Congratulations, you’ve decided to buy life insurance. While buying life insurance may not seem like an event worthy of celebrating, it is — once you buy life insurance, your family and loved ones will be protected in case of a fatal emergency.
However, while buying life insurance means that you’re taking the right step to protect your family, it can also be intimidating — there are so many types, so many policies, so much to understand — and unless you’re a life insurance agent, chances are you aren’t well-versed in all the details.
If you want to buy life insurance but aren’t sure where to start, check out these 5 helpful tips.
- Determine how much coverage you need. The purpose of buying life insurance is to protect your family in case something happens to you. But if you’re under-insured, this defeats the purpose. On the other hand, if you’re over-insured, you’ll be paying higher premiums that you might not be able to afford. In order to determine how much coverage you actually need, you’ll need to figure out your monthly expenses. While that might not be the most fun thing to do, it’s crucial for determining how much coverage is right for your family.
- Consult a professional. Since there are a lot of types of life insurance policies, it’s a good idea to consult a professional to decide which type is best for you. However, while insurance agents are certainly professionals, you have to understand that they’re also salesmen. So any insurance agent you talk to from a certain company will try to sell you a policy from that company. Rather than speak to an insurance agent, speak to an insurance advisor who isn’t biased one way or the other. Sproutt has insurance advisors who are not affiliated with any insurance carriers — when you speak to them, they can give you advice based on what’s good for you, not what’s good for the insurance company.
- Do some research. As mentioned above, speaking with an insurance expert if a good way to help figure out which policy is good for you. However, you shouldn’t speak to an expert without having done at least basic preliminary research. Permanent versus term is something that you can try to figure out for yourself before consulting anyone. How much coverage you need is something only you can determine, not an expert. So make sure to do some research before so that you can have a general idea of the direction you’re headed.
- Compare quotes. Don’t settle for the first policy you see, even if the rates seem okay and the coverage is what you need. If this is your first experience with life insurance, make sure to compare different policies so that you can get an idea of what’s really out there. An insurance aggregator like Sproutt can help you get quotes from different insurance carriers based on your life situation. This is the easiest, quickest way to compare quotes from different providers.
- If the policy is too good to be true, it probably is. Whether you’re looking at permanent life insurance, term life insurance, no exam life insurance, or any other kind of policy — make sure it’s from a respected insurance provider. In many cases, less-than reputable providers offer quotes that, on the surface, seem great. Then when you read the fine print, you realize they’re not so great. So beware of insurance carriers that offer you rates that seem too good to be true. Trustworthy insurance carriers will offer you a fair rate, and you won’t have to watch your back or worry that somehow your family will end up in a bind. After all, the whole purpose of life insurance is to protect your family.
Remember Why You’re Doing It
Buying life insurance is not always a pleasant experience, since no one likes to think about their own mortality. However, when you focus on the fact you’re buying life insurance to protect your family, you can feel good about your decision. And when you shop smartly, your family and your wallet will thank you.
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