Buying Life Insurance for the First Time? Read these 5 Tips

Making the step to buy life insurance can be a daunting affair. There are a lot of options and companies out there who are all pitching their services to you. Many people who are in the market for life insurance wonder about the types of policies available and how much coverage they should actually buy.

Ultimately, life insurance is designed to provide loved ones with financial security after your death. Policies can be used to pay off mortgages, help fund retirements, or be put toward estate planning.

Life insurance will always be cheaper for the younger, so consider buying a smaller “starter” policy if you do not think any of the above situations apply to you just yet.

In order to make the process a bit smoother, and help you get more comfortable with the idea of buying life insurance, keep these five tips in mind as you shop.

1) Figure Out The Coverage You Need: The death benefit is the amount of money a family or heirs will accrue after your death. There are a variety of online calculators you can use to figure out how much life insurance is appropriate.

To come up with a good ballpark figure for coverage, you could also just take your yearly salary and multiply the number by 8. For a more comprehensive understanding, take the time to calculate the monthly expenses your family will take on after your death.

No matter what, be advised that calculators are only good for theoretical scenarios, and their determinations should not be taken as gospel. However, they can be good ways for you to get an idea about how much coverage to get as you rely on other tools and experts.

 

Click here to learn why millennials need life insurance!

2) Study Up On The Industry: Before buying life insurance, take the time to understand important definitions, like “premium” and “dividend.” Taking the time to get educated about the industry can make your conversations with financial professionals more productive, and ultimately make your life insurance search more fruitful.

3) Check Out Provider Quality: Another important element behind life insurance is the expertise and reputation of the provider behind it. Be sure to pick a company that has an established presence in the industry, along with one that had a prudent investment strategy for premiums. This ensures they will be able to pay policyholder’s claims.

4) Search For The Best Type Of Policy: After making a decision about the type of coverage you will need, it’s time to sit down and mull over the different types of policies. Generally, a term life policy will give you a more affordable premium, but permanent life policies will afford you
better coverage that could also offer cash value.

5) Speak With An Experienced Financial Professional: No matter what, it is always smart to sit down with an experienced financial professional before buying life insurance for the first time. They will be able to review your situation and advise you about the best options.

Good financial professionals are also able to draw on their years of experience to factor in the needs of you and your family, and help guide you toward a life insurance policy that best reflects what you need. It can be tempting to just do research and make decisions on your own, but the life insurance industry can be a confusing one, and making the step to buy life insurance is a big decision.

 

Do you have a question about life insurance? Click here to contact Davco Insurance today!

 

Courtesy of  Cuselleration

Why Millennials Need Life Insurance

When you think about all the financial worries and situations that 20-somethings face every day, you might feel a tad bit sorry for them. But when you look more keenly at their situation, you may think that at least some, if not most of them, have life insurance coverage. But that is not the case.

Life insurance coverage could be a fundamental piece of their financial plan and yet very few of of them actually go for it.

Most millennials are more focused on how they can budget their money and pay off their debts. But in situations where you have other people (such as children)  who are dependent on the income you make, not having life insurance coverage can end up derailing everything. Life insurance coverage basically acts as a safety net. It should be a haven that you go to first, not last.

The reason why you find this kind of situation with almost all millennials is because most of them are yet to accumulate home equity, build up a good 401k, or have enough savings in their accounts that can support and push the family for a long time should something happen that makes them lose their jobs or even death.

The stakes and risks grow along with your family and your children, partner, and mortgages all bolster your need to get life insurance coverage. Ironically, you find that almost all employed millennials are in a position where they are able to pay for the life insurance coverage if they decide that they really need to have one for themselves.

Come to term

One thing you need to know about insurance is that they consist of two types: term insurance and permanent insurance.

Term insurance, as the name suggests, is usually the type of insurance which is in place for only a specific term which can run between five to thirty years maximum. But the premium you pay every year never changes with a level-term policy. It is usually based more on your health from the time you are purchasing the premium, your age, and the amount of payout which you wish to provide. This is the death benefit.

If you die within this term, your beneficiaries are the one who will collect and use the benefits to survive and continue living their lives comfortably. But if you are still alive by the time the term you agreed upon ends, then you will walk away with nothing. But good news at this point is that you are still walking at least. But some people might think that this is a waste of some good money. In such a case, you can put the money in other policies like car or homeowner’s insurance, which can protect you from financial calamities.

Figure out your needs

You can do this by asking yourself whether you will be leaving anyone in a financial lurch should you die now. And if the answer is yes, then it is time that you looked into getting life insurance.

Do you have a question about life insurance? Click here to contact Davco Insurance today!

Why You Need Life Insurance

Nobody likes talking about life Insurance because it’s a very tiresome and stressful process. With current harsh economic times, having life insurance has become an essential financial element that will be handy in financial planning and security. Many people know the importance of life insurance but tend to procrastinate until a significant event in their life happens. Life insurance has some great advantages especially when the coverage is purchased at an early age.

When you buy life insurance coverage, you are obliged to pay an annual premium. The yearly premium is usually calculated by the insurance company for the entire period when the policy is active.

Why is it important to get a life insurance?

When looking for the best life insurance, fundamental questions tend to pop up. Who will take responsibility for your financial liabilities when you die? The next generation will not only inherit the financial assets but they will also take responsibility for the financial burdens when a relative passes on. What if children are involved when you pass away and you didn’t have life insurance? Your kids and family will be at economic risk. For business owners, the risk is just as high without a life insurance plan. A succession plan could put your business into an operation standstill.

How Much Insurance Coverage Do You Need?

This is a very tricky but fundamental question many are faced with when planning to buy a life insurance. Everyone will have a different answer to this question. After taking into consideration the above variables and your financial situation, you can start calculating your ideal life insurance coverage. Other additional factors taken into account are age, gender (it’s less expensive to insure women than men) and the amount of insurance you can afford. Those with family and more dependents can increase their life insurance amount. Consult with an experienced financial adviser on the best life insurance coverage that will suit you. Considering all the factors is essential before you sign the papers and start paying your annual fees.

Where should you buy a life insurance?

The insurance industry is fascinating. Different insurance companies offer different products. Davco Insurance will give you all the available life insurance options that suit your needs. We will carefully assess your financial situation and then offer you professional guidance on the policy that is the best fit for you.

Additional information should you learn

Life insurance is a massive purchase, which will be a part of you until you pass away. If you had purchased a policy sometime back then, consider reviewing it with Davco Insurance. If there have been tremendous changes in your life (such as getting married, having kids, relocating, etc.), it is advisable that you buy more insurance coverage or letting the old insurance lapse and then purchase a new one.

Do you have a question about life insurance? Click here to contact Davco Insurance today!