Those of us who feel young and able don't likely thing much about life insurance. However, if you're married or are a parent, thinking about life insurance can help set up your family should a tragedy occur. With that in mind, Erie Insurance offers the following seven tips for anyone considering purchasing 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, 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. Buy what you can afford. Some people forgo purchasing life insurance for fear they cannot afford it. Start with what you can afford, and add to it over time. The good news is that life insurance is probably more affordable than people may think.
3. Consider your beneficiaries. A life insurance beneficiary is the person or entity you name in your policy to receive funds. Your beneficiary can be a person, business, trust, charity or even your church. And, you can have more than one. Carefully consider who your beneficiaries will be and if any proceeds meant to benefit a minor should be held in trust.
4. Get a will. Having a will can help ensure that life insurance proceeds are properly dispersed.
5. Do business with a financially sound company. You want to know your insurance company will be there when you need it. Erie Family Life Insurance Company is celebrating its 50th anniversary this year and holds an A (Excellent) rating from A.M. Best, a respected provider of financial ratings for insurance organizations.
6. Learn about life insurance. While an insurance agent can help you navigate the world of life insurance, it also helps to have a working knowledge. These articles are a good starting point.
7. 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.
Source: Erie Insurance
Published with permission from RISMedia.