Buying life insurance is a task many people would slot under the category of adulting, meaning that it’s one of those responsible things that you have to do even though you don’t want to. You’ve probably been putting it off because you feel overwhelmed by the task and don’t know where to start, but the good news is that thanks to the opportunity to buy online, purchasing life insurance has never been quite as easy and transparent as it is now. Below are a few tips to help you through this process.
Consider Long-Term Care Insurance
First of all, if you need life insurance, you might also need long-term care insurance. This policy can help cover a number of different expenses that other policies may not if you need care over a long period of time. You can review a guide on this valuable insurance policy to decide if it’s worth it for you and if it’s the right time to purchase it in addition to life insurance.
Choose the Right Amount
One of the hardest parts of buying a policy can be figuring out how much you need. You don’t want to overbuy, but if you are trying to protect your loved ones, you also don’t want to leave them in a situation in which they don’t end up receiving the financial resources that they need. If you are worried about your dependents, think about what it would take to replace your income over the years until they are adults. You may also want to think about such things as funeral expenses or leaving money to cover their college costs. Taking all of this into account will provide you with a rough guide of how much coverage will be necessary.
Choose Term or Permanent
There are actually many different types of life insurance policies, but the first thing you’ll need to figure out is whether you want a term or permanent policy. There are advantages and disadvantages to both. You purchase a term policy for a certain amount of time, such as 10 or 20 years. A permanent one is just what it sounds like. It’s permanent, but there may be ways to get rid of it if you don’t need it later. Premiums for term are generally less expensive, but the policy also has no value except as life insurance. In contrast, permanent can actually act as an investment. This means that while you pay more into it over the years, it also becomes valuable. When you are older and you no longer need it, you might be able to sell it for less than the death benefit but for what is still a substantial amount of money.
One of the biggest advantages of buying online is being able to compare policies at your leisure. The same as opening a bank account online, for example. Remember that while price is important, it’s by no means the only thing you should be looking at. There’s no point in getting a cheap policy if it doesn’t cover your needs, so do enough research to understand what is available and then make a list of what your requirements are.