Factors to Consider When Buying Life Insurance

 

There’s a lot to consider when purchasing life insurance since it’s an important tool to have in any financial plan. When thinking about life insurance, first start by considering only your personal financial situation. What works best for someone else may not necessarily be the best choice for you. 

Begin your life insurance process by thinking about your reasons for purchasing the policy. Do you have dependents like elderly parents or children? Do you have a large, long-term payment like a home loan? Dependents and long-term loans or debts are two of the most common reasons to purchase life insurance, but there are many more. Knowing what you need life insurance for can help you determine the best type of policy, term length and coverage amount for you. 

Research the three most common types, term life insurance, whole life insurance and universal life insurance to determine which type is the best for you. Term life insurance is only in place for a specific amount of time, anywhere from 1 year to as many as 30. Whole and universal life insurance are in place for the entire life of the policyholder. 

Consider how much coverage you need by using a life insurance calculator or add together your income, any debts or long-term payments, day-to-day bills and utility payments and future expenses like college education. 

Think about how much you can afford for life insurance payments, but don’t leave yourself with less life insurance than you need. Term life insurance is typically a less expensive option than whole life insurance. Get a life insurance quote to determine how much premiums will be for the amount of coverage you need.

Buying life insurance can seem like a daunting process, but it doesn’t have to be. The life insurance experts at Efinancial are always available to answer questions you may have. Contact us today.