Tips for Buying Life Insurance (Whether You Already Have Some or Not)

Tips for Buying Life Insurance (Whether You Already Have Some or Not)

This content is sponsored by MOAA Insurance Plans, administered by Association Member Benefits Advisors (AMBA).


September is Life Insurance Awareness Month. If you have loved ones who depend on you, now is the ideal time to consider purchasing life insurance (or if you already have some, now is a good time to evaluate if you need more of it). The following tips can help make the buying process easier and ensure you purchase the best coverage for your needs.


First step is to determine how much you need. Review your debt and living expenses your loved ones will have to cover until they reach retirement (spouse) or are out on their own (children). This may include considering the annual cost of living expenses and childcare as well as future expenses such as college tuition.


There are two basic types of life insurance: term and permanent “cash value.” Term provides coverage for a lump sum death benefit amount for a specified period of time (term). It’s usually simpler and less expensive. Permanent provides coverage over a lifetime and can be used as a savings or investment vehicle. Ask a trusted resource or financial advisor for help reviewing your needs and the types of plans you should consider. Once you decide which type is right for you, compare plans, benefits, rates and financial ratings of each company to find the best value for you.


Maintain a healthy lifestyle by getting in shape and maintaining a healthy weight. A healthy lifestyle can help you obtain coverage at an affordable or “preferred” rate. Generally, if you smoke, are overweight, have high blood pressure or cholesterol, you’ll be put in a higher risk class, pay higher premiums or be denied coverage altogether.


Take advantage of the 30-day FREE look. Insurance policies and certificates can include a lot of jargon and legal requirements. That’s why insurance companies give you 30 days to review the plan to make sure it’s what you thought it would be. Take advantage of this time-period to make sure you understand all the plan terms, benefits and other information.


Buying life insurance isn’t a one-time-only purchase. You should review your needs on an annual basis to make sure the amount you have keeps up with your lifestyle. Many lifestyle changes, including job promotions and changes, getting married/divorced, having children, buying a home and other events may mean you need to update your coverage.


The unexpected can happen at any time. Life insurance can provide your loved ones with an important financial safety net. However, without it or without enough, they could be forced to make lifestyle changes – such as moving and downsizing their home, foregoing college for your children, seeking another job or an additional job and more. Take the time now to review your life insurance needs.


MOAA members have access to a variety of life insurance solutions through MOAA Insurance Plans. For more information visit or call 1-800-247-2192 for details. 


Program Administered by Association Member Benefits Advisors (AMBA)
AR Insurance License #100102691 • CA Insurance License #0G39709
In CA d/b/a Association Member Benefits Advisors (AMBA).