8 Critical Steps to Consider When Buying Life Insurance in NY

Many New Yorkers with life insurance draw appreciable peace of mind from taking out this policy on their loved ones. The protections are worth the investment, but it’s important that you select the right coverage type for your unique needs. As you shop for life insurance in NY, here are important factors to keep in mind.

#1. Do You Need Life Insurance?

Most people need this protection, but a few have enough assets to cover their loved ones without it. You likely could use a life insurance plan if:

  • You have long-term debts like mortgages
  • You don’t have enough wealth to pay your estate taxes and other expenses in case you passed away

#2. How Much Coverage Do You Need?

Take these steps to work out your life insurance coverage in NY needs:

  • Sum up all financial resources available to your beneficiaries, such as social security, group life insurance, and investments
  • Sum up your beneficiaries’ financial needs after your passing, including income, loan payments, and final expenses
  • The difference between your survivor’s financial resources and their financial needs is the life insurance amount you should buy

#3. Do You Need Cash-Value Life Insurance?

Some policies offer cash value accumulation besides paying the death benefit.

#4. What Type of Life Insurance Best Suits Your Needs?

When looking to buy life insurance in NY, consider your unique needs. A term policy, which is cheaper, may suffice if your needs are short-term and you’re on a budget. However, choose a whole or universal policy for lifelong coverage and cash value accumulation.

#5. Do You Need Additional Coverage?

You can expand your life insurance coverage by purchasing a rider. For example, if you add a waiver of premium to your policy, you’ll enjoy coverage without paying premiums even after you’re disabled. Similarly, purchasing the guaranteed insurability rider allows you to buy additional coverage in the future regardless of your health status. If your policy doesn’t come with these provisions, consider adding them to maximize your protection in case your health situation changes.

#6. How Can You Save Money on Life Insurance Premium?

You can reduce your life insurance costs by shopping around and requesting quotes from multiple providers. Also, talk to your insurer about other ways to save money without necessarily paying lower premiums.

#7 How Do You Wish to Pay Your Premiums?

Consider the benefits of paying once a year. Annual life insurance payments are generally cheaper than small installments. If you pay smaller amounts frequently, you’ll usually bear a fairly high additional cost.

#8 Does Your Family Know About Your Life Insurance Policy?

After you’ve obtained your policy, let your beneficiaries know who your insurer is and where to find a copy of the paperwork. Some families have missed out on death benefits after a policyholder passed on without informing them of the coverage. Ensure that your family and any other listed dependents can easily access the documents necessary to file a claim.

Familiarizing yourself with these considerations is an important step toward getting a life insurance plan best suited to your beneficiaries’ future financial needs. If you’re looking for the right life insurance coverage, contact our experts at Premier Risk, LLC to get started! We serve Long Island and neighboring cities in New York.