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  • Writer's pictureFarmers Mutual SC.

Tips for First Time Life Insurance Buyers

Buying life insurance can truly be confusing, especially as there are so many available

options to choose from. The most challenging is deciding how much and what type of

insurance you need.


Don’t worry, we have prepared a couple of tips for you!


Tip#1: Choose an independent insurance agent.


Independent insurance agents provide you with a variety of different options, making it

easier to find a product that fits your specific situation. They will help you find a policy that

fits not just your needs but also your budget. Additionally, you will most likely choose

someone from


your community- who you know or who knows you.


Tip#2: Assess your current financial situation.


You need a true picture of your financial health before you can figure out what type of life

insurance you need and how much. Take a deep look into your emergency fund and your

retirement plan, but also take into consideration the support of loved ones who depend on

you financially.


Tip#3: Know the difference between term life and permanent life insurance.


A term life policy will provide coverage for a certain period—typically 10, 15, 20 or

30 years. A permanent life policy provides lifelong coverage, which is why it’s more

expensive than term life. Therefore, choosing a term life policy can be an affordable way to

get coverage until you reach a certain financial milestone.


Tip#4: Take advantage of the “free look” period.


Even after your policy issues you will typically have what is called a “free look period”.

During this time, you will have a certain number of days in which to make changes to your

policy or even reject it altogether.


Tip#5: Experts recommend a coverage amount equal to ten years of your income.


Keep in mind that your life insurance needs may change over time for a variety of

reasons. Reevaluate your life insurance periodically to see if you need more coverage.


Tip#6: Know how much life insurance you get through your employer.


Once you look carefully at the amount of coverage your company may/may not provide,

consider buying additional life insurance, either through benefits plans at work or on your

own.


Tip#7: Be ready to answer a lot of questions when applying.


Make sure you are truthful on the application. Companies may use third-party sources to

validate the information you have given to them.


Do your research and remember we are here to help.

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