You’ve decided to pick up a life insurance policy, but you have some questions. Like, what now? What coverage do I need? Where do I turn? How do I get started? For all your life insurance questions, we have answers and guidance. Get set up with a policy and protection for everything to come. And follow these six steps to peace of mind:
- Think about your life insurance needs. Everyone’s family, financial situation and needs are different. So before pursuing a policy, reflect on your life. For example, are you the sole income provider for your family? If so, your family would have no income if something happened to you. Do you have a large mortgage that your spouse couldn’t pay on his or her own? Stop and think about your unique situation. Calculating the right coverage will be beneficial in the long run.
- Choose a policy type. Once you’ve reflected on your needs, it’s time to choose a policy. Based on your findings in step one, an agent can help you understand Term Life and Whole Life policies and guide you to choose the right one. Here are some quick tips. Term Life policies provide coverage for a period of time like 10, 20 or 30 years and are often more affordable. Whole Life insurance packs added benefits, including coverage for a lifetime, a guaranteed death benefit and financial assets to your portfolio.
- Elect beneficiaries. Life insurance beneficiaries are the individuals or entities who would receive money if something happened to you. Many policyholders elect their spouse, children or parents as beneficiaries. But others can benefit too, like a business partner or a favorite charity. Policyholders can choose both primary and secondary (contingent) beneficiaries to put on the policy.
- Tell your beneficiaries about the coverage. When electing beneficiaries, it’s important to state each person’s full legal name and identifying information, like their Social Security number. You should also keep these individuals informed about where your policy paperwork is kept in the event it’s needed.
- Remember to update the policy. It’s easy to forget about your life insurance once the details are sorted out. But the birth/adoption of a new child, a marriage status update or another life event may change your mind about beneficiaries or coverage amounts. Your agent will advise you how to navigate these life changes, so make sure to work with your agent through every life event.
- Enjoy peace of mind. Life insurance is an invaluable gift for the loved ones in your life. But it’s also a gift for the policyholder. Enjoy the comfort that comes with knowing you are protecting your loved ones.
Looking for added peace of mind? Ready to get started with life insurance? Talk to a local, independent agent about a Term Life or Whole Life policy today.