Your Life Insurance Prep Kit: Tips for Buying Life Insurance

Your Life Insurance Prep Kit: Tips for Buying Life Insurance
Nobody wants to think about it, but there will come a time when you are gone. It is only natural for us to want to do everything we can to help those that we leave behind. For many, the solution for that is a life insurance plan.

With a typical life insurance plan, you pay a premium for a set amount of time, usually until you pass away, and then a sum of money is paid to a beneficiary. Figuring out if one is right for you can be a bit depressing – and downright stressful. Here are some tips for buying life insurance to help you through the process

Decide if you want term or whole insurance

These are the two main types. A whole plan will cover you until the day you die. Upon that sad day, money will be paid to your selected beneficiaries. These can help from everything from funeral costs to financially stabilizing themselves in your absence. On the other hand, term life insurance is when you and the company agree on a set amount of time for you to pay a premium, and should you unfortunately pass away during that set time, the money will be paid out. Choosing which one you think you want is crucial before going down the path of buying.

Decide on a maximum amount

Deciding how much you need can be a difficult process. Some say it should be several times your annual salary, others say less. The real point here is to set yourself a ceiling.

Ask questions

Make sure you know your plan. Ask every question you can think of. For one, it’s good to know. Second, it shows you won’t be pushed around. Make sure all your bases are covered, if it is cancellable, if there are accidental death clauses, and how long the sum takes to be paid out in the end.

Life insurance isn’t fun. Thinking about death, and the difficulties that come with it never is. But that is why life insurance is there. It makes things easier for everyone that you know and love when you are gone. So take these tips to heart, and make an informed decision today. If you need any more guidance, the experts at McDougall Insurance are here to help.