With so many life insurance options out there, it can become a little confusing if you are a first-time life insurance buyer. The process also causes you to think about the harrowing topic of your own death which may be a little overwhelming. The reality is though, that it has to be done. Let’s have a look at some useful tips for those who are new to the world of life insurance.
Understand why you need life insurance
Before you go about purchasing a life insurance policy, you should consider why exactly you need it. Realise that life insurance is intended to provide financial security to your family should you pass away, and that it is a very important investment. If you understand this, then your motivation for purchasing a life insurance policy will be a lot stronger.
Find the right type of policy
Think about the type of life insurance policy you need. Not all insurance policies are the same- there are two main types known as ‘whole’ and ‘term’. Whole life insurance will cover you until the day you day, with your beneficiary receiving your death benefit. Term life insurance will cover you for a specified period of time, and will expire if you outlive this period. At this point, you will either purchase another term policy or do without. Explore your options and think about what is best for you.
Determining the amount of coverage you need
You also need to think about the amount of coverage which you will need. There are various ways of calculating this, such as looking at your annual salary and making your death benefit around 7 times this amount. However, this formula can be difficult to stick to and it may not fit in with your budget. Discuss this your family and a financial advisor as it can be dependent on your unique situation.
Determining which life insurance company to buy from
Not all insurance companies are the same, so you need to do your research to figure out which one to buy from. You need to go with a life insurance company that has a good reputation and makes you feel taken care of and well advised.
Use our informative website to learn about and compare life insurance quotes from a number of different life insurance companies. We will gladly assist you in choosing a life insurance policy that is right for you, fill in the form on the right and we’ll provide you with several quotes, obligation free!