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.
If necessary, 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 amount of
days in which to make changes to your policy, or even reject it completely. Be
sure to ask your company representative 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 responsibility.
2.
Compare apples to apples.
When getting price quotes on life insurance, be sure that you
are comparing similar products. Because term life normally 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 essential 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 heirs 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 an 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.
