Financial Happiness

Some of the Best Tips If You’re Buying Life Insurance For The First Time (based on forbes.com\FORBES Advisor):

Tip No. 1: Assess Your Current Financial Situation- You need a true picture of your financial health before you can figure out what type of life insurance you need and how much, Stafford says.

Tip No. 2: Know How Much Coverage You Need- You should consider how much more would be needed to help a spouse or partner pay bills, support children, pay for college tuition or cover any other long-term needs.

Tip No. 3: Choose a Life Insurance Policy Type- Term life vs. Whole life insurance. A term life policy will provide coverage for a certain period of time—typically 10 or 20 years. It can be an affordable way to get coverage until you reach a certain financial milestone. A permanent life insurance provides lifelong coverage, which is one reason why it’s more expensive than term life insurance. It’s also more expensive because it builds cash value.

Tip No. 4: Understand What Affects Your Life Insurance Rate- The two key factors life insurance companies consider when determining the rate you pay for coverage are health and age. The younger you are when you buy life insurance, the cheaper it tends to be. That’s because you are more likely to be healthier when you’re younger, and therefore less risky to insure.

Tip No. 5: Be Truthful on the Application- Be careful not to omit or obscure any information on your life insurance application. It’s very important to be truthful because insurance companies use third-party sources to validate the information you provide. For example, the insurance company can get information about you by accessing your medical records, prescription drug history, motor vehicle report and public records. You also might be required to take a medical exam, which includes blood and urine tests.