Whether you are considering your first insurance policy or are reviewing your insurance portfolio, you're probably asking yourself questions such as “How much do I need?”, “What kind of policy is best?” and “Which company should I buy from?” There's no question buying life insurance, like any other experience, can be more than a bit daunting. Below are six important tips that we hope will make the process smoother, eliminating frustrating false starts and unnecessary bumps in the road.
1. Understand why you need it
There are different needs for life insurance at different points in your life. Many people review their coverage while they are single, getting married, having a baby or other life event changes. These are important steps to take to evaluate the coverage you have and ensure your financial strategy is healthy.
2. Determine the amount of coverage you need
The amount of money your family or heirs will receive after your death is called a death benefit. To determine the proper amount of life insurance, you can get a ballpark figure using any number of formulas. One of the easiest ways is to simply take your annual salary and multiply by 8.
3. Find the right type of policy
Once you figure out how much coverage you'll need, you can think about the best kind of policy to help meet your needs. Your association or affinity group has worked with New York Life Insurance Company to determine policies which suit the needs of a member like you.
4. Look at the quality of the provider
An insurance policy is only as good as the company that backs it. You want to make sure you choose a company you can rely on to be around for as long as you'll need your coverage, and that makes wise and stable investments.
5. Consult a financial professional
A financial professional can help you factor in financial considerations, your needs, and your family's needs.
6. Increase your vocabulary
Life insurance can be confusing, with terms like “premium,” “dividend,” “beneficiary,” and many more. Use the Tools and Resources section of this site to find helpful videos and other information to learn more.
This information is courtesy of New York Life Insurance Company, used with permission. It is intended exclusively for general information only. ©2021, New York Life Insurance Company. All rights reserved.