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Useful Tips For First-Time Buyers Of Life Insurance

Deciding to purchase life insurance can often give you peace of mind for your future and your family’s future. But knowing how to properly ensure your family is taken care of after your death can be daunting. By simplifying the process and adding the understanding of your policy, and how it will meet your needs.  If you are thinking about buying Life Insurance for the first time, take a look at this tips and advice on things to consider before you do.


Life Insurance

Tips for Buying Your First Life Insurance


What Do You Need?


When you begin researching all the different available coverage packages that you may be eligible for, it can easily be overwhelming. By taking the time to thoroughly investigate what coverage you need will require your understanding of your current financial situation. Factoring in what your loved ones can expect should you pass away suddenly. Would they be in any financial burden should that happen? Understanding how much money would be needed for your loved ones to continue sustaining requires some in-depth sense of what really would make sure they do not suffer needlessly.  


Know Your Debts 


Keeping yourself organized at home and all your finances in order will ensure that you do not overlook anything. A ledger or monthly budget can help you better understand your future forecast. What commitments you have and for what duration. Knowing what bottom line is needed to continue your home and your family’s regular day-to-day needs are met. It also will help you decide on the coverage you need. 


Get Quotes


By reaching out to several brokers and exploring the different variables of the packages they offer will help you find an affordable plan that can give you the peace of mind you need for the well-being of your loved ones. Most brokers will give you a quote on what your payment installments will be, and what sort of payout your family can expect. At you can browse packages designed to protect many different assets. Ensuring all obligations can be met should you succumb to unexpected death. Always choose a reputable company to secure your policy contract with. Offering life insurance packages that generally fall into 4 types of categories, but offer customization within. 


  1. Whole Life Insurance


This is a set amount that you previously agreed on with the coverage provider and you have carried out your premium payment arrangements for the duration of the contract. Upon your death, your beneficiary receives the agreed amount as well as any added cash value that was accumulated from the premiums being invested. This is one of the more straightforward varieties available.


  1. Term Life Insurance


This policy is an agreed payout amount as well as an agreed amortization period. This can range from 10 to 30 years. This is to protect the policyholder while they have taken on a large financial obligation like a mortgage. Where there is a set time frame for the debt to be paid with the lender. Further protecting your assets in the event of your sudden passing. 


  1. Universal Life Insurance


This package has a bit more flexibility. Your payments are divided, part of your payment is allotted for the policy amount you have agreed upon with the broker. The other part of your payment is invested into a savings program that you and the agent can explore together and agree on. This type of policy allows for modifications of amounts paid and offers withdrawals from any saving investments that have accumulated as long as your previous set amounts of the policy are covered by your balance. 


  1. Variable Life Insurance


Has the most flexibility out of all the plans. With the ability to alter and withdraw cash when needed. As long as you maintain your payment schedule you can customize your allocations for investing and the payout amount to your beneficiaries. 


The Premium


Premiums are your portion of the payment for a policy. The company takes your payment and it is used usually as operating and investment funds for the brokerage company, with a contractual guarantee on the brokers’ part to ensure the amount of your policy is paid to your benefactors, should you perish during the length of your preferred plan. Life insurance premiums do not change the price for the term of the agreement. Most offer the option to lock in your premium payment for the duration of the contract. Unless you have opted for a variable plan. Premiums can be at a higher cost as agents take into account the term of the contract, your condition, and the added risks of an unexpected death as we grow older.


The Application 


This information is of the utmost importance when brokers are creating your plan and deciding the premium payments necessary to offer the policy you need. Always be upfront and honest in answering all the questions on the application. Brokers need to know exactly the risks that could show up later on as the policy ages. Contributing factors like smoking or even a dangerous job are important in the brokerages’ final premium offer. Withholding that information could seriously affect your family’s ability to collect the funds should you pass away. So not only meeting the required payment arrangements but also ensuring your health and habits are as you say. Should a circumstance change then your broker should be notified to adjust any necessary premiums to properly ensure you have the needed protection. 




By taking the few steps necessary to protect your investments, and your family from financial hardship, you can rest easier knowing that should anything happen to you they will be okay. People can sometimes end up waiting too long to acquire a life insurance policy, and that ultimately can lead to either very high premiums, as your age and health are risk factors in the possibility of an increased chance of sudden death. Being someone who doesn’t plan for the worst-case scenarios could end up being not only a tragic time for your family but the absolute upheaval of their lives if any financial commitments cannot be met. As can underestimating your financial obligations. Not having enough coverage and the same burden could then be placed on your loved ones. Having them trying to sort and manage your commitments without the aid of a full insurance policy payout. Keeping the perspective of your family, and the understanding that your loss will be a devastating experience for them, adding the unneeded stress of finances to that loss is completely preventable. When you finalize your agreement with the policy provider, you will be able to fully appreciate that you have done everything to ensure that your loved ones are not displaced because of money.  

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