Insurance Services of Washington Blog
Purchasing a life insurance policy is a big step. But picking the best life policy entails processing a lot of information and making the right choices. The process can be overwhelming, especially for a first time policyholder. Luckily, licensed and knowledgeable insurance agents can significantly lighten the load.
Choosing the right policy can also get easier with these five tips:
1. Have a Clear Understanding of What Life Insurance is
First time policyholders should be clear on what the main purpose of life insurance is. In a nutshell, this policy is aimed to protect one's beneficiaries in the event of death. While some policies do have the capacity to accumulate significant cash value, life insurance should not be treated as an investment.
2. Look for the Right Type of Life Insurance Policy
Many people are under the impression that insurance policies are all the same. That's not true. There are two main types of policies – term and whole – and other lesser options. If you pick whole life insurance, your coverage lasts until your death and your beneficiary will get your benefits. Meanwhile, a term life policy only protects you for a specific period.
3. Determine How Much Coverage You Need
You should have a clear idea on how much coverage you need. Some insurance specialists say your death benefit should be about six to eight times your yearly salary. However, this is a tricky aspect and no one can determine for sure how much coverage one really needs. It's best to discuss this with a financial advisor as coverage can vary based on the policy holder's situation.
4. Find a Good Insurance Company
Not all insurance companies are equal, and how effective your policy is depends on the company you got it from. So do your due diligence and brush up which life insurance companies are the most reliable.
5. Make Use of the Free Look Grace Period
Insurance holders are typically given a grace period; a time frame wherein one can still reject their policy or make amendments to it. Make sure you ask your insurance agent how long your free look period is. Remember that during this time, you can still change your mind about your policy without having to worry about financial repercussions.
First time buyers of life insurance policies should not be intimidated with all the facts and options available to them. Do your research and talk to a life insurance expert to find out which policy is best for you. The Insurance Services of Washington Inc., has its clients as their first priority with affordable rates and clever policies. To learn more about how we can help you please contact our agency at (425) 868-1123 or Click Here to request a free quote