When it comes to selecting the proper life insurance plan to fit your needs and the needs of your family, the options and various plan features may seem a bit overwhelming. Though it might all be confusing at first glance, some research and the helpful expertise of an insurance agent can help you determine which life insurance policy will suit you best.
1. How much coverage do I need?
When considering how much coverage you would need from a life insurance policy similar to what you could discover at PolicyMe, think through your personal situation inregards to how many people rely on you and the income you generate. How many dependents do you have? What percentage of your family’s income is brought in by your work? In the event of your death, would your family be able to continue paying its mortgage and other bills, and to send your kids away to college? Consider your role in financially supporting your loved ones.
You also must consider any debts you may have and the lifestyle your family possesses. You want to ensure that if you were to be gone, they would be able to pay off any remaining debts and maintain the lifestyle that they are accustomed to if possible.
2. What type of plan should I get?
The three main types of life insurance offered are explained in more detail here, but be assured that with them you are presented with the options you need.
- Term insurance (after having bought life insurance for a particular term) will simply grant your beneficiary the sum of your policy in the event of your death.
- Whole life insurance is purchased to cover (you guessed it) your whole life rather than just a specific period of time.
- Universal life insurance allows you to choose how much you would like to contribute to your policy in addition to its minimum premium. Then, in the event of the policyholder’s death, this extra cash will either be added to the value of the policy or have the beneficiary receive most or all of it along with the value of the policy.
3. How much can I pay in life insurance costs?
Let your goal in choosing a life insurance policy be to hit the sweet spot of balancing what you are able to afford with what would maximize the policy’s return. Purchasing life insurance on a term basis will be the least expensive and can serve its purpose in greatly benefiting your family if something were to happen to you. A universal life insurance plan on the other hand will end up costing you more, but would also pay more if it were to be used by your family in the case of your death.
With the way life insurance plans are set up, it is likely that should you pay what you can afford for your plan’s premium, your family will be appropriately covered if the need were to arise.
Talk with an expert, think through your family’s lifestyle and needs, and consider all your options when making life insurance decisions. Doing so will help you to pick the plan that will be best for you and those depending on you. We have offices in Harrisburg, Marion, and Eldorado for your convenience.