6 Key Things To Know When Buying Life Insurance For The First Time

Life insurance is an agreement between a policyholder and an insurance company where the insurer promises to pay a lump sum benefit to the beneficiaries in exchange for annual premiums upon the death of the insured. The cover could also be extended to pay benefits in the event of permanent disability and/or critical illness.

It can be seen as a long-term investment because when life happens, it helps protect your loved ones from the finance shock that could happen if a breadwinner passes away.

As a first-time life insurance buyer, here are some important things to know.

What To Know When Buying Life Insurance For The First Time

1. Know why you need an insurance policy

When we know why we want to do things, we have a better understanding of what is at stake. A life insurance policy is important and needed at some point in our lives. Perhaps you’re young and asking “Should I get life insurance in my 20s?”. Sure. Life can happen at any age and as long as you have someone somewhere who depends on you-you need Life Insurance.

2. Compare insurance companies

There are several insurance companies like Leadway Assurance with attractive life insurance policies. It is crucial to weigh your options, compare prices, coverage, benefits, customer reviews, etc.

3. Review your insurance needs

Knowing what and who is dependent on you lets you know what kinds of coverage you would need when getting a life insurance policy. You can determine this also by speaking to an insurance agent or advisor as they can help you navigate better.

4. Decide the right type of Life insurance for you

There are life insurance policies like term life insurance, whole life insurance, universal life insurance, cash value, and so on. Each of these types of life insurance policies has its pros and cons. Decide which type suits you for the long or short term.

Learn more about the difference between term life insurance and whole life insurance

5. Know what affects your life insurance policy rate

Various insurance companies have different factors that affect life insurance. Your age and your health can be a factor in determining the rate that you pay. The rate to be paid is also determined by the type of policy you go for and how large the death benefit is.

6. Consult with a financial advisor

Getting the opinion of a financial advisor gives you access to professional advice especially when it is coming from someone that knows your financial history well enough.

A financial advisor helps you factor in your finances, your needs, and the needs of your loved ones and put them into perspective.

Review your life insurance coverage with your financial advisor and don’t just do this when buying an insurance policy for the first time but regularly to ensure that the coverage is keeping up with changes happening with your needs and income.

Ready To Get Life Insurance?

Leadway Assurance offers a pre-priced and affordable Term Life Plan that costs only N10,000 yearly with up to N1,000,000 in benefits.  Things happen and some are just outside our control. Having a term life insurance plan cushions the financial fall when you are no longer around. Sign up and buy now on our website. Looking for something else? Request a callback today.

OA

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