Buying life insurance is a smart decision for most people because these policies offer additional security for your family, business, and loved ones. To find coverage that meets your needs, follow these steps.
Determine whether you need life insurance
If you don’t need life insurance, you shouldn’t buy it. Though, it can be hard to determine whether or not someone needs life insurance. As a rule of thumb, someone with no dependents and no debt probably wouldn’t need life insurance. To find out if you need life insurance coverage, get in touch with an insurance professional.
Calculate how much insurance you need
If you decide that life insurance is a good idea, you’ll need to determine how much insurance you need. Ask yourself what resources will be available to your survivors after your death. Consider Social Security and other retirement-related benefits, as well as your various assets and resources. You should also consider the financial needs of your survivors. By understanding what you can pass down and what your survivors will need, you can make a good decision on how much coverage you need.
Consider other objectives for your policy
If you operate a business or have other financial obligations, you should think about those things before purchasing a policy. Also, think about the financial power of a life insurance policy during your lifetime. If you purchase a permanent life insurance policy, you’ll have the option to build cash value in the policy over time. This money can be used while you’re alive to pay for anything you like. Keep in mind that your policy’s death benefit will decrease based on how much you withdraw from the cash value.
Find out if you need any riders
Insurance riders offer additional benefits on top of your base coverage. Riders cost more, but in many cases they are worthwhile. For example, some insurance policies offer riders that pay your premiums if you are severely injured or disabled and cannot work. There are other riders available, so ask an insurance agent which ones may be a good idea for you.
Contact an insurance agent to compare plans
Once you’ve completed all of the previous steps, you’re ready to buy a plan. You can do this on your own or with the assistance of an insurance professional. We recommend the latter. To get started with a free quote on life insurance in your area, call All Things Insurance at (763) 645-5450.