It’s always good to be one step ahead and start looking into life insurance and learning the process of how it works. It’s more beneficial in the long run to consider life insurance now rather than later. There are so many things to consider and so many options to go through like how to be prepared, why you need life insurance, and the different options available.
How to Prepare Before Getting Life Insurance
Before purchasing life insurance, it’s important that you are prepared by having some background knowledge on the topic beforehand. Below is a list that will make buying life insurance easier.
- Become Knowledgeable: Understand the basics of life insurance and know the basic vocabulary
- Decide Your Dependents: Decide who you want to protect under your policy, like your spouse and children
- Assess Your Needs: Understand how much life insurance you will need and how much you can afford
- Consult with Agencies: Look into stable companies that will offer you insightful guidance
- Get Free Quotes: Explore the different insurance companies and get multiple free quotes
Why Do I Need to Get Life Insurance?
Life insurance is needed in order to support your family with financial benefits once you pass and ensures that your children or spouse will be financially sound. Use the DIME formula to find out what coverage you need, like funeral or wake expenses, medical bills, financial debt, college fund for children, or beneficiary inheritance and taxes that come with it.
Different Life Insurance Policy Options
There are two major types of life insurance policies that you can choose from, known as term life insurance and permanent life insurance. Check out our blog, Permanent vs. Term Life Insurance: Which Policy To Choose?, for more details.
Term Life Insurance
Term life allows you to receive payments for only a fixed amount of time before the policy expires and gives you the most coverage for the best price.
- Annual Renewable Term: Paid premium for one year, while the policy is continued for 10-30 years.
- Level Term: Premium remains the same for a certain amount of time, anywhere from 10-30 years.
- Return Premium Term: If you outlive your policy, some of the paid premiums may be returned to you.
Permanent Life Insurance
Permanent life allows you to receive payments for life and it never expires.
- Whole Life: Premiums stay the same for the entire duration of the policy; builds up cash reserve but you do not have any control over it.
- Variable Life: Builds up a cash reserve in which you have control over where you choose to invest in.
- Universal Life: You may choose the amount that you pay towards premiums by directing accumulated earnings towards the premium.
Are you at the time in your life where you are considering buying life insurance? Then get a free quote from the TJ Woods Insurance Agency today! To find out more information about what life insurance policy is right for you, contact us with any question. We would be happy to help you.
