Life insurance can be a confusing proposition for many consumers.
One expert told financial website Bankrate that there are no easy answers because every individual has different needs. Much of the decision has to be based upon everything from the consumer’s financial commitments and what they can afford to whether they need life insurance at all.
Between a mortgage and student loan payments, most consumers have a number of financial commitments that tie up part of their monthly income. When those commitments will be paid off should dictate when to get life insurance, the site said. Those commitments also play a role in determining how much insurance to get. Consumers should get a policy that will cover those expenses in the event of their death but won’t cost more per month than they can afford.
Some people may not even need life insurance, the site said. If their home is paid off, their children are grown and they have substantial savings, then life insurance may be an unnecessary expenditure.
A separate Bankrate article says to consider whether the consumer may at some point require long-term care, which can affect the previous factors considerably.