Buying NH Life Insurance: A How-To Guide

August 15, 2020

For many, thinking of purchasing NH life insurance is stressful. With insurance comes the idea of sickness, death, and other adverse life events. On top of that, the inner workings of insurance can cause stress in people unfamiliar with the options. The fact you only deal with insurance after something bad happens doesn’t help either. It shouldn’t be that way.

Life insurance is designed to protect and benefit policyholders. Life insurance is a safeguard for Americans everywhere to ensure that life will go on for those around them should they pass on. Here’s a quick how-to guide for those considering insurance, but are not quite sure where to begin.


Choosing the amount

Choosing the ideal amount of life insurance depends on a variable of factors. No two households are alike, so what worked for your neighbors or even your parents, may not be right for you. The best tactic in deciding on an adequate amount of coverage is to consider how much money your family would need to live. When making this calculation, review your current income, debts, mortgage, and educational costs (current and future).  Other considerable factors that you may want to account for include: taxes, disasters, and illnesses that may pop up.


Understanding the types

As can be expected, not all life insurance policies are the same. However, in general, there are three types of policies: term, whole life, and endowment. Each of these policies has its pros, depending on your lifestyle.

Term insurance can range from one year or more with benefits paid only upon death within the stated term. Whole life, as implied, provides coverage throughout your entire life. Endowment insurance is unique because it chooses a specific age. If you live to that age, then you will earn a sum or income for yourself. However, if you die before that age, the sum goes to your beneficiary.

For a more in-depth look into different life insurance policies, be sure to check out our previous article with helpful hints on understanding the pros and cons of each type.


Out-of-pocket cost

The cost of life insurance isn’t the amount you pay for it. The cost of life insurance is the difference between how much you pay and how much you get back. For example, if you receive no compensation from your life insurance once paying a premium, then the cost of life insurance is equal to the paid premium. However, if you receive a cash value after paying the premium, your cost is the premium minus the received value. Dividends are another factor that can lower the cost of life insurance on participating policies.


Buying NH life insurance is an important decision to make. Even when life insurance doesn’t benefit you, it’s a way to look after your loved ones. For more information on life insurance policies and which one is best for you, contact Brownell Financial Services today to prepare for tomorrow.