How to Choose the Right Life Insurance Policy

Life insurance for many people is a non-negotiable. It offers financial protection in the event of an unexpected loss that other types of insurance or financial investments can't match. But whether you are looking around for your first life insurance policy or revisiting an existing policy, a couple of common considerations always come to mind: "Is this the right plan for me? Is this enough coverage?".

At Twin City Underwriters, we help individuals and families find the answer to these questions and gain confidence in their insurance decisions. Let's look at how to choose the right life insurance policy.

Understand Why You Need Life Insurance

There are countless reasons why one may need the protection and peace of mind that life insurance can provide. From replacing an income to covering outstanding debt, the right life insurance policy can ensure your loved ones are positioned for financial security in the event of your passing.

Read More: 5 Reasons to Buy Life Insurance

The Challenge of Choosing a Policy

Why is it so hard to choose the right policy? For one thing, there are many different options to choose from - different types, different coverage levels, and confusing terms. On top of all of this, the stakes are high; you need to choose an affordable policy that fits into your existing budget, but you also want enough coverage to be comfortable and confident that when the coverage is needed, it will take care of any potential financial burdens your loved ones may experience.

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Steps to Choosing the Right Life Insurance

Step 1: Define Your Financial Goals

First and foremost, identify what is important for the financial future of your beneficiaries. Do you need coverage until your children are grown, until the mortgage is paid off, or do you plan to leave a financial legacy for your family? This step is crucial in determining whether the life insurance policy you are purchasing is meant for short-term protection or long-term investment. Begin by considering your financial goals, as there are many ways the right life insurance policy can provide monetary protection and more.

Step 2: Assess Coverage Amount

Sometimes, one of the hardest parts of choosing the right life insurance policy is just feeling comfortable with the amount of cover you buy. Here are some practical ways to come up with an estimate of an appropriate coverage amount.

• If replacing an income for your spouse and or dependents, multiply your annual salary by the number of years you would need covered to maintain their standard of living. This may vary depending on the age of your children.
• Total up existing debts you would want cleared (vehicles, mortgage)
• Don't forget to include enough for funeral expenses
• Think of your dependents' future, would you want to help cover costs for education, their first down payment on a home or something else? At times, life insurance is used to leave a legacy behind and help build the future for your descendants.

These are just some things to consider when determining how much life insurance you may need. We always recommend talking with a professional, as there may be other factors that determine what's best for you.

Learn More: How Much Life Insurance Do I Need?

Step 3: Explore Policy Types

There are many different types of life insurance that serve different purposes depending on your needs. Do you need term or whole life insurance?

For example, term life insurance is ideal when the need for coverage is dependent on a certain time frame, such as covering a mortgage or car loan.

The type of policy that is ideal for you is going to depend on several factors, including stage of life, financial obligations, goals for your beneficiaries and more.

Learn more about the different types of life insurance policies: Understanding the Different Types of Life Insurance

Step 4: Get Professional Support

Even when you take the time to determine what's important for your needs, assess proper coverage amounts and look into different types of policies, it can still be exceedingly beneficial to work with a professional who specializes in life insurance coverage. They can help you ensure that you've considered all factors and looked at all your options.

Our team of experienced life insurance agents at Twin City Underwriters can help you compare life insurance options and tailor your coverage to fit your specific needs.

At Twin City Underwriters, we have helped individuals for over 50 years with their insurance decisions, and we are committed to making sure our clients understand all of their options and choose the most suitable plan for their individual needs.

Life Insurance for Seniors: What To Consider and Knowing Your Options

Step 5: Review Before You Commit

Many individuals would rather skim than read the fine print of a life insurance policy document, but this is one of those times it's critical to do so. It is especially important if you had a brief conversation on the phone to understand that the policy you are purchasing is actually what you expected and that the appropriate coverage is there.

When you work with our team of licensed life insurance brokers at Twin City Underwriters, we are more than happy to sit down and do this with you, because we know that often these legal documents are not written in the easiest-to-understand manner, and we can go through them together so you know what each section means.

So be sure to check the fine print, and equally important is to revisit your life insurance policy regularly and make adjustments as your life changes. 

Get The Right Life Insurance Policy with Twin City Underwriters

It can be hard to know if you're making the right choice, because truly, what is ideal for one person or family is not always the same for another. At Twin City Underwriters, we recognize this need for relationship-based insurance guidance; we don't just ask you the questions on your insurance application, we ask you real questions to get to know you personally, because it's the only way to provide real support in these ever-important life decisions. 

Talk to our team today.

Are you ready to have a meaningful discussion about your financial needs? Call or email TCU today to set up a free, no-obligation appointment with one of our dedicated agents.

Choosing a life insurance plan can be difficult. Working with an insurance broker can help you find a plan that fits your needs. Schedule a one-on-one meeting with one of our life insurance brokers to get your insurance questions answered!