[ Life Insurance 101 ] Buying Life Insurance
Do I really need life insurance?
As an organization that believes in consumer education, we believe the answer is a resounding “yes”. Life insurance is fundamental cornerstone of financial security. There are varying types of policies that are used for different purposes. For example, some policies only pay out in the case of death while others can be drawn on as retirement income. While the importance of buying life insurance is easy to identify, nobody wants to deal with it. However, life insurance doesn’t have to be confusing or boring. At North Star Insurance Advisors, we make sure our clients understand their policies and enjoy learning about the different types of life insurance.
How do I buy life insurance?
There are a few ways to buy life insurance. Today, as the demand for life insurance rises, it is popular to obtain life insurance by working with an agent over the phone. Certain companies like North Star Insurance Advisors partner with expert-level life insurance agents to provide the agents with hand-crafted, tailored, life insurance products. This way, you have different options and can enjoy choosing from multiple products.
Life insurance comes in all shapes and sizes. There are many things to consider when determining what kind of life insurance to buy
Generally speaking, Term life insurance is cheaper. For most people who want to mitigate the expenses of a costly burial – especially when also dealing with a loss – term life is the best financial decision when buying life insurance. Term life insurance is easy to understand because it works similarly to your car insurance. As long as you’re paying your term life insurance premiums, you’re covered. If you die within the covered period, the policy pays a death benefit. When the policy expires or you stop paying your premium, the coverage ends.
There are other types of policies such as universal life, cash-value, and whole-life insurance. These are used as investment and retirement tools as well as paying a lump sum in the case of death. However, due to the complexity of these policies its important have an experienced insurance agent or advisor by your side.
What kind of questions will I be asked when buying life insurance?
Just a handful of the important pricing factors on a life insurance policy include:
– Gender
– Age
– Weight
– Tobacco use
You should be prepared to pay more for tobacco use because smoking has the biggest impact on your life insurance price.
After working with your agent through the application you will be categorized by class as either preferred, super-preferred, standard, or substandard. This is the way a life insurance company defines the risk they are taking by insuring you. Things such as a lousy driving record may impact the pricing on your policy!
Although life insurance classes are meant for providing guidelines of what you can expect to pay, all insurance companies works differently.It is important to work with an expert to make sure you understand all the different aspects of what you are purchasing.
Now what?
North Star Insurance Advisors can take care of all your life insurance needs. Our expert team understands the different types of life insurance policies and will work with you to make sure you are an educated life insurance policy owner. We specialize in making the process simple. We can help you get life insurance today 100% over the phone!
