Consider your current financial position and your plans to sustain yourself and your dependents. Including your emergency savings, retirement savings, and any additional health and life insurance you might receive from your job.
By clearly understanding your financial circumstances, you can easily decide what kind and how much life insurance you need.
How Much Coverage Do You Need?
Consider how much coverage you will need after knowing your current financial status. You can use the “rule of thumb” to calculate your required life insurance, where you must purchase an insurance policy with a death benefit 10 times your annual salary.
What to Look For in a Policy
There are several considerations to bear in mind when choosing a life insurance policy:
– Premiums
– Cash value
– Riders
– Exclusions
Choose a Life Insurance Policy
Term life insurance and whole life insurance are two different life insurance policies. Term life insurance offers a reasonable price for a set period. On the other hand, whole life insurance offers permanent protection. This policy is more expensive than term life insurance since it guarantees that the insured’s chosen family members or other beneficiaries will receive payouts in the insured’s death.
Know What Affects Your Life Insurance Rate
Health and age are the 2 major factors life insurance companies consider when calculating the cost of your coverage. The rate you pay also influences the type of insurance you choose and the value of the death benefit you’ll receive.
Notes Check
These are only a few bits of advice on what could be useful when you get your first life insurance policy. Like any other new experience, purchasing life insurance for the first time might be overwhelming. However, considering its benefits, it ensures that insurance is worthwhile for your time and money.
At Lapeira & Associates LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (855) 963-6900. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!
