Beginner’s Guide to Purchasing Life Insurance

You will make many decisions when selecting a life insurance policy. Use this life insurance guide as a helpful tool to get you started on the right foot. 

Determine Your Coverage Needs

You must determine the correct amount of coverage to help ensure financial stability. If you are unsure how to arrive at a good coverage amount, consider that many people use their life insurance to:

  • Pay off large debts (mortgage, student loans, car payments, credit cards, etc.)
  • Replace lost income for your family to sustain their current lifestyle
  • Cover large expenses for family members (college tuition, weddings, first cars, etc.)
  • Pay for final expenses

Research Types of Life Insurance

Once you know how much coverage you need, you can start to look at the most common types of policies. There are two primary categories of life insurance to choose from. They are:

  • Term life insurance: Usually the most affordable option, erm life provides a death benefit for a pre-specified length of time. 
  • Whole life insurance: These policies will remain in effect until your death as long as you continue to pay the premiums. They are typically more expensive, but they also accumulate cash value over time. 

The right life insurance policy can help secure your family’s financial future. However, finding and applying for that policy can be confusing for first-time shoppers. Working with a knowledgeable agent can help you cut through the jargon and streamline the process from researching to having a policy issued.