Best Tips When Buying a Life Insurance Plan for the First Time

Having a life insurance investment plan is essential if you are looking to prepare for life’s unexpected events. This kind of policy will keep the loved ones you leave behind financially set and secure in the is to get life insurance. Whether you’re young and single, married, or raising children, you have several reasons to get a life insurance policy for yourself

As you are looking for an insurer, you might encounter different advice for buying a life insurance policy. Each list may provide you with different kinds of information, which can be confusing, especially if you are not familiar with the different terms and processes involved in applying for a life insurance plan.

To provide you with a more straightforward guide, here are some tips that you should learn about when getting a life insurance plan for the first time.

Assess Your Current Financial Situation

The first step you should take when considering buying a life insurance policy is to assess your financial health. Having a clear picture of your financial situation will help you determine the kind of life insurance plan you need and how much.

To do this, you need to think about your current financial situation and what you have in place to support yourself and your dependents. This includes your emergency fund, retirement fund, and other health and life insurance coverage you might be getting from work.

You should also consider the financial responsibilities at the moment and how you are sustaining them. For example, you might be the breadwinner of your family and are currently paying for your household’s expenses and education. You might also be paying a mortgage or saving up to make a big purchase in the near future.

Calculate How Much Life Insurance You Need

Once you have a picture of your current financial situation, you should start thinking about how much coverage you will need. The rule of thumb often given by professionals is to get an insurance policy that has a death benefit equal to 10 times your annual salary.

This advice for buying life insurance will help you ensure that the people you will leave behind will have enough resources to pay bills, support your children, pay for education expenses, and cover any other long-term needs.

You can also use the DIME method to determine how much life insurance coverage you need. This acronym stands for the following:

·         Debt – Think of all the debts you have, including your mortgage, student loans, credit card debt, car loans, and home loans.

·         Income replacement – Consider the people depending on your income for their living expenses. How long do you intend to support them using your death benefit?

·         Mortality – Take your burial wishes and costs into account when choosing a life insurance policy.

·         Education – If you have children, consider how long your death benefit can support their education.

Decide How Long You Need Coverage

Life insurance policies can last a certain period or a lifetime, depending on your needs. If you only need life insurance while you are on the way to achieving your goals—such as paying a mortgage or saving up for your children’s education—you can opt for term life insurance.

On the other hand, if you need a life insurance plan to cover burial expenses, income replacement, and debts, you should choose whole life insurance. This kind of policy will permanently cover you as long as you live, so you wouldn’t have to worry about what would happen to your loved ones when you pass away.

Compare Insurance Companies


Now that you have an idea of the type of insurance and the amount of coverage you need, you should look for a reputable insurance company in the Philippines. Doing so will help you be at peace knowing that your loved ones will get the lump sum you paid for once you pass away.

When looking at different insurance companies, make sure to compare each one’s track record. You can also find online reviews for each insurance company from their previous and current clients.

Additionally, you can compare life insurance quotes online to help you decide which company to choose. Make sure to look at the benefits offered by each company and if they meet your specific needs.

Work With a Trusted Advisor

If you are still having trouble deciding which insurance company to buy a policy from, you might have to work with a financial advisor. A financial advisor has your best interests in mind and can help you find an insurance policy that fits your budget and meets your needs.

On the other hand, you can choose an insurance company first then talk with an advisor who works in that organization. They can walk you through the different life insurance policies they offer and help you find one that best suits your requirements.

Get Ready to Answer a Lot of Questions

Once you have chosen an insurance company and have started working with a financial advisor, your application for a life insurance policy will start. Aside from providing your personal information and different documents, your agent will most likely ask you a lot of questions regarding your health.

Some of the questions you will be asked are about your weight, age, medical history, mental health, family medical history, and vices. These factors can affect how much you will pay for your life insurance.

Your insurance agent may also ask you questions regarding your driving record and the nature of your job. If you have a dangerous job or hobby, it may hike your insurance rate because you’re more of a risk to insure.

Always Disclose the Truth on Your Application


One of the greatest tips when getting a life insurance policy for the first time is to be truthful. Make sure not to omit, obscure, or change any of your information when filling out your life insurance application.

This is important because insurance companies validate every piece of information using third-party sources. If you were found lying on your application, you will not be approved and might even be banned by the insurance company.

Work with Allianz PNB Life and get a life insurance plan for the first time. We offer a variety of life insurance plans that fit your budget while ensuring that you get the coverage you need. To learn more about the life insurance plans that we offer, get in touch with us today.