If you think to buy life insurance for the first time. You have some questions such as "How much do I need?", "What kind of policy is best?" and "Which company should I buy from?" This blog presents 5 secret for first time life insurance buyers……..
1- Identify Why You Need Life Insurance
Life insurance is designed to provide families
with financial security in the event of the death of a spouse or parent. Don’t buy a policy just
because someone says you should. Many people hear ads about life insurance so
many times that they begin to feel an instinctive concern about needing life
insurance. The truth is, however, not everyone needs life insurance. The
purpose of life insurance is to provide financial support for your dependents if you are no longer around
to do it yourself. If you don’t have any dependents, you probably don’t need to
spend money on life insurance but if others depend
on your income for support, you should strongly consider life insurance.
2- Identify The Right Type Of Policy
There
are two basic types of life insurance policies: first is life insurance and second
type is whole life insurance. life
insurance policies last
for a specified period of time. Term life is less expensive than whole life
because it usually expires before the benefits are used while Whole life
insurance lasts from the day you the policy until the day you die, no matter. A
whole life policy is more expensive because the coverage could last a few years
or several decades. Whole life policies can be borrowed against at a high
interest rate, while term life policies.
3- How Much Money Do Your Dependents Need
Identify the potential needs of your beneficiaries
can also help you decide how much insurance you should have. Don’t buy a policy just because someone says you
should. Many people hear ads about life insurance so many times. Your
needs are specific to you. Your decision will depend on the math. How much
money do your dependents need each year and for how long? Because your children
are likely different ages, that number is different for each beneficiary.
Calculate the needs of each dependent annually, multiple times the number of
years support is needed and then add those numbers together so all dependents
have what they need.
4- Identify The Quality Of The Provider
You want to make sure you choose a company you can rely on
to be around for as long as you'll need your coverage, and that makes wise and
stable investments.
5- Consult A Financial Professional
A financial
professional can help you factor in financial considerations, your needs, and
your family's needs.
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