Shopping for life insurance can be a lot like getting a root canal, applying for a new job, or signing up for the 401(k) plan at work. It’s annoying and you don’t want to do it, but you’ll feel a lot better once you do. Unfortunately, not everyone grins and bears it. As the Life Insurance Market and Research Association (LIMRA) notes, around 30% households remained uninsured in 2016. If you’re among them and worried about shopping for life insurance because you hate the very idea, don’t despair. Thanks to the internet and the many ways life insurance has changed over the years, it’s not awful as you think. Here are some of the reasons why, plus tips that can ensure your life insurance purchase is a positive experience.
1. Keep it simple.
One reason life insurance shopping causes so many headaches is the fact there are so many options and policies available. You can buy several different kinds of whole life, term life insurance, term life with return of premium, and others, even adding riders to cover all sorts of life situations.
Instead of letting too many options overwhelm you, figure out the type of life insurance you need first. While there are situations where whole life or another more complex type of policy could fit your financial plan, most families would be better off with a simple term life insurance policy that provides income replacement during their working years.
2. Figure out how much life insurance you need.
Can’t figure out how much life insurance you need to buy? You’re not alone. The fact that you can buy as little or as much as you want puts people off and ensures many people avoid the purchase altogether.
The best way to determine how much life insurance you need is to enter your information into a life insurance calculator. By sharing details like your income, family size, lifestyle, debt obligations, and health, you can get an idea of the right amount of coverage to buy.
3. Take your search online.
Gone are the days of sitting down with an actual person to map out your entire life insurance plan. Buying life insurance online is simple — and you don’t even have to leave your home. Instead of worrying about making an appointment, showing up, and “getting sold” on a policy, you can browse life insurance options on the internet in between games of Candy Crush – all without any pressure or high-pressure sales tactics..
Here at PolicyGenius, you can enter your information once and get quotes from several highly-rated life insurance companies, taking the bulk of the “work” off your plate. This way, you can compare options. Bonus: If you see a policy you like, one of our agents can jump on the phone and walk you through the rest of the process.
4. Remember your ‘why’.
Even if you hate the idea of shopping for life insurance, you already know the alternative is worse. If you avoid the purchase and something happens, you could leave behind a legacy of financial hardship and not much else.
That’s why it’s important to remember your “why” as you shop for life insurance. It may be an undesirable chore, but it’s a necessary one if you want to provide income replacement and financial protection in the event of your death.
We do things we don’t want to do for our kids and spouses all the time; buying life insurance should be no different.
5. Remember, policies could be more affordable than you think.
According to a joint study by nonprofit LIFE Foundation and LIMRA, many Americans drastically overestimate the costs of term life insurance coverage. When survey respondents were asked to estimate the costs of a 20-year, $250,000 level-term policy for a healthy thirty-year-old, they guessed an average of $400 for a policy that actually costs around $150.
With that in mind, one shouldn’t assume life insurance coverage is out of reach. If a healthy thirty-year-old can purchase a large term policy for around $150 per year or $12.50 per month, there’s hope for all of us!
Nobody likes shopping for swimwear, new jeans, funeral services, or life insurance. These purchases make us feel exposed, uncomfortable, and stressed – and all without providing the type of retail therapy we get when we shop for say, home décor or a new dress.
But sometimes you have to suck it up and do it anyway. If you hate shopping for life insurance, it’s time to do what’s right – not what’s easy.
Still not sure how to go about finding the best policy? We’ve got a full guide to shopping for life insurance here.