It takes work to buy a life insurance policy for yourself. It’s a complex purchase. The first step is ensuring you know what life insurance is and how it works. For instance, there are different benefits to each type of life insurance policy.
Insurance companies offer add-ons to basic life insurance policies to meet the needs of a wide range of customers. Today, Risk Managers is here to guide you on how life insurance can bring new values to your growth.
And we’ll list down the essential things to remember when buying life insurance. Check out more details in this blog post now.
Identify Your Budget
You need a clear picture of your finances before figuring out what kind and how much life insurance you need. Think about what you have set up to help loved ones who depend on your money.
This would include a savings account for emergencies, money set aside for retirement, and any life insurance you have through your job. You might need more to be ready to deal with the unexpected.
You can talk to a financial planner about what needs you should cover with life insurance, like a mortgage that needs to be paid, children who need to be taken care of, a small business that needs to be run, or a legacy you want to leave.
As part of the benefits you get from your job, you can talk to a financial planner. Or, you can find a planner who works only for a fee.
Pick Your Insurance Policy Type
People who want life insurance think about term vs. whole life insurance. A term life insurance policy will cover you for a certain number of years, usually 10, 15, 20, or 30.
It can be a cheap way to get coverage until you reach a specific financial goal, like paying off your mortgage or sending your kids to college. Aside from whole life, there are other kinds of permanent life insurance.
Permanent life insurance is more pricey than term insurance because it covers you for your whole life. It also costs more because it has a cash value.
You can use that money for anything you want, like to pay for emergencies, add to your retirement income, help pay for long-term care, or even pay the premiums on the policy.
Whether you choose a term policy or a permanent one depends on your needs and goals with your money.
Figure How Much Coverage Will You Need
Experts usually say that most people get less life insurance than they need. They usually only think about how much it would take to pay off their most considerable debts, like a mortgage.
But, it would help if you considered how much more they would need to help a spouse or partner pay bills, take care of kids, pay for college, or meet any other long-term needs.
One rule of thumb is to have a policy that pays out ten times your annual salary if you die. Depending on your situation and financial goals, you might need more or less than that. A financial planner can give you a more accurate number.
For accurate settings, you can try this DIME method. It is one way to figure out the costs you’ll leave behind. DIME stands for:
- D – Debt Mortgage, private student loans, car loans, credit cards, etc.
- I – Income replacement
Think about how long your spouse, children, or anyone who depends on your income is likely to live. Do you want to replace their income for the rest of their lives?
- M – Mortality or Death Funeral plans and costs.
- E – Education
Do you want to pay for the education of your children or grandchildren? How about kids’ care? Do you want your policy to pay for the rest of your kids’ time in daycare if they are already in?
Talk To a Trusted Provider
When you’re ready to buy life insurance, you need someone to look out for your best interests and help you through the process. Talk to a local independent Grange agent or look for us here at Risk Managers.
The thing that sets us apart from other insurance agencies is the heart of our team. Our team comprises hardworking, experienced people who care about our customers and have more than 100 years of experience between them.
We care about what keeps people and business owners up at night, so customer service is our top priority.
We’re here to help you find insurance solutions that will improve your life and give you peace of mind. So how do we offer our life insurance?
Life Insurance at Risk Managers
Risk Managers would let you think about the following questions before getting life insurance with us.
- Is your family okay if your current paycheck was the last one they ever got?
- How would they pay for the mortgage, daycare, and schooling if you weren’t working?
- How would they pay for food, medicine, and fun if they didn’t have enough money?
These are just some of the things you need to consider when planning the future. When making these plans with your spouse, it’s just as important to know how much you need as it is to know how much you can afford.
If you don’t answer these questions, your family’s health is in danger. Life and disability insurance premiums have never been cheaper than they are now.
Taking Life Insurance For Security
Since many insurance companies offer free quotes online, comparing life insurance quotes is easy. Since rates can differ, you should get quotes from one company or more to help you decide which one to go with.
Again, it would be best to work with a trusted company and provider that can help you find the ideal coverage at the best price. Talk to us here at Risk Managers today! We offer many insurances for personal and commercial which can also help you work with your life goals. Check out our site for more details.