Advice for Buying Life Insurance for The First Time

1. Advice for Buying Life Insurance for The First Time

2. Designed to provide families and individuals with financial security in the event of the death of a spouse or parent, life insurance can help pay off mortgages, provide education for children, fund retirement plans and help in estate planning. Understanding why you might benefit from life insurance is the first step towards buying a policy, and it can help to put it in the following, simple terms: If someone, or some others depend upon your income for support, then purchasing a life insurance policy is a sensible idea.

3. That said, whether the above scenario applies to you currently or not, it may well do in the not-too-distant future, so you still might want to consider purchasing a smaller, beginners’ policy. It helps to remember that the younger you are, the cheaper the life insurance will be. What level of coverage do you need? Called a death benefit, the amount of money family members or heirs will receive in the event of your death, can be determined with the help of an online calculator, or for a quick and simple (but rough) calculation, you can simply take your annual salary and multiply it by eight.

4. Online calculators will only ever give you a hypothetical answer though, so for a more accurate figure, you’d be advised to consult with an insurance professional who can talk you through your financial situation in detail and help you arrive at a sum. While you won’t be able to arrive at a definite figure until you’ve met with a professional insurance agent, it’s generally useful to have a basic understanding of how life insurance works before doing so, if only for your peace of mind.

5. What policy should you choose? There are two main options for life insurance coverage, and these are called term life and permanent life. Term life is the more affordable option, but permanent life offers more comprehensive coverage that can add cash value; be sure to explore all your options before choosing the policy you think will best suit your needs. Choose an insurance company that has a good reputation, and whom invest premiums wisely to pay its policyholders claims, and make sure to take your time over your selection.

6. Buying life insurance for the first time may seem like a daunting prospect, and one that many prefer not to face, but the reality is that when others rely on you for financial support, and that support is one day taken away from them, many will struggle to cope. Helping to secure the future of your loved ones is always worthwhile, so if you haven’t yet invested in a life insurance policy, now might be a good time to meet with an insurance expert and talk about policy coverage.

7. We Insure Miami was founded on the principle that every individual and business, big and small, has assets and valuables that need to be protected and insured against forces outside of our control. We offer Auto, business and life insurance in Miami FL. Our agents understand that you work hard every day to protect your car, home, business and family. WE are passionate about Insurance and passionate about serving you. If you are looking for auto, home, business insurance companies in Miami, contact us for a quote or a complimentary review of your insurance policies.