Life insurance is a great option for many. It offers a lot of benefits not just for yourself, but for your family, as well.
And this is especially true if you have children who are very young or dependent on you. It is also very important for people who have a person dependent on them, such as a spouse or an elderly parent.
But how will you be able to buy a policy that works for you and your family? There are few options and we’ll walk you through how to get life insurance below. This way you’ll know how to best proceed.
How To Get Life Insurance
When you are planning to shop for a policy, there are basically three choices on where you can buy it from. You can purchase a policy from either of these three places:
- Directly from an insurance company
- From a life insurance agent
- From a life insurance broker
(You can also get an insurance policy through your employer where it may be a part of your benefit package. But, for this article, we’re talking about policies you buy for yourself.)
Purchasing Directly From A Life Insurance Company
To purchase a policy from a life insurance company, the first thing you need to do is to fill out an online application. Then the next steps include choosing a type of policy, how much coverage you want and what your budget is for monthly payments.
Sometimes you’ll also have to get a medical exam. However, some companies offer a guaranteed issue policy. This type of life insurance policy does not require a medical test.
Purchasing Through An Agent
Life insurance agents offer policies to potential customers. These agents are assigned by life insurance companies to sell their policies.
There are two types of agents. One is called a captive agent. They only work for one company and only sell that company’s policies.
The other one is called an independent agent. They can work with several companies and sell their policies.
Purchasing Through A Broker
Just like independent agents, they are not employed in a single insurance company. But unlike them, brokers represent the buyers and not the other way around.
They are not obliged to hide the cons of a life insurance policy, making them a more unbiased of information about the policies.
But before all that, what are the things to consider before purchasing a policy?
What Are The Things To Consider Before Buying A Policy?
Here are the things to consider before buying a life insurance policy:
- The type of insurance you need
- Debts you may have
- If you are married or not
- If you have dependent children
- Tallying up your financial obligations
- The life insurance company
Benefits of Having a Life Insurance Policy
Having a life insurance policy can provide a lot of benefits. Here are some of the most notable ones:
- Provide financial security for your family or your beneficiaries
- Pay for financial expenses after you pass away
- Provide an inheritance for your loved ones
- Pay for federal or state estate taxes
You can also use your life insurance policy for the following:
- Replace income for years of lost salary
- Pay off your other debts, such as student loans, credit card debt, car loans, and etc.
- Funding your kids’ college education down the road
- Pay off your home mortgage