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It’s easy to feel intimidated by the prospect of purchasing a life insurance policy. The countless options available can cause confusion and may not do much to help you understand what you’re reading. However, once you’re able to go through policies point-by-point, you’ll realize that life insurance is a great thing to have and can give you incredible peace of mind.

Consider These Things Before Getting Life Insurance

There are several things that you need to consider before getting life insurance. Continue reading to learn about a few questions it’s important to look into that will help you understand your life insurance requirements and make the right decision.

Make an Assessment of Your Present Financial Situation

First of all, assess your present financial situation before you opt for a life insurance policy. A clear assessment will help you understand what you have in place to support and protect your family and those who depend on you financially.

Next, is there anything your family can depend on to meet expenses and repay debts in case of your premature death? This assessment process should ensure that you have enough life insurance coverage to provide your family with much-needed financial security after your death.

Consult a financial agent who can evaluate your insurance needs and help you choose the right life insurance.

Evaluate the Coverage You Want

It is crucial to evaluate how much coverage you need. Generally, it has been seen that people only calculate how much money would be needed to pay off their debts, such as home loans, education loans, etc. However, this is a mistake.

Besides this, you should also consider how much more money would be required by your life partner to cover expenses such as paying bills, supporting children’s education, or fulfilling other long-term needs. One way of calculating this is to have a policy with a death benefit equal to 10 times your annual income.

However, your financial requirements or goals might require you to go for more coverage than this. Get in touch with a financial advisor. They can help you come up with a more precise number.

Choose a Life Insurance Policy Type

Typically, you have to choose between different types of insurance policies. For instance, you have to select what is best suited for you; a term life policy that provides coverage for a limited period, such as 10, 20, or 30 years, and is an affordable way to get coverage until you reach a certain financial stage; or whole life insurance, which provides lifelong coverage and is expensive but builds a cash value. Choose a term or permanent insurance policy after assessing your needs and financial goals.

Choose a Cover That You Can Afford

After assessing your needs and financial goals, calculate how much it will cost you in terms of annual premiums. Examine if you can afford to pay premiums for the entire policy term, as a policy won’t do you any good if you can’t afford to pay all the premiums.

Remember, the first goal of an insurance policy should only be protection. You could subsequently go in for a savings-cum-protection plan if you think you can pay high premiums regularly.

In addition, pay special attention to policy-related clauses such as internal costs, guaranteed vs. non-guaranteed parts of the policy illustration, etc. This will help you avert any misjudgment.

Know What Affects Your Life Insurance Rate

Your life insurance policy premium is affected by your health status and age. Usually, the younger you are, the lower the premium will be. It also depends on the type of policy you get and what constitutes death benefits. In the case of a term life insurance policy, the length of the term plan determines your premium.

Compare Insurance Companies

You need to compare life insurance companies for the best rate. It is advisable to get multiple quotes from top-rated insurance companies. This will help you easily decide on the type of insurance policy you need. You can also get in touch with an independent financial advisor working with several insurance companies to help you find the best insurance plan at the best price.

Prepare to Answer a Lot of Questions

Prepare yourself to answer a lot of questions while applying for a life insurance policy. The policy premium you get from an insurance company is just the beginning.

Before you get the policy, you will have to fill out an application and divulge varied information ranging from age to weight, medical history to tobacco usage, and more.

You might also have to answer questions related to your driving record and whether you have a life-threatening job that can put your life at risk at any given point in time. All this information will be used to evaluate your insurance premium.

Be Careful With the Information You Provide

Be careful with your life insurance policy application. It is essential to be truthful while you provide all the information to your insurer.

Remember, if you try to hide or alter any information, your insurance company will come to know as it uses third-party sources to perform a thorough background check on the integrity of the information you provide.

For instance, your insurer has the right to access your medical records, drug history, motor vehicle reports, and more. Moreover, you might also need to undergo a medical examination, which may include blood and urine tests, among many others.


Ensure the life insurance policy you select covers you as well as your family’s financial goals. Furthermore, make certain that you are not underinsured by selecting a lower sum assured than is required for your financial situation.

When you’re ready to get the best possible life insurance policy, look no further than South Star Wealth Management. At South Star Wealth Management, we put you first, so you can be guaranteed to get the best service and the best policy. Contact us today for more information.