First-Time Life Insurance Buyer? Read This

Posted on 26 May, 2021

Business owners always think about the future; it’s how they stay competitive and create innovative products. However, most people have trouble thinking about what happens after they die.

If you’re a business owner, it’s time to start making preparations for when your company and family can’t rely on you. One of your top priorities is purchasing a life insurance policy so that your survivors have a source of income after you pass, especially if you haven’t paid off all your company’s debt.

For entrepreneurs without experience purchasing life insurance, here’s what you need to do to find the best plan for your relatives and company.

Understand the Different Kinds of Life Insurance

Before you can purchase the right Dayville Life Insurance plan, you need to learn about the different kinds. The two most common are permanent and term life insurance, which differ based on how long they last. Permanent life insurance plans provide coverage no matter how long you live, so these are a good option if you’re young and in good health. Term life insurance plans only last for a set period of years, generally between five and 30.

Figure Out Your Financial Situation

Your business’s finances may be so tied up with your personal finances that it’s hard to know where you stand financially. Work with your accountant and lawyer to determine what liabilities you have:

Mortgages
Student loans
Business loans
Unpaid lines of credit

Next, calculate the value of assets such as investments and savings accounts. Once you know how much debt you have, you’re ready to make an informed decision about your life insurance policy.

Research Different Plans

Researching different plans can be overwhelming if you don’t know what to look for when buying term life insurance. Start by examining each plan’s premiums, or how much you have to pay per month. Companies such as Dayville Life Insurance offer different premiums based on how long your plan lasts and how old and healthy you are. For example, if you are 30 and in good health, your premiums are lower than if you are 75 and experiencing many health issues.

Additionally, consider each plan’s tax details. If you take money out of your policy before you die, you have to pay taxes on the interest you’ve accrued. However, most plans don’t tax this income until your survivors collect your policy. Ask your accountant how much money your survivors will owe in taxes as you figure out how much debt your policy covers.

Be Honest With Life Insurance Companies

Life insurance providers such as Dayville Life Insurance cannot provide you with quality service unless you’re honest about your finances and health. Avoid making up facts or hiding health conditions, and check your medical records in case you’ve forgotten something.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360