Looking to buy life insurance for the first time? If so, you’re probably asking yourself questions such as “How much do I need?”, “What kind of policy is best?” and “Which company should I buy from?” There’s no question buying life insurance for the first time, like any other new experience, can be more than a bit daunting. Below are six important tips that we hope will make the process smoother, eliminating frustrating false starts and unnecessary bumps in the road.
Understand why you need it
While most people may need life insurance at some point in their life, don’t buy a policy just because you heard it was a good idea.
Determine the amount of coverage you need
The amount of money your family or heirs will receive after your death is called a death benefit. To determine the proper amount of life insurance an online calculator, like the one available at this site, can be helpful. You can also get a ballpark figure using any number of formulas. The easiest way is to simply take your annual salary and multiply by 8.
Find the right type of policy
Once you figure out how much coverage you’ll need, you can think about the best kind of policy to meet your needs.
Look at the quality of the provider
An insurance policy is only as good as the company that backs it.
Consult a financial professional
A financial professional can help you factor in financial considerations, your needs, and your family’s needs.
Increase your vocabulary
Life insurance can be confusing, with terms like “premium,” “dividend,” “beneficiary,” and many more.
Source: New York Life Insurance