A Four-Step Guide to Getting Life Insurance

It’s tempting to put off buying life insurance. You need to think about your own death, or the death of a loved one, and figure out a topic that’s unfamiliar. That combination can make it easy to procrastinate. 

But taking these four simple steps can get you on the road to protecting your family from the unexpected. Review these life insurance tips to get started.

At Farm Bureau, we’re experienced in providing life insurance coverage to people of all ages and life stages. Talk to a Farm Bureau agent to get the answers to your questions.

Step 1: Understand What Life Insurance Is

Life insurance is a type of protection where you pay money regularly, called premiums, to an insurance company. If you die while your policy is in place, the company pays money to your beneficiaries, called a death benefit. They can use this money for ongoing costs, major purchases, funeral expenses, donations in your memory or other needs.

Step 2: Learn the Types of Life Insurance

Term life insurance and permanent life insurance are the two main types of life insurance.

Term Life Insurance

Term life insurance gives you coverage for a certain time period, often 10 to 30 years. You may want term life insurance to cover key life stages where others depend on your income. For example, it could cover:

• The time you and your spouse are paying down a mortgage, if it would be hard for one of you to cover payments on your own.
• The time while your children are dependents, so their expenses and education are covered.

When you have a term life insurance policy, the coverage ends when the time period expires. Because a death benefit is not guaranteed (in fact, the best situation is it never gets used), it’s usually more affordable than permanent life insurance.

You can stack different lengths of term life insurance so you have the right amount of coverage for different periods time. 

Permanent Life Insurance

Permanent life insurance covers you for life, as long as you pay the premiums. When you pass away, a death benefit is paid to your beneficiaries. 

These policies may also include cash value that can earn interest. The cash value may increase the amount your beneficiaries receive. You may also be able to withdraw the cash value or take out a loan against it. 

There are different types of permanent life insurance that offer different blends of life insurance coverage and cash value. It’s best to talk to a professional about the pros and cons of different types of life insurance policies, since there are a lot of options and amounts to consider.

Step 3: Determine How Much Coverage You Need

Your need for life insurance is unique to you and your life situation. You’ll want to make sure your family can replace your salary to meet their daily needs, as well as set them up for success in the future. Many people want their spouse to be able to pay off the mortgage, invest in children’s education and continue to plan for retirement should they pass away. If those aren’t applicable to you, you may think about what kind of legacy you want to leave. A Farm Bureau agent can help determine the right level of coverage for you.

Step 4: Work With a Life Insurance Professional

While it’s possible to go online and build out a life insurance policy on your own, there’s no replacement for working with a trusted member of your community who will seek to understand your goals and dreams. Online searches offer up the most common answers, but a Farm Bureau agent offers personal recommendations that fit your life and budget.

Talk to a Farm Bureau agent who will help you find the protection your family needs.