Empower Brokerage agent to learn more about life insurance options.
There you have it! Five simple tips to keep in mind when you are a first-time life insurance buyer. The perks definitely outweigh the costs.
Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions. So if you have any questions or concerns, comment below and your question may be the topic of our next article!
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