March 17, 2021
2 minute read

Tips for Buying Life Insurance

Life insurance can be a critical part of your financial portfolio, but finding the right plan can be complicated if you’re a first-time buyer. Here are three quick tips for buying life insurance to help you make sense of all the choices you’ll face.

Life Insurance Tip #1: Determine How Much Life Insurance Coverage You Need

The goal in calculating the amount of life insurance coverage you need is to make sure your family receives enough to pay bills and maintain their standard of living. One general rule of thumb is to purchase enough coverage to replace five to seven years of your salary. If you have very young children or significant debt, you might aim to replace up to ten years of your salary.

Another approach is more holistic. First, make a list of all current and ongoing expenses, like the mortgage payment, utilities, student loans, credit card debt, healthcare costs, and childcare. Then, estimate future expenses, like college tuition or your spouse’s retirement. Next, itemize any significant assets you own that could provide cash or income. Having this comprehensive list can help you gauge how much your family will need in the event of your death.

Life Insurance Tip #2: Find the Right Type of Policy

Once you’ve determined the amount of coverage you need, you’ll have to decide which type of policy is right for your family.

  • Term life insurance generally offers the highest benefit for the lowest cost. It covers a specific period of time, usually 10, 20, or 30 years. If you decide later that you’d prefer a more permanent plan, you may be able to convert your policy.
  • Whole life insurance is also called ‘permanent’ life insurance. These plans last as long as you continue to pay your fixed premium amount. Part of that premium goes towards cash value, allowing you to accumulate tax-deferred savings.
  • Universal life insurance is another type of a ‘permanent’ life insurance. It includes a combination of cash value accumulation along with flexible premiums and riders. Plus, you may have the ability to adjust your benefit amount as your needs change.

Life Insurance Tip #3: Hang onto Your Paperwork

Although it might seem that once the paperwork is signed you’re done, you aren’t. Make sure your family knows about your life insurance policy and where it will be kept. Insurance companies aren’t required to find out if policyholders are still alive, so it’s up to beneficiaries to come forward and make sure they receive their benefit.

You can scan and store documents electronically and/or make photocopies to keep at home. Then, save hard copies someplace safe, such as with your attorney, in a safe deposit box, or in a fireproof safe.

Bonus Life Insurance Tip: Talk to a Licensed Life Insurance Agent

HealthMarkets licensed agents can help by not only offering tips for buying life insurance but also finding the right plan for you and your family. There’s no cost to you for agents’ services. Call 24/7 at (800) 827-9990, or meet with a local, licensed insurance agent today.

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© 2022 HealthMarkets Insurance Agency. All rights reserved.

To send a complaint to Medicare, call 1-800-MEDICARE (TTY users should call 1- 877-486-2048), 24 hours a day/7 days a week). If your complaint involves a broker or agent, be sure to include the name of the person when filing your grievance.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY users should call 1- 844-704-7357), 24 hours a day/7 days a week, to get information on all of your options.

Attention: This website is operated by HealthMarkets Insurance Agency, Inc. and is not the Health Insurance Marketplace® website. HealthMarkets Insurance Agency, Inc. is licensed as an insurance agency in all 50 states and DC. Not all agents are licensed to sell all products. Service and product availability varies by state. Sales agents may be compensated based on a consumer’s enrollment in an insurance plan. No obligation to enroll. Agent cannot provide tax or legal advice. Contact your tax or legal professional to discuss details regarding your individual business circumstances. Our quoting tool is provided for your information only. All quotes are estimates and are not final until consumer is enrolled. Medicare has neither reviewed nor endorsed this information.

HealthMarkets Insurance Agency offers the opportunity to enroll in either QHPs or off-Marketplace coverage. Please visit HealthCare.gov for information on the benefits of enrolling in a QHP. Off-Marketplace coverage is not eligible for the cost savings offered for coverage through the Marketplaces.

This information is not a complete description of benefits. Call the Plan’s customer service phone number for more information.

47373-HM-0421

© 2022 HealthMarkets Insurance Agency. All rights reserved.

To send a complaint to Medicare, call 1-800-MEDICARE (TTY users should call 1- 877-486-2048), 24 hours a day/7 days a week). If your complaint involves a broker or agent, be sure to include the name of the person when filing your grievance.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY users should call 1- 844-704-7357), 24 hours a day/7 days a week, to get information on all of your options.

Attention: This website is operated by HealthMarkets Insurance Agency, Inc. and is not the Health Insurance Marketplace® website. HealthMarkets Insurance Agency, Inc. is licensed as an insurance agency in all 50 states and DC. Not all agents are licensed to sell all products. Service and product availability varies by state. Sales agents may be compensated based on a consumer’s enrollment in an insurance plan. No obligation to enroll. Agent cannot provide tax or legal advice. Contact your tax or legal professional to discuss details regarding your individual business circumstances. Our quoting tool is provided for your information only. All quotes are estimates and are not final until consumer is enrolled. Medicare has neither reviewed nor endorsed this information.

HealthMarkets Insurance Agency offers the opportunity to enroll in either QHPs or off-Marketplace coverage. Please visit HealthCare.gov for information on the benefits of enrolling in a QHP. Off-Marketplace coverage is not eligible for the cost savings offered for coverage through the Marketplaces.

This information is not a complete description of benefits. Call the Plan’s customer service phone number for more information.

47373-HM-0421

© 2022 HealthMarkets Insurance Agency. All rights reserved.

To send a complaint to Medicare, call 1-800-MEDICARE (TTY users should call 1- 877-486-2048), 24 hours a day/7 days a week). If your complaint involves a broker or agent, be sure to include the name of the person when filing your grievance.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY users should call 1- 844-704-7357), 24 hours a day/7 days a week, to get information on all of your options.

Attention: This website is operated by HealthMarkets Insurance Agency, Inc. and is not the Health Insurance Marketplace® website. HealthMarkets Insurance Agency, Inc. is licensed as an insurance agency in all 50 states and DC. Not all agents are licensed to sell all products. Service and product availability varies by state. Sales agents may be compensated based on a consumer’s enrollment in an insurance plan. No obligation to enroll. Agent cannot provide tax or legal advice. Contact your tax or legal professional to discuss details regarding your individual business circumstances. Our quoting tool is provided for your information only. All quotes are estimates and are not final until consumer is enrolled. Medicare has neither reviewed nor endorsed this information.

HealthMarkets Insurance Agency offers the opportunity to enroll in either QHPs or off-Marketplace coverage. Please visit HealthCare.gov for information on the benefits of enrolling in a QHP. Off-Marketplace coverage is not eligible for the cost savings offered for coverage through the Marketplaces.

This information is not a complete description of benefits. Call the Plan’s customer service phone number for more information.

47373-HM-0421