How to buy life insurance
It’s a fact. No one likes to buy life insurance or even admit he or she may need it. Many approach the prospect with more than trepidation and most put purchasing insurance off altogether. This is, of course, the worst thing you can do! There just a few things to pay attention to in order to get you and your family covered and ensure that when the inevitable happens (and we all know it will – it is just a matter of when?), your loved ones will be taken care of.
- What is your goal – the purpose of coverage?
Most people will start out with the idea that, at the very minimum, the cost of the funeral would be covered by the policy so that family members have less stress and worry at the time of your passing. If you are tempted to think like most clients at this point you will be thinking:
- I have plenty of time before that happens – I will just think about it some more.
- This is just too hard for me to think about right now.
Either way, the time to decide what you want from your Life Insurance Plan is now. You still have several more steps to take!
So, you can just elect to buy a plan that covers your funeral expenses – beautiful, that is a good start! Then think about whether or not you would like to use your plan to augment your retirement. Alternatively, would you like to ensure that your loved ones are financially provided for? Both? These are all considerations. There are plenty of plans and options out there.
2. Do your homework – research companies and plans.
It is paramount that you have a clear understanding of what kind of coverage you are looking for so that you are comparing apples to apples. Some insurance sites will allow you to enter your basic information and provide you with quotes for more than one insurance company. Don’t stop there. Go to those companies’ websites and look at their returns – does the information add up?
Once you have a couple of insurance providers narrowed down, you can then delve in and make sure that you are, indeed, comparing oranges to oranges. You will likely learn some things along the way that you may not have considered. Don’t be afraid to research some more, if this is the case. I highly recommend consulting with an Advisor at this point and develop a relationship with him or her. An agent may ask you questions or be able to present options you haven’t thought of or come across.
- Understand the document
Once you have solidified your goals, researched the options and have selected a plan, make sure you understand it! This is where the relationship with your agent becomes invaluable. It is imperative that you feel comfortable enough to ask questions and discuss concerns openly. Ensure you are entirely satisfied with the policy options and provisions. Do not sign the plan until you and your loved one are entirely comfortable. This is an important decision; make it a good one.
- Buy now rather than later.
Not only could something unforeseen happen, but, on the practical side, life insurance will cost you more later in life than earlier in life. You can think if it as a limited time sale. You wouldn’t wait to buy something you wanted when it is on sale would you? No. You would make sure to take advantage of the lower price and buy it before the item is sold out. Think of life insurance the same way and buy it now before the price goes up or you don’t need it any longer!
I am always happy when potential clients start this process with me – I’m glad to help clarify goals and provided research and recommendations. Always know the first word in Life Insurance is, well, LIFE!
Terry saves employers and employees money by identifying best valued benefits, allowing employers to focus on managing business and giving employees a piece of mind. Helps businesses and individuals determine the right kinds of insurance they need, at a price that’s right for them.
Provide compliance oversight for government legislation, including ERISA, COBRA, and PPACA. Access human resource assets to optimize business continuity, reviewing EOB’s to ensure correct billing and keeping up with technology-electronic enrollment.
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