Life insurance can be confusing. Many people completely forego getting life insurance just because they’re intimidated about all the information that’s out that. If this is you, we’re here to help. Here are seven tips for first timers. After you read this, give us a call with any questions you have for no-pressure advice and assistance.
- Assess Finances: Take a quick look at your financial situation to determine what type of insurance you want and how much you’ll need. Consider your mortgage requirements, children that needs support, businesses that you own or maintain, or investments you have. You can use a financial planner to help you or make a complete list of your considerations and bring them to us.
- Know How Much Coverage You Need: It’s common to underestimate what you think you’ll need. A good rule of thumb is to get a policy that is about 10 times your annual salary. You’ll need more money than just what covers major debts. Think of long-term expectations and goals before you decide on a precise number.
- Consider Policy Types: You’re probably considering either a term life or a whole life policy. A term life policy covers a certain period of time, generally in increments of 10, 15, 20, or 30 years. This is a good option if your goal is to have coverage until a certain financial milestone. A whole life policy will be a little more expensive, but it provides lifelong coverage.
- Don’t Focus on Premium Alone: Your budget is indeed important, but the policy rate should not be your only determining factor. You already know you get what you pay for, and in this case, every penny counts. You want a policy that is practical and provides what you need.
- Understand What Affects Your Rate: Your health and age are the main factors that determine what you’ll pay for coverage. If you’re young and healthy your rate will be lower, which is why financial planners recommend getting a policy earlier rather than later. Other factors contributing to your rate is how large a death benefit is, if you opt for term life or whole life, and term lengths.
- Compare Life Insurance Companies: There are many insurers that offer free quotes online, so it’s fairly easy to shop around at your own pace. However, this can get overwhelming quickly. We simplify this process by doing the shopping for you. You can provide your information to us, and we will do the heavy lifting and present you with the best policy options for your needs.
- Prepare for Questions and Be Truthful: There are a lot of questions during the application process. Insurers need to know sensitive information such as weight, tobacco and alcohol use, mental health, family history, and more. Be prepared for these questions, and do not omit or obscure information.
Four Seasons Insurance Agency helps clients get the best coverage for their situation in a way that works for them. Your financial security is our top priority.