You’ve been thinking about it for quite some time. You know you need to purchase life insurance coverage, but aren’t sure of how to best move forward.
Don’t stress. You aren’t the only person to ever face this situation. In fact, it’s quite common to find yourself on the fence with no idea of what to do next.
As you ponder the future and consider your options, you may soon realize that whole life insurance deserves a second look. While this isn’t the only type of policy to consider, it’s definitely one of the best.
With all this in mind, you come to the first step in buying whole life insurance coverage: learning more about the finer details, including the benefits, the best companies, and how to make a purchase.
As you move through the learning process, there are three important questions to address:
1. Why is whole life insurance the right choice?
As you compare whole life and term life, you’ll do so with the idea of making a definitive decision as to which policy is best.
Despite the fact that whole life coverage typically costs more, many people move in this direction for one very important reason: a guaranteed death benefit.
With term life insurance, your policy expires after a predetermined number of years, such as 15 or 20.
With whole life insurance, you don’t have to concern yourself with this. As long as you continue to pay your premium, you can be rest assured that your beneficiary will receive a payout upon your death.
However, remember you do not to pick Term or Whole Life Insurance, you can do a mix of both. This way you can get the best of both worlds.
2. Which companies are known for being the best in the industry?
With hundreds of life insurance companies to consider, this can be a difficult question to address. However, since you’re only buying one policy (more than likely) you’ll need to make a firm decision.
The best thing you can do is compare the top rated whole life insurance companies, paying close attention to those that most closely match what you’re trying to accomplish.
For example, maybe you want to select a company with a high dividend payout. Or maybe you’re most interested in those that are known for offering the lowest monthly premium.
Once you define the word “best,” you can then find the company that most closely suits your personal and financial situation.
3. What’s the purchase process?
Once you compare companies and policies, it’s time to get down to business. You need to speak with your chosen provider to learn more about the purchase process.
Is a medical exam required? When is your first payment due? Can you pay online?
These are the types of questions you’ll discuss with your life insurance company. All of these, among others, will help you better understand the purchase process.
This is the first step in buying a whole life insurance policy. Once you make your way through this step, it’s time to move on.
In our next post, we’ll discuss the second step for making a purchase.