Buying the first life insurance policy is an important decision with the power to affect the financial future of the policy holder's family. But for many, the process can be also be a very confusing one. If you are preparing to purchase your first life insurance policy and want to help ensure that you are making the best choice for you and your family, the following information can help.
Make the purchase as early as possible
Life insurance premiums become more expensive as your age rises and your health declines. Life insurance companies are able to offer extremely inexpensive premiums for applicants who are young and healthy but necessarily must charge much more for those who are statistically closer to death or those that have existing or pre-existing health conditions or other factors that could limit their lifespan.
Because of this, it is wise to consider purchasing life insurance as soon as possible after becoming an adult. However, if you are a single person with no dependents are dependent on your income, waiting until you are married or a parent can be a good financial decision in some instances.
Choose realistic coverage amounts
Life insurance benefits are designed to help provide for family members left behind who may have been dependent on your income before your passing. If you have young children, you will want to ensure you choose a coverage amount that will adequately support them through the years until they reach adulthood.
In addition to the amount needed for daily costs, such as housing, food, and medical care, it is wise to also make sure that your life insurance coverage amount is sufficient to cover the projected costs associated with your children's college education. In the event of your death, your spouse or partner may also need to be provided for, especially if they are not currently employed or do not earn enough income to adequately support the family or themselves in your absence.
A good rule of thumb when purchasing life insurance is to choose a coverage amount of at least ten times your current income. To learn more about choosing the best life insurance policy and get assistance in determining the amount of coverage needed, take time to have a confidential discussion with a reputable life insurance broker in your area, like Jack Brier. These professionals can help you look at your current financial liabilities and the needs of your family to determine the best possible policy terms to protect your loved ones.