Be In The Know: Top 5 Tips When You Buy Life Insurance

Life insurance is a must for the future, but it isn’t something that you should just purchase at random – you need to be prepared. When you buy life insurance, you are doing so to protect yourself and your loved ones in the future, so take the time to get the policy that best suits you.  

Want some advice? Here are our top 5 tips to consider when you buy life insurance: 

1.      Know what you need. This is the most important step, and these needs have to be clear before you even start looking to buy life insurance. Think about what you want the insurance for, who is or may become dependent on you in the future, long-term financial and life goals, and retirement income. A good insurance advisor will ask you about these things so it is important to reflect on them carefully. 

2.      Do your research. Before you buy life insurance it is smart to understand the differences between each policy and what the pros and cons are for each type of insurance. If you don’t understand the differences, ask. Whole life insurance is insurance for your entire life whereas term life covers you for a specific period of time. Other insurance plans may be more suited for investments – you need to be clear on what you are buying and why. 

3.      Don’t buy direct. When setting out to buy life insurance, never go directly to the insurance company – they can only offer you their products, their services and their prices (there is no room for comparison here). Also, because they are more interested in their own needs than yours, they will try to sell you all the unnecessary bells and whistles – don’t buy into this. 

4.      Work with a broker. Instead of going direct, work with an insurance broker. An insurance broker with access to a number of different companies can comparison-shop for you, offering you the policy that meets your needs at the best rate. They will also be able to offer various products, and you can be sure that you are more than just a number – their success is based on your satisfaction – so they need to be sure that you are happy.

5.      Don’t let price dictate your decision. When you buy life insurance, price should never be the determining factor. There are many cheap policies out there but cost often reflects quality – and so don’t go cheap. That being said, the right insurance advisor will be able to explain the differences in price and how each policy works. 

When you buy life insurance, make sure that you are getting exactly what you need. Let these tips guide your search. 

For more tips to use when you buy life insurance, please contact Independent Financial Concepts Group today at 416-849-1653.