Hi Grace, what do I need to know before buying life insurance? This is my first time to buy a life insurance for my own and for my wife. Thank you for giving us an idea about the importance and benefits of having a life insurance. I really agree with you, life insurance is a great income protection. It is a great pleasure to ask you a question. This is my first time to send you a queries. Your blog is very useful, I keep on visiting it when I want to learn something about personal finance and insurance. Keep on writing!
Michael Ong, Brooklyn, New York USA
July 17, 2015 @ 7:26 PM
Hi Mike, I am glad you found InvestmentTotal.com useful. In my opinion there are many things to consider when buying life insurance. The information you can read today will be your guide before buying life insurance. Since you and your spouse wants to buy life insurance, you need to know the following;
What Do I Need to Know Before Buying Life Insurance?
- Why do you need life insurance? You need life insurance because you are a bread-winner. You don’t want to leave your family with financial struggles if you die.
- How much coverage do you really need? Make it at least equal to 3 years of your annual salary. Or it depends on how many years do you want your family to recover.
- Decide if you need riders such as total disability. Be informed that riders can increase your insurance premium.Decide and know if you really need add-ons.
- Can you afford to pay for the insurance premiums? Always think that paying life insurance premium is not a burden. Just keep in mind, it is your family’s income protection.
- What is your ideal payment scheme? (Monthly, Quarterly or Annually) Ask the agent on which options you can save a lot of money. Sometimes paying annually is the best option.
- Which type of life insurance do you want? There are different types of life insurance. Whole life, term life and those with investments. (variables).
- Who is your financial advisor? Find the best insurance agent in your local area. Make sure your insurance agent is knowledgeable and not just love “commission” but do help you to choose the right insurance.
- From which company should you buy life insurance? One of the biggest mistakes when buying life insurance is not buying in a stable company. Make sure you review and investigate the company’s assets or balance sheet. Choose the best life insurance company.
Tips and Warnings
Sometimes informing my readers about life insurance can give me a lot of reason to keep on writing. Buying life insurance isn’t that easy. You need to know exactly the things (contents e.g. policy, premiums, riders, benefits, coverage, etc.) and the reason you need life insurance.
You don’t need to spend a lot of time when deciding to buy life insurance. Spend 10% of your time searching and investigating life insurance companies and agent. Spend 90% of your time to act immediately. Do not forget life insurance and emergency funds are very useful in everyday living.