Looking at Buying Life Insurance? 4 Top Factors to Consider First
Did you know that in 2020 only 54% of Americans were covered by some form of life insurance?
It’s understandable—after all, younger generations are often more preoccupied with purchasing health or car insurance. However, buying life insurance can be a smart idea for adults of any age.
Unfortunately, many people don’t know where to start when it comes to buying life insurance. What should you look for in a policy? Should you buy life insurance online or in person?
We’re here to help you out. Keep reading below to learn four factors to consider before you choose to buy a life insurance policy.
1. Which Type You’d Like
Many people are interested in the prospect of having life insurance but don’t want to pay for it for the rest of their lives. If that’s the case, it’s worth considering term life insurance policies.
If you buy term life insurance, the coverage will only last a fixed set of time. The lengths typically range anywhere from 10-40 years. Many people use term life insurance for its affordability, especially if they’re only looking for coverage until they’re financially secure otherwise.
Whole life insurance is exactly what it sounds like—coverage for your entire life. These permanent policies are more expensive than term life insurance, but they also accumulate cash value, which can be used for your choosing.
2. The Flexibility of the Policy
There’s a chance you only want term life insurance at the moment, but you anticipate that you’ll want a permanent policy in the future. Luckily, many term plans anticipate this situation and can be converted to permanent plans.
However, term policies aren’t the only plans eligible for conversion. You can also use insurance conversion if, for example, you wanted to convert your military life insurance into whole life insurance.
3. Consider Your Lifestyle Factors
The price and coverage of your policy will likely depend on a few main factors, such as age, health status, and income. The younger and healthier you are, the cheaper policies will be and vice versa.
4. Determine How Long You Want It
There are plenty of people who are comfortable going through most of life without buying life insurance. However, they may want life insurance as they reach their senior years. At that point, life insurance can provide a way to ensure their loved ones have enough money to pay for assisted living needs for funerary services.
Conversely, some people use their life insurance from an early age to protect their dependents. If you have loved ones who rely on your income to live, life insurance can be a good way to ensure they have some money available should anything happen to you.
Buying Life Insurance – the Smart Way
Buying life insurance can be complex. It’s wise to do your research before purchasing a plan so you can ensure you’re getting the best possible option for your personal needs. With the guide above, you’ll be able to learn how to buy life insurance and feel confident that you’re as protected as possible.
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