If someone depends on you financially—a spouse, kids or an adult with special needs, then you need
life insurance. The benefits of a life insurance policy at the very least, provides money to pay funeral costs and at its most important, can help your family maintain their current way of life even after you are gone.
For a first-time life insurance buyer, finding the correct policy that fits your financial needs does not have to be hard. One of the first things that needs to be done is to assess how much life insurance you actually need. This can be determined by answering two questions:
1. Do you know how much your dependents will need to meet immediate obligations at the time of your death? Things to consider would be any outstanding medical bills, funeral costs, outstanding debt, mortgage balance and possible future college costs.
2. How much income will be needed to sustain your family in the future?
Once you have answered these two important questions, you can start to look at what life insurance options are available to you. Although there are many choices out there, there is still basically two types of life insurance to consider.
Term Life Insurance: For a first-time buyer, term always looks more attractive because of its affordability. Term life insurance is basically “renting” a life policy because it provides death benefit protections for a specific amount of time. Term policies can be anywhere from 10 years to 35 years with 20 years as the most common. Once your term ends, your coverage expires.
Permanent Life Insurance: Is the opposite of term life because it is used for life-long protection as long as premium payments are being made. Not only does it provide you with a death benefit, but it also can accumulate cash throughout the life of the policy that can be used for emergencies or to supplement your retirement income.
Term life is always a good choice because of its affordability. But buyers need to keep in mind that when the term expires, so does coverage and if you need to replace it with another policy, you will be older and possibly not as healthy as you were with the first life policy. Another life insurance policy at a later age will usually cost you more. Permanent life insurance might cost more than term initially, but the benefit of keeping this policy for a lifetime and earn cash value is a financially sound option.
Once the decision has been made to purchase a life insurance policy, you need to find an agent who can help with obtaining coverage. A qualified insurance agent will analyze your financial needs, process your application and submit it to various insurance carriers for the very best coverage and rate. The financial consult with your agent, the submission process and all of the follow up is done at no-cost to the prospective buyer.
The benefits of using an experienced life insurance agent/broker like BJF Insurance Services is our ability to obtain quotes from various insurance carriers and at the same time acquire the very best benefit and rates for our client. At BJF Insurance Services, we only obtain quotes from A-rated insurance companies from across the nation.
If you are looking for life insurance for the first time, sit down with an agent from BJF Insurance Services . Our expertise will help you avoid choosing the wrong type of life insurance policy, underestimating your true insurance needs and eliminates the risk of investing in an insurance company that is not A-rated in its industry.