Is it time to buy life insurance?

If you have dependents, the answer is yes.

The younger you are, the less you pay for life insurance, so it’s important to start thinking about life insurance as soon as you need it. That starts with assessing who depends on you for all or part of their living.

Figuring out your finances

Step one in deciding how much and when to buy life insurance is figuring out how much you need, and that is based on your family’s finances. At approximately 20,000 a year or above, you should be thinking about paying final expenses and clearing any outstanding debts.

Have your medical history ready

Medical history can greatly affect price. Keeping excellent medical files can help you when shopping for the best prices on life insurance. Steps like stopping smoking at least a year prior to the application can only help when you are applying for life insurance. When discussing medical history with your agent, it’s important to be clear and complete with your history, so that they can find the best policy available for your circumstances.

Knowing your business

A risky job can be an issue. You need to discuss at length with your agent your options. A race car driver may pay more than a plumber, or can be turned down for coverage. It’s best to be prepared for the possibility.

Know your family’s history

Life insurance companies will ask about your family’s medical conditions, specifically your first degree relatives like mother, father and siblings.

What are your goals?

The most important factor in determining the type of policy you need is determining what you want that policy to do for your family. Is it meant to pay for final expenses or send your child to college? This is where an agent can be most helpful in finding you the best rate to meet those goals.

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