Maybe you've decided it's time to start considering life insurance to protect your family or loved ones if something happens to you.
That's great, but what now?
If you are like almost all consumers who have reached this question, you are probably asking yourself one of two questions:
- How much coverage do I need?
- What type of life insurance should I buy?
Guess what? It depends on. But keep this very important principle in mind:
Tips . No matter what type of insurance you buy, you should make sure that it provides enough of a death benefit to meet your family's needs if you are not here. your family must have in the form of a death benefit. Do not lose sight of this number.
How do you decide what this number should be?
Here is a general guideline:
- How much do you need to pay off your mortgage?
- What amount is needed to meet short-term debt (credit
- How much is needed for funeral expenses?
- How much of your income would need to be reimbursed in the future (think of your annual income multiplied by the number of years your family would need this income)
- Do you want to pay for your children's education? If so, how much will it cost?
- Are there any one-time costs you want to cover for your children (wedding, first car, down payment on a home)? your family needs to give a grieving spouse or family time before returning to work and / or everyday life
If you would like a more in-depth analysis, contact one of our Licensed Advisors and we will be happy to send you our life insurance calculator to help
What types of life insurance are there?
There are several, but remember that the terms and costs of the insurance vary greatly between the insurances. gsgivarna.  There are two basic types:
- Term Life which is good only for a certain period of time, and,
- Cash-Value which is a "permanent" insurance which also includes a building value in cash in addition to your death benefit. You can borrow against your cash value. You can even withdraw part of the cash value, but your death benefit will be reduced. It is the part of a permanent life insurance that is not needed for so-called death costs. The greater your risk of dying, for whatever reason, in the short term, the greater your death cost for your insurance company – the greater your insurance premium.
When young, healthy people buy life insurance, they have a very low mortality cost for their insurers (that is why life insurers are so willing to provide the young and healthy coverage). Some people may not even get coverage, regardless of age, if they have certain types of health conditions.
With all the factors to consider when choosing the type of policy you need, the amount of coverage to protect your loved ones. , and which insurance company is strong and stable enough to remain for the next 30 or 50 years, it can be very helpful to seek advice from a licensed insurance adviser.
You should never expect to do this on your own. If this is your preference, you can certainly get coverage on your own. Given the complexity of the life insurance market and the importance of choosing an insurance policy with the appropriate terms so that it responds when needed, you may want to consider the help of a licensed adviser.
If you would like to contact one of our licensed advisors for more information. We are here to help.