During the course of Life Insurance Awareness Month, we’ve been focusing on understanding the ins and outs of life insurance.
We’ve discussed why life insurance is necessary, who needs it, what kinds of protection are available and even defined key terms so you can know exactly what you’re looking at!
So what’s next? Application.
Dale Carnegie once said, “Knowledge isn’t power until it is applied.”
There’s an obvious difference between knowing about life insurance and actually being insured. So how do you get started? If you’re looking at getting life insurance for yourself or a loved one, here are 3 helpful steps to consider.
1. Reflect on what’s important. Now this may seem like an obvious thing to do, but it’s absolutely critical that you think about the areas of your life that you really care about and nail those down. Ask yourself, “If something happened to my ability to earn income, who would be affected and who do I specifically want to be cared for?” Your answer(s) to this question will help determine what needs to be protected.
2. Determine your budget. After you’re done with the first step, it’s time to put your money where your mouth is. How much would you be willing to set aside to ensure those things are protected? Run a thought experiment in your mind: “Would I be willing to set aside $50 per month? $100? $200? $400?” This process will help you ‘take the temperature’ about what you’re willing to commit.
3. Seek guidance. Find a licensed and trained financial professional you trust and who offers life insurance products to give you an accurate quote or illustration based on your situation. They will be able to guide you on finding the right type and the right amount of insurance to fit your needs.
No one likes to think about what would happen in the event of a premature death, disability, or critical illness. But whether we think about it or not, the reality is the same: people we care about will be affected by the loss of an income earner. Remember, life insurance isn’t something we can buy in a store. You have to apply! Owning life insurance is more of a privilege than it is a right. So don’t merely spend time accumulating knowledge. We encourage you to apply that knowledge…and in this case, apply for life insurance!