6 reasons why you should think of purchasing  life insurance

There are a number of reasons why you should buy insurance. To ensure financial security for yourself and the ones you care about you take decision of purchasing insurance is for all about . Why life insurance is essential, and who need it are vital things to know. 

Why is life insurance important for you?

Life insurance will certainly give protection to your spouse and children from the potentially devastating financial losses that may result if something unsavoring happens to you. It will certainly give you financial security, helps you to pay off debts, helps you to pay living expenses, and helps you to pay any medical or final expenses.

Life insurance provides cash if you need it most.

Your life insurance policy can deliver a specified sum of money in case you need it. Your family will receive your policy payout immediately upon your death. Moreover, that death benefit is generally not under federal income taxes. As for example, a $600,000 policy gives $600,000 in death benefit that proceeds directly to your beneficiary.

What are the steps in the insurance buying process?

First of all adjust your goals according to your needs, determine how much insurance you need in order to meet your goals over time, and determine how much you can afford to pay.

What type of insurance can help you satisfy your needs?

After you consider buying initial premium payments, think of possible increases in premiums over time, any additional death benefits and any living benefits that can be utilized before you die. It is important to chalk out the such type of insurance policy or combination of types that best meets your demands. It is worth remembering that working with a financial professional or agent can help you make this whole process easier. The differences between types of policies, help you calculate the amount you will receive, and present potential benefits that may best suit your needs are explained to you by a financial professional or expert or life insurance agent to help you understand better.

6 reasons to buy life insurance:

In terms of the assurance that you have provided a legacy, life insurance can give you lasting peace of mind  The main reason is that the right coverage can offer a valuable combination of benefits, many guaranteed by the claims-paying ability of New York Life enabling you and your dear ones know exactly what you’re receiving. Of course, you are advised to make a long-term commitment to paying premiums and keeping the policy in force. Here are some of the most common factors that may affect buying life insurance which are listed below:

1. Guaranteed protection

If you have a family or a business, or others who depend on you, or combination of these factors, the life insurance benefit of a whole life policy acts as a financial safety process. Upon your death, your beneficiaries will receive a lump-sum payment that is guaranteed to be paid in full provided all premiums are paid and there are no outstanding loans.  It is a vital protection that you can count on for your loved ones when needed.

2. Income replacement

Think of an unexpected situation if the income you provide your family suddenly disappeared.  Your  life insurance help make sure your loved ones have the money they need to help -

Pay the mortgage

Cover tuition or other college expenses

Afford childcare, health care, or other services 

Preserve a family business

Eliminate household debt

3. Tax-free benefit

Your beneficiaries will certainly be able to enjoy every penny you leave them because the benefit of a life insurance policy is generally passed along federal income tax free.

4. Guaranteed cash value growth

Your whole life policy builds cash value that is guaranteed to grow—tax deferred—and it can help meet a variety of financial goals because you pay your premium for funding a child or grandchild’s education, supplement retirement income, paying off a mortgage, protecting existing assets and establishing an emergency fund.

5. Dividend potential

You will be eligible to receive dividends is one of the main benefits that comes from purchasing whole life insurance from New York Life insurance.  Though it is not guaranteed when dividends are awarded but you can take them in cash, use them to buy paid-up additional insurance that increases your coverage and cash value, or use them to offset your premiums.

6. Optional riders

To tailor a whole life policy accordingly to your individual needs there are several methods. Without further underwriting to pay your premiums in case you become disabled, you can use riders to purchase additional protection for an additional cost  using some of your face amount in order to pay for chronic diseases, or to purchase coverage for your children. Your life insurance agent can help you decide whether any of these riders are right for you.

Beginners buying life insurance? 

If you are a beginner and you have never purchased life insurance before but now you want to buy a life insurance policy, there is a good chance you have lots of questions and curiosity. Fortunately, we perform this job for beginners for a very long time, so we have put together a mini How-to Guide to help you get started.

First of all know what you want your coverage to do.

As you get set in motion, it can be helpful to reconsider the reasons why you are buying a life insurance policy. Is it for replacement for your income, paying off your mortgage, or creating an inheritance for your loved ones? Whatever the reasons are, you are advised to keep them in mind as you select your coverage.

Figure out how much protection you need to cover in your insurance policy.

There are a lot of formulas and policies you can use to determine how much insurance you need. However, it often be tailored to the reasons you need coverage in the first place. For example, you can add up your annual expenses and multiply that by the number of years you have until retirement if you need income replacement, 

You better calculate the total cost if you want to make sure your loved ones have enough money to go to college, to pay for a wedding, take over your business, fulfillment any of your other long-term goals. This calculation will certainly give you a ballpark idea. But we strongly recommend you to review your results with a New York Life agent before making any final decision.

Decide how much insurance you can afford.

It is essential to make sure that your life insurance premiums fit on your budget.  It is worth keeping in mind that some life insurance premiums increase over time, so it is convenient to make sure you can afford them today—and tomorrow.

Find the right policy.

You will need to find the right coverage, once you figure out how much coverage you will need,  Your main options are term life, which may better adjust your current budget, or whole life, for permanent coverage  for cash value.

Learn the lingo.

Understanding how life insurance works can be confusing with terms like "premium," "dividend," "beneficiary," and so on.  We have prepared a glossary of insurance terms to help you understand this whole process, 

Check out the insurance provider.

An insurance policy is  good when the company that backs it is good. so it is mandatory to make sure you choose a company that has a proven history of keeping its promises and it is financially strong and there is enough for you  and your loved ones to offer when needed.

How to purchase life insurance can be a matter of real challenge if you have never done it before, figuring out . Keeping this in mind we hereby advise first-time buyers to work with a New York Life agent. Doing this way you will have an experienced professional to guide you through the whole process and make sure you have all the information you need to make the best decision.

Common questions asked by beginners regarding life insurance:

Who buys life insurance?

Anyone willing to protect the lifestyle and financial well-being of loved ones buys life insurance.

How many days does it take to get life insurance?

Though the amount of time varies by policy and depends on types of policies, it generally takes two weeks to a month from submitting your application to having your policy issued.

Where can I buy life insurance?

There are lots of ways and methods you may choose to purchase life insurance, such as at your workplace or online. However, we have a strong and firm belief that a more personal approach is best way. Working with an insurance professional or insurance agent you can be sure all your curiosity are satisfied that may help you ultimately decide the right coverage for you and your family.

What should I do next once I decide on a life insurance policy?

Make sure you review your policy with your agent and understand all the terms and conditions once you have decided on your coverage and are ready to move forward. Continue doing the same with your completed application so that you can be sure all your answers are complete and accurate.

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