Everyone needs life insurance. It doesn’t matter if you are married or single, parent or childless, young or old. If someone depends on you and what you provide, then they need to be provided for in the event of your death. Knowing your needs can help you get the life insurance you want for the best price.
Determine the amount of coverage you need. Use the internet to perform a search for a life insurance worksheet. Fill out the worksheet twice-each time subtracting the other spouse’s life earnings, and assets from what you would need to keep living at your current level if a spouse dies. Include funeral arrangements in with the future living expenses.
Life insurance comes in two main categories: term and permanent. Term life insurance offers lower premiums to the consumer. This is because the policy is for a specified number of years only. Term life policy holders use this type of insurance for short term circumstances, such as: children in college with no income, or just starting out and you are on a budget. Make sure that you understand what “term” means when considering these policies.
Permanent life insurance is more expensive. Once you purchase it, the policy is good for life. The benefits of these policies are forever. There is no specific period of time in which benefits need to be claimed. If you are planning for your children’s future, your funeral, and/or retirement, permanent life insurance is a must.
Life insurance can be purchased from your job, through the mail or internet, or from an insurance agent. Most employers offer life insurance that is equal to your yearly salary. If you plan on keeping this job long term, adding additional coverage for yourself and your family is a wise and inexpensive choice. If, however, you don’t plan on making this job your last career stop, take the free coverage and seek additional life insurance from another source.
I receive mailings all the time from companies offering life insurance. Call and ask to speak with a licensed agent who can answer the questions you have about the coverage they offer. Some of these mailings offer insurance policies at a good price.
Consult a reputable insurance agent. If the agent has also supplied your homeowner’s and car insurance policies, they could work a deal for you that would offer you independent life insurance policies at a lower cost. Since jobs are subject to change, I recommend holding independent policies from an insurance agent.
Examine all of your options. Don’t be caught without enough life insurance coverage for your family in the event that something happens to you. The only way to save money now and later is to shop around.
To learn more, check out the Mom’s Talk eBook’s Guide to Family Budgeting – Step-by-step guide to help you establish a workable budget.
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