Tips for Selecting Life Insurance

Obtaining life insurance can be a very difficult process, especially for young adults who have not had to do it before. The first time for everything is almost always the hardest and finding affordable life insurance is no exception. I originally got life insurance for the first time last year. Luckily, I had a strong recommendation of both the company and type of plan to get from a family member.

If you don’t have such a recommendation, it’s important to know what you are looking for. While I could recommend specific companies, I have found that there are a lot of companies out there that offer competitive rates. In other words, it’s in your interest to shop around once you have a basic idea of what you are looking for.

life insurance

Will Your Family be Covered?

Death Benefits

Death benefits are one of the first things to consider when finding the best life insurance plan for you. This is one of the most important considerations because it will mean the difference between providing your family with financial security and not. This is an important difference. When you are looking for life insurance, make sure to consider your needs. Do you have a sizable mortgage that would need to be paid off? Are you the primary bread winner, thereby making replacing your salary a priority? There’s no secret formula, except to include everything that makes your financial situation unique. For my wife and I, we are both currently working with no plans for kids in the future. We also don’t have a mortgage at this point, so we don’t need any large death benefit. When we start talking about buying a home, we may consider adding a couple term life insurance plans that would cover the mortgage though.

Premium

This is the other big consideration when getting your plan. Almost every company is going to offer similar death benefits, but they are going to be at different premiums. The reason this is the case is because each company has different people who assess the risk of insuring your life. One company may feel like you have significantly less risk while the other more. My experience has been that the premiums have been close to the same, but my situation is unique again. I am a young male with no history of major medical conditions, so there aren’t a lot of variables to compute. Make sure to shop around before buying life insurance.

Discounts

The last major tip that I have for you is to shop for discounts. One of the most popular discounts is multiple plan discount. This means that you get multiple types of insurance from the same company, and as a result of your loyalty, they offer you a discount. When looking for this type of discount, you need to determine whether the company offers multiple forms of insurance. The best place to look for a discount is your current insurer. If you already have a car insurance plan, check with your provider to see if they offer life insurance. It can never hurt to ask.

Getting life insurance, just like any other major decision, comes down to weighing your options. Luckily, we have lots of options made available to us. It is up to you to be responsible with these options and find the best policy for you and your family.

4 Responses to Tips for Selecting Life Insurance

  1. Evan says:

    It may fall under the heading discounts but I’d also look into banding. Some companies will reduce what you are paying per $100,000 if you purchase more. So $200K might be $X but buying $250K may only go up a small incremental price.

  2. Thanks for the information you provided about tips for selecting a life insurance. It is really important for knowing how to choose Life Insurance.

  3. I’ve had life insurance since my wife and I got married a few years ago. We opted for a vanilla term plan, until we cover all our other investing options then we might slide into a few annuity options.

  4. […] such luck. It’s just some guy calling to sell life insurance (or their “assistant,” likely a college student making beer money to call people on behalf of […]

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