Purchasing life insurance could seem like a daunting process. People often feel nervous shopping around, because they don’t know exactly what they’re looking for, and may feel intimated asking question after question about a process they don’t completely understand. While that makes complete sense, life insurance is a valuable asset for you and your family, so it’s important that you do your research before diving in. If you’re still not sure about what you need, ask a professional, get a second opinion… and maybe a third! Talk to friends and family for wisdom and advice. Here are a few questions to consider that may help get you started.
Do I Really Need Life Insurance?
Chances are, you’re going to die someday. If someone, say a dependent, relies on you and your ability to earn a living, you should definitely consider purchasing life insurance. If you’re a single college student with no debts and no dependents, maybe you don’t need the added monthly expense right now. However, keep in mind that the younger and healthier you are when you buy insurance, the lower your premium is likely to be. People often purchase life insurance long before they need it, in order to lock in a good rate! If you’re not sure, it doesn’t hurt to speak to an agent about your options. There are many different types of policies with varying rates.
Am I covered through my workplace?
It’s a good idea to start by checking your life insurance eligibility through employee benefits at your workplace. Take a look at the coverage. It could be that you are not taking advantage of a benefit you’re entitled to in your contract. Be aware, though, that the policy may be limited to specific number or amount times your salary, and that it may not be available after your term of employment at that specific company.
How do I purchase my own life insurance policy?
Your first step in the process is finding a life insurance agent. Use your friends, family, and colleagues as resources for recommendations. If your auto and home insurance provider offers life insurance, consider them as an option. Look for pointers on line. Meet with more than one agent, if you don’t like the first person you talk to. This is someone who you’re relying on for information and advice in a very important decision-making process. You should somewhat trust them.
These are just a few of the questions you’ll want to consider before starting the life insurance purchasing process. Stay tuned for part two, and jot down any additional questions you have for when it comes time to meet with an agent!