How Do You Buy Life Insurance?

By Lisa Olsen Posted in Life Insurance News

Purchasing Life Insurance

No one ever wants to think about their death but to protect surviving family members and existing assets, planning what will happen after your death can make a world of difference to your survivors. First, you need to determine how much life insurance to buy. What assets are you trying to protect? A home? A business? Your family’s financial security if you suddenly pass away? Everyone’s reasons for purchasing life insurance are different, so determine your needs before you purchase a plan. There are several different types of life insurance plans available. Perhaps you already get some type of life insurance through your employer but would like to add an extra measure of protection.

Since you can’t predict when you will die you should access your insurance needs yearly and make adjustments accordingly. A good rule of thumb for a life insurance policy is to purchase enough to cover your funeral and any debt: home, credit card, loans, etc. That should be the absolute bare minimum. You should also have enough life insurance to cover your salary for at least two or three years if you are the primary breadwinner in your family and especially if you have children. Anticipating needs like college tuition or long term care expenses if you have a dependent parent.

Consider These Points

There are many different things to consider before choosing a plan. Once you have made a list of all the assets you need covered, then you are ready to choose your plan. Since insurance policies can vary from state to state, be sure to research your state’s policy offerings because they may be different than another state. There are several different ways to buy a policy: through an independent broker or directly from the insurance company. With the growing popularity of purchasing insurance on the Internet more companies are offering easy-to-navigate planning tools and answers about their specific plans on their site.

Related posts:

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  2. How Does A Whole Life Insurance Calculator Work?
  3. Shopper’s Checklist For Buying Life Insurance At A Low Cost Discount
  4. What Determines Accidental Death Life Insurance?
  5. What Is A Mortgage Life Insurance Policy And How Does It Work?

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