6 Tips for Purchasing a Life Insurance Policy for Yourself

Life insurance offers financial protection for family members who depend on your income. Although it may seem like a complicated process to go through without guidance, a little research and preparation go a long way towards finding the right type and amount for you and your family. Use the tips below to purchase a life insurance policy for yourself.

1. Decide Whether You Actually Need Life Insurance

Of course, life insurance is useful, but it’s not always necessary for everyone to get it. If any of the following situations apply to you, then you may wish to consider getting a policy:

• Someone depends on you financially to survive

• Your estate doesn’t have enough liquid assets to cover its debt

• You want to cover your funeral and burial expenses yourself

2. Calculate the Coverage You Need

This part can be tricky to figure out, which is why talking with an expert can help. They’ll help you look at your social security and other assets and financial resources, as well as the resources of your loved ones, to determine how big the gap is to be filled. You need to spend time thinking about what you want the life insurance policy to be used for and how much money it needs to be able to make that happen.

3. Weigh the Different Types of Life Insurance

Life insurance is not a one-size-fits-all gig, either. You’ll need to understand the differences between term life, whole life, and universal life. Term life typically comes in specified chunks of time, such as five, 10, or 20 years. Term life has the lowest premiums, but they are also finite options.

4. Consider If You Need Any “Riders”

Life insurance is meant to benefit the person who purchases the policy, but you can expand it to a number of “riders,” which are other features you can optionally expand the coverage to. Depending on the insurance provider you’re working with, this may or may not be free to do. It’s generally recommended to at least consider the waiver of premium and guaranteed insurability riders.

5. Shop Around for Multiple Quotes

You can save money on life insurance simply by shopping around and asking for multiple quotes. Remember, there are hundreds of companies in the country! There’s no reason that you have to settle for the first one you find. Additionally, make sure your requests have identical data so you can accurately compare each place’s services.

6. Decide Between Annual or Monthly Premiums

Again, depending on the policy, you may have the option of spreading the cost of the annual premium over the year for smaller, more frequent payments. It’s usually more cost-effective to choose the annual charge, and some companies may charge a convenience fee for the monthly breakdown, so be sure to investigate this metric when you’re shopping around.

With hundreds of different life insurance companies in the country to choose from, the best advice you can follow is to let them compete for your business. Compare quotes, look for deals, and only pay for the features that you need to protect your family in the worst-case scenario.