5 Important Tips for First Time Life Insurance Shoppers

When it comes to buying life insurance to protect your family, you have a lot of choices to make. Everything from selecting the right amount of coverage to choosing a reputable life insurance company to buy your policy from can make the process feel overwhelming. Once you get started, you will discover that the process of buying life insurance really isn’t that complicated.

If you’re a first time life insurance shopper, a good place to start is by getting a rough estimate of how much life insurance you should be purchasing to protect your family. Next, get an understanding of the difference between term and permanent* life insurance so you’ll have a good sense of what direction you should take when it comes to these two basic policy types.

Finally, before you go shopping for your first life insurance policy, here are a few “good to know” tips for finding the right policy at an affordable price:

  1. Take advantage of the “free look” period.

    Even after your policy issues, you’ll typically have what is called a free look period. During this time, you’ll have a certain number of days in which to make changes to your policy, or to reject it altogether. Be sure to ask your insurance agent how long your free look period is and when it begins. If for some reason you don’t feel the policy is right for you, this is the time when you can change your mind with no financial obligation.

  2. Compare apples to apples.

    When getting price quotes on life insurance, be sure that you are comparing similar products. Because term life generally has lower premiums than a permanent life policy, there can be a big price difference for a $50,000 term policy compared to a $50,000 permanent policy. Depending on your coverage needs, it’s important to look at every angle, not just the monthly premium.

  3. Understand that life insurance is designed for protection.

    Your main purpose for getting life insurance should be to protect your beneficiaries financially in the event of your death. While permanent life insurance policies have the potential to earn cash value over time, they are not meant as investment vehicles.

  4. Enhance your coverage with policy riders if necessary.

    When you select a policy, ask your company representative about the types of policy riders that may be available to you. Riders or endorsements are ways in which you can customize your policy to meet your needs and budget.

  5. Buy from a reputable life insurance company.

    Your life insurance policy is meant to financially protect the people you love when you are no longer here to do so yourself. Do some homework on the life insurance company that you are considering buying from and learn more about how to select a reliable life insurance company.

For more tips on buying life insurance, or a life insurance quote contact us at Putnam Record Insurance Agency!

12 Responses to “5 Important Tips for First Time Life Insurance Shoppers”

  1. Ashley Turns

    Since my husband and I just had a baby, we’ve decided to invest in some life insurance to make sure that no matter what, she is taken care of. So I like your tip to ask about policy riders so that we can customize our coverage if need be. Once we find a great agent, I’ll be sure to ask them about the policy riders they offer so that our life insurance can be the best plan for us.

  2. Roger Middleton

    My wife has been on me about getting life insurance for the past month and I haven’t been too worried about it, but I think it would put her mind at ease. I liked that you had mentioned in your article that it can be important to remember that life insurance is there to protect your family financially. I hadn’t really taken into mind how it could affect my family, but knowing that if I passed that they wouldn’t be okay financially, I might have to start looking more into a life insurance policy.

  3. Spencer Montgomery

    I’m glad I came across your post, or I would never have known that there’s such a thing as a free look period for life insurance. It’s good to know that there will be a certain number of days in which to make changes to our policy or to reject it altogether. I’ll make sure to ask this to my future insurance agent.

  4. Jack Duff

    I like what you said about comparing similar products when choosing your life insurance policy. It makes sense to pay attention to every angle of an offer, so you can ensure it is actually the best fit for you. I am trying to find a life insurance policy, because I want to protect my family in case something ever happens to me. I will definitely keep this in mind, thanks.

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