The critical questions are, “How much life insurance do I require?” and “What is the best type of policy for me?” Finally, and perhaps most importantly, “From which company should I purchase my policy?” Here are our top life insurance purchasing recommendations for 2017.
Buying life insurance for the first time can be difficult, so we’ve put together a list of key tips to help you get started.
As much as we would like to believe otherwise, human life is finite. Most people will require life insurance at some point in their lives, but buying a policy because a friend recommended it is not a good idea. Life insurance provides financial security to families in the event that a spouse or parent dies, and insurance coverage can help pay off debts such as education loans and mortgage payments. The proceeds of a policy can be used to fund a comfortable retirement, support charitable giving, and serve as the foundation of a solid estate planning strategy.
Your favorite and most beloved people may be dependent on your earnings. If they do, it’s a good idea to look into life insurance.
If you’re still young, getting a “starter” policy makes the most sense because the younger you are, the less money you’ll have to pay for life insurance.
Consider how much money your heirs or family members will receive in the event of your death to determine the amount of coverage you require. These funds are known as a death benefit, and you can figure out how much life insurance you’ll need to provide for them by using an online life insurance calculator like this one from Life Happens.
It is also possible to arrive at a number that meets your requirements by simply multiplying your annual salary by ‘8’, which will provide you with a ballpark figure to begin your calculations.
You should also include a list of monthly expenses that your family will have to bear after your death, such as a mortgage, one-time charges, or school costs. You can then take the total of those expenses and divide it by.07 to get a sum of money that would earn roughly 7% per year to cover those ongoing expenses.
While a calculator is a useful tool, it will not provide the in-depth answers you require. Calculators can only perform hypothetical calculations based on your rough assumptions. When you discuss your needs with a life insurance professional, the real deal begins.
There are some fantastic tools available to help you choose between your main life insurance coverage options. You can choose between term life policies with low premiums and permanent life policies with comprehensive coverage that can include cash value as part of the return.
What’s the bottom line? The trustworthiness of the companies that back insurance policies determines the core value of the policies, so choose your insurance provider wisely. To accomplish this, use this excellent life insurance quoting tool to obtain instant, anonymous quotes from 50 different companies.
If you prefer a more traditional approach, you can always consult with a financial services professional who can assist you in analyzing all of the factors and financial considerations to meet your family’s needs.
Understanding the terms used in the trade, from ‘premium’ to ‘dividend’ to ‘beneficiary,’ is another essential tool for navigating the intricacies of buying life insurance.
We’re back to assist you with this comprehensive list of frequently asked questions about life insurance…