Guidelines For Purchasing Life Insurance
There are some basic things you need to understand when you are readying yourself for life insurance.
Why do you need life #insurance? Do you have a family you are providing for? Do you have children you would like to see go to college, even if you aren’t alive? Would you like to have your mortgage paid off so your family can continue to live in the house you purchased together? Do you need help funding your retirement because you are concerned about Social Security? Are you interested in bequeathing money to your favorite charity because they support a cause you believe in? No matter how you define your need, get started today. Make a #goal to have a policy in place in the next 72 hours.
Once you’ve determined “why” you need life insurance, you need to figure out how much coverage you need. There are a number of online calculators you can utilize to help you figure this out. Be generous—remember there is always the possibility of inflation. Just as a note: hamburger in the 1960’s was 33¢ a pound and today a pound will cost you $6.99 at the butcher shop. Remember to include death #expenses, bills which would need to be paid off, school bills, #mortgage, and the taxes your loved one may need to pay. Also consider possible medical bills which will include your ongoing treatment. While the numbers may seem hypothetical to you, give it your best shot, put them away for a day or two, and then relook at your collection. Ask yourself if you can think of anything else to add, then ask a trusted friend or mentor to read and then discuss with that person.
Select a reputable #agent. Rather than selecting an agent which can only offer you a product from one insurance carrier, find one who will work to find you the best deal across multiple companies. You are likely to be able to shop with just one agent you trust, rather than a series of agents you don’t have a relationship with.
Finally, in preparation for purchasing life insurance, understand what words like #term, #premium, #dividend, return of premium, #beneficiary, and other insurance jargon really mean. Being prepared on your end will make the process much easier and you will successfully end up with the best product for you.