BUYING LIFE INSURANCE
When you buy life insurance, you want the coverage that fits your needs.
First, decide how much you need – and for how long – and what you can afford to pay. Keep in mind that the major reason you buy life insurance is to cover the financial effects of expected or untimely death. Life insurance can also be one of many ways to plan for the future.
Next, learn what kinds of policies will meet your needs, and pick the one that best suits you.
Then, choose the combination of policy and premium and benefits that emphasizes protection in case of early death, or benefits in case of long life, or a combination of both.
It makes good sense to ask a life insurance agent or company to help you. An agent can help you review your insurance needs and give you information about the available policies. If one kind of policy doesn’t seem to fit your needs, ask about others.
This guide provides only basic information. You can get more facts from a life insurance agent or company or from your public library.
Important Things To Consider.
- Review your own insurance needs and circumstances. Choose the kind of policy that has benefits that most closely fit your needs. Ask an agent or company to help you.
- Be sure that you can handle premium payments. Can you afford the initial premium? If the premium increases later and you still need insurance, can you still afford it?
- Don’t sign an insurance application until you review it carefully to be sure all the answers are complete and accurate.
- Don’t buy life insurance unless you intend to stick with your plan. It may be very costly if you quit during the early years of the policy.
- Don’t drop one policy and buy another without a thorough study of the new policy and the one you have now. Replacing your insurance may be costly.
- Read your policy carefully. Ask your agent to or company about anything that is not clear to you.
- Review your life insurance program with your agent or company every few years to keep up with changes in your income and your needs.