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How to Buy Life Insurance

Apr 30, 2013

How do you take care of your family in the event of your untimely death?  The answer is simple: life insurance.

Life insurance is designed for the purpose of keeping your loved ones living in the manner to which they are accustomed without having to change significant portions of their lives because they cannot afford expenses such as mortgage payments.

Top financial experts agree that getting life insurance is the most important part of financial planning that you can control. The stock market is highly unstable, as are most other investments, but life insurance is secure and will help you take care of your family once you are gone.

There is little question that life insurance is necessary, but the problem is that there are so many different varieties and different variables to define that choosing the right insurance policy becomes practically impossible without the proper guidance.

So we have devised a guide to get you started.  Let’s begin with defining the terms.

Term life insurance is a policy with a preset death benefit, such as $500,000, in case you pass away within a term of your choosing, such as 30 years.  After this term passes, your life insurance expires.

The idea behind this kind of life insurance is that by the time the term of your insurance ends, you have already raised your children and paid off your mortgage. You are probably retired and you and your significant other have your retirement income to live off of and perhaps some savings.

All of your big life expenses have passed by the time your life insurance ends, so you would not need life insurance anymore because your bills are minimal.

Whole life insurance, on the other hand, is meant to last for your entire or “whole life.”  Once again you choose a payout for your death benefit and from the time you sign your policy, you have life insurance for the rest of your life.

Whole life insurance premiums, however, are much higher than term life insurance premiums because whole life insurance has an investment component. Part of your premium goes to your actual life insurance and the rest of the premium is invested for you and acts as a retirement account which you can access after a certain time.

Before you buy life insurance, you must decide what kind of life insurance you need.  Term life premiums are very affordable, especially if you get life insurance when you are young and healthy while whole life policies tend to be pricier.

The older you get, the more expensive life insurance gets because the chances that you will pass away within your selected term are higher, so keep this in mind when you are purchasing life insurance.

The actual steps for acquiring a policy are relatively simple: you shop online to find some quotes to see what is reasonable and then you talk to an agent to discuss the finer details, get your check-up and sign a policy.  But you should know what you want and need from your life insurance policy.

To talk to an agent about getting life insurance please call 1-855-855-BMCC (2622).

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