Life insurance can seem overwhelming, but the right conversation with an agent can help to bring clarity. Many delay purchasing it, assuming it’s complicated, costly, or unnecessary. Yet, life insurance can be a powerful tool for long-term financial security, helping to provide stability and peace of mind.
Rather than viewing it as a daunting decision, see it as a chance to take control of your financial future. A good agent can guide you, but active participation is key. By focusing on the Three E’s—Engage, Educate and Empower, you can turn a routine meeting into a valuable learning experience.
Engage: Start the right conversation.
The first step in securing the right life insurance policy is engaging with a knowledgeable and trustworthy agent. Not all agents are the same—some are independent, representing multiple insurers, while others work for a single company. Regardless of who you choose, you want an agent who prioritizes education over sales.
Look for agents with strong reputations: Look at reviews or ask for recommendations from friends, family, or financial professionals to find someone you can trust.
Be upfront about your goals: Whether you’re looking for income protection, debt coverage, or legacy planning, being clear about your needs helps guide the conversation.
Choose an agent who values open communication: A good agent should explain your options clearly, answer your questions thoroughly and provide all necessary details without pressure or urgency.
By engaging in an open and informative dialogue, you set the stage for a positive experience where you are in control of the conversation.
Educate: 5 key questions to ask your agent.
Once you’ve found an agent you trust, it’s time to educate yourself on your options. Life insurance isn’t a one-size-fits-all product and asking the right questions ensures that you select the best policy for your needs.
- What types of life insurance are available and which is best for me?
The two main types of life insurance are term life and permanent life insurance (such as whole or universal life). Term life is more affordable and lasts for a set period, while permanent life builds cash value and lasts a lifetime. Your agent can help you determine which option aligns with your needs.
- How much coverage do I need to protect my family and financial goals?
Your coverage should account for debts, income replacement and future expenses like education or a mortgage. A general guideline is 10-15 times your annual income, but the right amount depends on your situation. Your agent can help assess your financial picture.
- What factors influence my premium costs?
Premiums depend on factors like age, health, lifestyle and coverage amount. Younger, healthier individuals typically get lower rates, while high-risk habits like smoking can increase costs. Knowing what affects your premiums can help you plan and potentially reduce costs.
- How flexible is my policy if my needs change?
Some policies allow coverage adjustments or have riders that provide extra benefits, like access to funds for medical expenses. If you anticipate significant life changes—marriage, children, or a home purchase—ask about options to modify your policy over time.
- What happens if I miss a payment or need to pause my coverage?
Many insurers offer grace periods (typically 30 days) before a policy lapse and some allow reinstatement after a lapse. Understanding these terms helps you avoid losing coverage during financial difficulties.
Empower: Make an informed decision.
Once you’ve engaged with an agent and educated yourself about your options, it’s time to make a confident, informed decision.
Compare policies carefully: Don’t settle for the first option. Look at different plans and insurers to find the best fit for your needs and budget.
Align coverage with personal needs: Ensure the policy you choose provides the right protection for your family, debts and future goals.
Review your policy regularly: Life circumstances change and so should your life insurance. Schedule periodic reviews to update your coverage as needed.
By taking control of the process and making thoughtful decisions, you ensure that your life insurance policy truly serves its purpose—providing financial security for those who depend on you.
Key takeaways
Life insurance is more than just a financial product—it’s a long-term strategy that helps to protect your family and future. By following the Three E’s—Engage, Educate and Empower, you can transform what might seem like an overwhelming process into a proactive and informed decision.
Engage with the right agent to start a meaningful conversation.
Educate yourself by asking the right questions and understanding your options.
Empower yourself to make the best decision for your financial future.
Approaching life insurance with this mindset ensures you’re not just purchasing a policy but investing strategically in security and peace of mind.
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Foresters and their employees and life insurance representatives do not provide, on Foresters behalf, financial, estate, legal, or tax advice. The information given here merely summarizes our understanding of current laws and regulations. Clients and prospective purchasers should consult their financial, estate, tax, or legal advisor regarding their situation.
424478 CAN/US (02/25)
