Do You Have the Right Life Insurance Coverage?
We understand that life insurance can be a bit tricky when it comes to figuring out how much coverage you need. You don't want to be over-insured, but you're also afraid of not buying enough life insurance to take care of your family in the event of your death. We want you to be secure in the knowledge that you've purchased exactly the right life insurance coverage. If you want to speak directly with an experienced life insurance representative, then you may request a quote.
How much life insurance do you need?
There is very rarely a question about whether you need life insurance; the question is how much do you need to protect your family? There are two ways to estimate how much life insurance you may need.
- You can take your yearly salary and multiply it by ten. While not exactly a scientific method, it's a good way to estimate how much life insurance you may want to purchase.
- Another way is to calculate your debt including your mortgage, credit cards, and other expenses. Then add in the cost of funeral expenses, medical bills, and possible estate taxes. Take into account monthly bills and college and retirement expenses.
In addition to these calculations, you may also want to include enough money for your spouse to live on while they are adjusting to life without you. These expenses could include moving, finding employment, and more.
What kind of life insurance do you need?
There are two basic forms of life insurance; term and permanent.
- Term life insurance is in effect for a specific period of time, and is relatively inexpensive to purchase. While, this type of life insurance does not have a cash value account, it is a good type of life insurance and can provide protection that is comparable to other types of life insurance.
- Permanent life insurance is more expensive but is in effect for your whole life as long as you make your premium payments. This type of insurance also has a cash value account that increases in value over the term of the policy. The money in this cash value account is tax-deferred and can be used for retirement, college tuition, or other expenses. You can also borrow money for your personal use from a cash value account.
Which type of life insurance coverage is right for you?
There are many factors that determine what type of life insurance coverage is right for you and your family. It depends on your goals, current needs, and other financial and personal matters.
We can help you make a determination as to what type of life insurance is right for your situation. Start today by submitting your request.