4 TIPS FOR BUYING LIFE INSURANCE

1. Why do you need life insurance? 

Most of us need life insurance at some point in our lives. But don't buy a policy just because you heard it was a good idea. Life insurance is designed to provide your family with financial security in case you, your spouse, or a business partner pass away.

Life insurance can help pay off your mortgage, help with college expenses, help fund your retirement, help with estate planning or buy out a business partner. If you have loved ones who depend on your income for support, you should strongly consider getting life insurance. Also, the younger you are, the less expensive life insurance will be, so even if you don't have an immediate need you may want to consider purchasing a "starter" policy for the future.

2. How much coverage should I buy?​

A simple life insurance calculator is just a rough estimate.

As useful as calculators and rough estimates are, they cannot provide you with final answers. Calculators only allow you to perform "hypotheticals," recalculating and generating new results as you make and input new assumptions. 

3. Finding the right life insurance policy. 

Once you figure out how much coverage you'll need, you’ll need to find the type and term that you need the coverage. Your options are term or permanent coverage. Your budget will be a factor as well. Remember that the term can be converted to permanent.

Consider term for maximum coverage for your dollar.

​Consider Permanent or whole life for

Creating a Legacy of love for family or charity. There are other benefits as well.

4. Consult an independent broker.

A financial professional can help you factor in your financial considerations, your needs, and your family's needs.  You will save money.

Dave Shortill has been an independent broker of insurance products since 1987.