Shopping for life insurance is a personal experience, and it can sometimes be an emotional one as well. To make it easier, here are some things you should know before calling your insurance agent for a life insurance quote.
How Much Coverage Do I Need?
Having enough coverage is a crucial question to answer. Usually, it is recommended to estimate 10 times your annual income. However, that number can vary depending on your circumstances and what large outstanding debts you may have. Income replacement is one of the top reasons why people buy life insurance because financial security prevents your loved ones from having to worry.
So the best way to answer the question, "how much life insurance do I need" is to answer how much money your family and dependents need to replace your income every year for the next 20 to 30 years and cover any large outstanding debts.
Have Your Medical History Handy
When purchasing life insurance, your health records are required for the initial assessment. But don’t worry, a standard term life insurance policy will typically cover death by any cause at any time, except for death by suicide within the first one to two policy years, depending on the state you’re in. Regardless, have your records handy, because there will be health-related questions that you will need to answer.
What Term Should I Get?
Term life insurance can be less intimidating because of how flexible (and affordable) it is. It provides straightforward death benefit protection. So when deciding on what term life insurance to purchase, discuss your general income needs with one of our agents. They will help calculate the best policy terms and limits for your specific circumstances.
Life insurance policy prices can vary, so call one of our agents today to go over all your options and get a comprehensive quote.