10 Tips To Help You With Life Insurance
Life Insurance is Not as Expensive
A healthy 35-year old could get coverage worth $500,000 from a reputable company for even $30 per month, which is not very expensive. Life insurance costs more as you get older, so buy it when you’re young.
Get Life Insurance if You Have Dependents
Life insurance protects your income—your dependents can have some financial stability after your demise.
Review Your Life Insurance Regularly
A new job, moving to a new house, new additions to the family, or a raise at work can change a lot. Review your coverage every year when you receive your Social Security statement or during your benefits enrollment period at work.
Your Insurance Provider’s Financial Standing is Important
Before finalizing your insurance company, do some research or ask around about its financial strength and reputation. These factors are important in ensuring the company can keep up its guarantee of offering you protection.
If You’re Not There to Earn Your Paycheck, Life Insurance Can Replace It
To get an estimate of the amount of life insurance you should buy, multiply 60% of your annual income times the number of years until retirement (assuming that you get normal raises over time, and include employee benefits, such as healthcare). Next, deduct what it costs your family to have you around, and the effect of taxes.
Life Insurance is a Smart Financial Move
Spending 1% of your annual salary on your life insurance’s annual cost is the recommended coverage amount.
Even Some Life Insurance is Good
If you’re currently between jobs or a stay-at-home parent, represent your income with the average American salary—$40,000. Get coverage amounting to 5 years of your annual salary + any outstanding debt, including car payments, student loans, and mortgage.
Know How Much Life Insurance Your Employer Provides You
Find out how much life insurance you have at work, and get more on your own or through benefits at work based on your requirements.
Term Insurance is a Cost-effective Option to Get Started
Term insurance comes with an expiry date but offers more coverage for less money. Use it for anticipated expenses like clearing a mortgage. Permanent life insurance offers more flexibility and benefits.
Good Advice is the Best
The more you research about life insurance, the easier it is to decide what works for you. Do your research or talk to trained financial professionals to get the right information.
