5 tips for getting life insurance for the first time
Life is uncertain. Life insurance is one of the best ways to protect those who rely on you.
Life insurance isn’t for you – it’s meant to replace your income so that your loved ones have a way to survive if you die too soon.
However, purchasing life insurance can seem like a daunting task. The good news is that even if this is your first time purchasing life insurance, there are steps you can take to make your life easier.
Review your current financial situation
The first thing to do is to get a picture of your finances. Take a look at your emergency fund and other assets, as well as your obligations.
You could have debts, including a mortgage, that your life insurance could pay off so that your family can continue to live in the house after you die. Get an idea of what you might want to cover, such as college for your kids or income replacement for your spouse.
Once you have an idea of your financial situation and what you want to cover later, you can decide on a coverage amount that will give you peace of mind while keeping your family stable.
Know if you need term or permanent life insurance
Understand the difference between term life insurance and whole life insurance. Term life insurance expires after a specified period, typically five, 10, 15, 20, or 30 years. On the other hand, permanent life insurance covers you for your entire life, as long as you keep paying the premiums.
Term life insurance is generally cheaper and can be a way to get low cost life insurance coverage. It is particularly affordable for families who are just starting out. Permanent life insurance can ensure you are covered for your entire life. Additionally, some policies create cash value, allowing you to use it for expenses later in life if you decide to cash it in after you no longer need it.
Carefully consider your needs. Many people find that term life insurance meets their needs, even if it expires after a while.
Understand the factors that influence your rate
Your health and age are the most important factors that companies take into account when submitting a life insurance quote to you. The younger you are, the more likely you are to pay a lower premium.
As you get older, life insurance – both term and permanent – becomes more expensive. Your state of health is also an important factor. You will answer many questions about your app regarding your habits. Unhealthy habits that increase your chances of premature death could lead to higher rates.
Some insurers, like Bestow, offer affordable term life insurance without medical exams, but you might not get the level of coverage you want.
Look beyond the premium
While your monthly cost, the premium, is often one of the most important factors to consider, it’s not the only thing to think about.
Look at what else is offered. When you choose a company like AIG for your life insurance, you also have access to a full-service company that offers other types of insurance – and potential discounts. Other companies, like Haven Life, offer great customer service and a relatively painless process.
Also be aware that if you purchase permanent life insurance, additional internal charges may apply. So even if it looks like you are getting a good deal on the premium, there may be other issues to consider.
Take a tour of life insurance
Finally, be sure to shop around for life insurance, comparing rates and companies and choosing what is likely to work best for you.
There are different aggregators, like Policygenius, which can help you compare quotes quickly and easily.
However, it can also be a good idea to shop around on your own, making sure you get the policy that fits your budget and long-term needs.
3 of the best life insurance companies
If you’re looking for a good start, consider our favorite picks for the best life insurance.
Bestow offers affordable term life insurance without the need for a medical exam. On top of that, the application process is quite straightforward and easy.
No more paperwork and long waiting times. Bestow can get you a quote quickly, then set up your coverage in minutes, assuming you’re approved.
There are also a number of options that allow you to choose the length of your tenure, as well as the amount of coverage. It is quite easy to combine and match to find the right policy for you.
Haven of life
In addition to term life insurance, Haven Life also offers disability insurance and annuities. Haven Life is issued by MassMutual, one of the best known insurance companies.
Haven Life offers a minimalist online life insurance application, which makes the process fairly straightforward. On top of that, Haven Life is known for its customer service.
If you are looking for a full service broker, AIG is one of the largest and oldest insurance companies. In addition to term life insurance, AIG offers permanent life insurance.
You can also get guaranteed issue life insurance, which can be more expensive but allows you to get a higher amount of coverage without the need for a medical examination.
At the end of the line
Life insurance is one way to protect your loved ones in the event of premature death. It can provide income for your family after you leave or offer them a way to pay off debts if needed. You also have peace of mind with life insurance, knowing that your loved ones are being taken care of.
Before purchasing a policy, make sure you understand your current financial situation, as well as your financial needs and goals. Compare different companies and use different quotes to get the policy most likely to provide you with the coverage you need at an affordable price.
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