5 things to consider when buying life insurance - SBInsure Agency | Union, MO Skip to main content

Getting the right life insurance coverage is an important step to take, especially as your life changes and your family grows. While the need for life insurance isn’t always pleasant to consider, it’s something that needs to be taken care of so that your loved ones are protected and taken care of in the event that something happens to you. Luckily, you have a team of experts at SBI to help you through the process – starting with these five questions.

Which type of Life Insurance is best for you – Term or Permanent?

One of the first things you’ll need to decide on when you begin the process of purchasing life insurance coverage is what type of policy will best suit your needs: term, whole life, or universal life. Term life insurance is the simplest solution: you pay premiums for a set period of time and the policy pies out if you pass away during that time period. Some term policies can later be converted to permanent policies, but not all, so be sure to check with your agent for details if you’re interested in this option.

Whole life and universal life are both types of permanent life insurance without a set period, or term. Whole life insurance allows you to take a lump sum back out of the policy while you’re alive. Universal life insurance is similar to whole life insurance but with added flexibility around taking money out of the policy early. Keep in mind that for both whole life and universal life insurance, taking money out will affect the policy’s payout. 

You can read more about the different types of life insurance here. An insurance agent will be able to help you with more details and suggestions for your specific situation – reach out to us to get started. 

What premium amount can you afford? 

The premiums you pay for your life insurance coverage will vary widely based on the amount of coverage you purchase, the type of insurance you select, and personal details such as your age and medical history. It’s important to settle on a premium that you can afford now and you’ll be able to afford down the road, because a lapsed policy can be very expensive or even impossible to reinstate if your health has changed significantly. 

It’s important to weigh affordability against policy benefits – for example, a term policy will be less expensive than a permanent policy, but it will only cover you for a specific amount of time. SBI takes all of these factors into account to put together a solution tailored to your needs and financial situation. 

How much coverage do you need? 

The amount of coverage you need is a crucial piece of the life insurance puzzle and requires some planning and calculations. Take a look at our interactive tool to consider the different expenses your life insurance policy may cover, and add up the monthly expenses your family may incur after your death, please the one-time expenses they’ll need to cover such as funeral costs. Don’t forget mortgage and other debt payments, regular bills, and future costs like education for your dependents. The experts at SBI can walk you through this process and help you figure out exactly how much coverage you need. 

Do you have a use for life insurance beyond a death benefit? 

Once you’ve figured the basics of your life insurance coverage, you may want to consider additional benefits a life insurance policy can provide while you’re still living. Some permanent life insurance policies offer the option to take money out of your policy before death, which can be useful in the case of a long-term illness like cancer, or to cover end-of-life care. The option that’s best for you will depend on your financial 

What are the best coverage options for your unique situation? 

When it comes to life insurance, the best way to feel confident in the type of policy and coverage amount you’ve purchased is to enlist the help of an insurance professional. As an independent insurance agency with the ability to shop your insurance through multiple insurance companies, the goal of SBI’s team of experts is to create the best coverage packet to meet your needs at the most competitive price. We’ll take the time to sit down with you and get to know the details of your situation and what you need in a life insurance policy – as well as the things you don’t need. No need to sacrifice your time or peace of mind! Ready to get started? Fill out the form below and we’ll talk to you soon.  

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