How to buy life insurance wisely

Life insurance can help you leave money to your loved ones when you die. In return for paying premiums throughout your life, your Beneficiary A lump sum will be paid at the time of your death.

This coverage can be helpful for a variety of reasons, such as covering your final expenses, passing on a tax-advantaged inheritance, paying off a mortgage, or continuing to financially support a loved one who depends on your income.

If you’re interested but not sure where to start, it helps to know how to buy life insurance wisely. Get started by getting a free price quote so you know exactly what to expect

How to buy life insurance wisely

Here are four tips on how to buy life insurance wisely.

1. Know your budget

Life insurance costs Like can vary greatly depending on factors Type of policy You choose, your age and your current state of health.

For example, the average monthly cost over 10 years is $250,000 Term life policy from $12.17 for a 20-year-old woman to $74.82 for a 60-year-old man, according to data reported by progressive.

Before you get life insurance, take some time to think How much can you afford? To pay every month for your life insurance premium. It’s a long-term expense, lifetime in the case of a permanent policy, so you’ll want to consider what you can afford both now and in the future.

Start with a free price estimate so you know how much it will cost

2. Know your goals

Once you have an idea of ​​how much you want to spend on life insurance, a good next step is to consider why you want life insurance.

Start with the end in mind by asking yourself what you want to achieve, says Ron Wadley, owner and principal agent of Insurance for Texans.

“Maybe you want to make sure your family can live stress- and debt-free if something happens to you. Maybe you want to make sure your kids can grow up well when you’re gone. Maybe you want to use. This is income later in life. “Positioning cash to use as cash. Maybe you want to fund a charity to keep you going after you’re done,” he says.

Taking the time to identify your goals is fundamental to determining the best plan for your needs.

3. Know the type you need

Next, life insurance is not one size fits all. Different policies are designed to suit different needs.

“When purchasing life insurance for the first time, consumers should consider the type of life insurance policy that is right for them, such as term or whole life insurance,” says Lisamarie Monaco, licensed funeral insurance specialist.

Term life insurance This is a more affordable option, but it only covers you for a certain period of time — like 10, 20 or 30 years. At the end of the term, you will be able to renew your policy based on your current age and health status, but this will often result in a premium increase. If you fail to renew or do not elect to renew, the term policy will expire and no benefits will be provided.

Whole life insurance On the other hand, policies come with a higher price tag but are designed to cover you for life. As long as you pay your premiums and the circumstances of your death are eligible, your beneficiary will receive a death benefit when you die. Complete policies usually come with a cash value Elements that you can borrow against in your lifetime.

In addition to deciding between a term, whole or other type of life insurance policy, it is important to consider an insurer Rider option.

“A rider is an optional feature or option that someone can potentially add to their policy. These features can range from guaranteed insurability to premium waivers and are often what set insurance companies apart,” says Michael Sparrow, a licensed investment advisory representative and Life insurance agent.

He adds, “Insurers try to offer competitive riders to compete for business. So, make sure you get the bells and whistles you want.”

4. Get quotes from multiple providers and shop around

Finally, shop around! Each insurer has different policies, rate and more

“You can go with your first choice, but it never hurts to compare rates, riders and reputations,” says Sparrow. “This will help you choose the best option for you and your family,” he adds.

A good place to start is to make a shortlist of reputable life insurance providers. From there, request life insurance quotes — you can often do this very easily online. Then, you can review the offers side by side to see which one is the best.

Another option, according to Wadley, is to find an independent insurance agent who can look across the market on your behalf to ensure you get the right coverage at the right price from a reliable life insurance company.

You can start the process online now by getting a free price quote from Haven Life. You can use the table below to start comparing companies and policies.