Gary Bacon Insurance Blog
Life is meant to be paid forward and one way to secure the future is to get life insurance. It is understandable if you feel a little twinge of fear out of the thought that things may not turn out the way you expected your insurance to be, especially if it is your first time to buy business insurance. Worry not! Here are a few vital tips in purchasing life insurance to make your purchase more convenient and smooth-sailing for the first time.
Know the Purpose of the Purchase
One point in life, you might have thought of having life insurance. However, don’t purchase such if you’re just fitting in with the trend, it may not meet your budget. Likewise, do not rush as it would likely lead to reckless decisions. Life insurance is an excellent lifetime investment for it would not hassle your family members in times of need. It gives you protection in events like the death of an immediate family member, helps you to pay tuition and matriculation for college, assists in funding retirement, and many others. Consider choosing a small starter policy if you’re not in immediate financial need.
Define Your Needs
To what extent would you like your insurance coverage to be? If ever you will die, the amount of money that your heirs will receive is called death benefit. If you want to calculate this, online calculators can be helpful. You can get approximate figures using some formulas. One simple way is to compute your annual salary and multiply it to 8.
To give you a more detailed process, add your monthly expenses your family will have after your death. The process will include death expenses, school fees, and mortgage bills. Compute your ongoing costs and divide it by .07. It is an indication that you’ll need a collective sum of money earning 7% yearly to pay current expenses. Add that to any money that you’ll need to cover one-time costs. Then you’ll have a fair estimate of the amount of life insurance you need.
Purchase the Right Kind of Policy
The moment you know how much coverage you need, analyze what the best kind of policy that will satisfy you. Primarily, there can be two options available: term life and permanent life. Term life is more affordable than permanent life. However, permanent life is more complete in coverage which can be a bit expensive. Here are things you need to remember, too:
A life worth living is a life secured as it would give you a sense of comfort in times of need. Apply a starter life insurance policy as early as now.
At Gary Bacon Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (252) 644-3353. Get your free quote today by CLICKING HERE.