September is Life Insurance Awareness month. The purpose is remind people the importance of having life insurance as a part of your financial plan.
Below is an article from one of our main company partners, Erie Insurance, as it points out the important things to know when purchasing life insurance for the first time. At Farris Insurance Advisors we can walk you through your different options to make sure that you have a product that is right for you and your family.
Maybe you just got married. Or had your first child. Or started a business.
Whatever the life event is, you are now buying life insurance for the first time. And that might intimidate and confuse you a little.
Help ease your mind by reading the following advice for anyone who is buying life insurance for the first time.
1. Understand who (or what) you’re protecting. Major life changes like getting married, starting a family or buying a house are often when people think about buying life insurance for the first time.
While anyone experiencing a significant life event like getting married or starting a family often recognizes the need for life insurance, others may not realize they could benefit from it as well. For instance, did you know that stay-at-home parents and student loan cosigners could have a definite need for life insurance? An insurance agent can help you figure out who and what you need to protect.
2. Only buy the life insurance plan you can afford. Many people are surprised at how much life insurance they really need to protect the people and things they love most. Yet it’s a mistake to forgo any coverage at all if you can’t afford the plan you want. Something is definitely better than nothing, and you don’t need to purchase the best plan to take care of your family. (Need more good news? Life insurance is probably more affordable than you think.)
3. Think through your beneficiaries. A life insurance beneficiary is the person or entity you name in your life policy to receive funds in the event of your passing. Your beneficiary can be a person, business, trust, charity or even your church. And, you can have more than one. It’s important to make sure you think through who your beneficiaries are and if any proceeds meant to benefit a minor should be held in trust.
4. Consider how much life insurance you need. An insurance professional like an Erie Insurance agent can help you talk through what makes sense for your life and budget.
5. Buy from a financially sound company. You want the backing of a financially strong insurer if you or someone you love needs to call on the life insurance policy. A.M. Best, the largest and longest-established company devoted to issuing in-depth reports and financial strength ratings about insurance organizations, gave Erie Family Life Insurance Company a rating of A (Excellent).
6. Take into account current and future needs. Don’t just consider your current lifestyle, keep in mind your future needs and what those could include (a spouse, children or business). By taking in these considerations today, you’re investing in the security of your future. Life insurance is less expensive than most people think—and that’s especially true when you’re younger.
7. Learn about life insurance. While an insurance agent can certainly help you navigate the world of life insurance, it also helps to have a working knowledge of it. The “Life Sense” articles in this blog are a good starting point.
8. Work with a licensed insurance agent. A knowledgeable and professional insurance agent can offer trusted guidance when it comes to finding the right life insurance protection at the right price. An insurance agent is also a trusted person your family can turn to in a time of need. Talk to an Erie Insurance Agent to learn more about your life insurance options and to get a free quote.
Certain terms and limitations may apply. Refer to our disclaimer.