Secure Insurance Group explains how to buy life insurance in six steps

How to Buy Life Insurance in 6 Steps

Buying life insurance could be the most significant purchase your family makes. Secure Insurance Group is a reliable source for Missouri life insurance. From term to indexed universal, we offer solutions that are designed to fit your circumstances — helping you prepare for and protect your financial future. When you’re ready to begin the buying process, explore our products and follow this six-step guide.

1) Determine Your Needs

First and foremost, you can use the DIME formula (debt, income, mortgage, education) as a base for calculating your life insurance needs. Once you estimate your debt, monthly living expenses, final expenses, and future expenses (like college tuition), you’ll have a clearer picture. You’ll also want to figure out the following: how long will you need replacement income? And, how much income would it take for your survivors to take care of immediate and future expenses?

2) Get a Quote from Different Companies

Next, you’ll want to get a quote from different insurers. Life insurance costs may vary a lot from company to company, and from product to product. The companies price every policy depending on your age, gender, healthy history, and tobacco use.

Getting quotes from multiple companies allows you to compare rates, benefits, and policy features so you know you’re getting the best deal on coverage. FYI, TransAmerica, Prudential, MetLife, and Principal are some of the top highly-rated life insurance companies — meaning they’re reputable. 

3) Choose a Company with a Good Rating

After getting a quote from different companies, choose one with a solid financial rating. Insurers with the highest ratings offer more certainty that they’ll have the revenue to pay your claim. You can check out an agency like A.M. Best Company to get financial strength ratings of the companies you’re interested in. 

4) Schedule an Appointment with an Agent

After you narrow it down to a certain company, it’s time to talk to a licensed agent. You can make an appointment with an independent professional who will review your situation and discuss more details regarding your needs. Whether you prefer to meet in person, online, or by phone, there are many options to help you get connected with a local agent.    

5) Make Sure You Can Afford the Premium

Don’t forget to double-check! Verify how much income you’re earning and how many expenses you have to manage — making sure that you’re getting an affordable rate on life insurance. This brings you to our sixth and final step of the buying process.

6) Read All the Fine Print

After you’ve been issued a life insurance policy, be sure to read it through. We always want our clients to understand what they buy. If you don’t like what you see, most state laws are required to give you a Free Look Period to cancel your policy and get a refund of any premiums paid. Your policy terms will tell you exactly how long your period will last — it varies by insurance provider — but it’s typically 10-30 days after the issue date.

Learn More from Secure Insurance Group

Life insurance can be complex, but with some research and clarification, it becomes much more simple. The key things are to know what you need, how much is a fair rate, and how it works once you own a policy. To learn more about life insurance, please browse our website, and feel free to call us with any questions.