Most people think about getting life insurance, but don’t know how much and the type of insurance they need; or they tend to avoid the subject all together as it’s not a comfortable subject to discuss. But the reality is, having a life insurance policy in place may give you comfort knowing that your loved ones are taken care of, if you are no long here. Here’s what you should know.
If you have dependents – you need insurance!
Life insurance helps your dependents keep living as if you were still here earning a paycheck. If you have children or other loved ones that depend on you, you need life insurance.
Life insurance is less expensive than you think
Many people think that the cost of life insurance Is too expensive. Term policies lock in a specific rate for the length of the policy. For example, a healthy 30-year-old man can get a $500k 20-year term policy for as little as $310 a year. Keep in mind, the longer you wait and the older you get, the premiums increase.
Your life insurance needs change over time
Change – such as a birth, divorce, remarriage or even a new job – are indicators that you might need to make changes to your policy. It’s also important to review your beneficiary to confirm that your death benefit will be able to help protect your loved ones in the way you intend.
Find out what your employer offers
While most employers offer a policy, it’s usually not enough to cover your needs. You can have multiple policies, so an additional policy may be what you need to ensure your loved ones are taken care of.
Don’t cancel an existing policy, without having a new one in place
If you are considering replacing an existing policy, make sure that the new one is paid and in force to ensure there is no lapse in coverage.
The financial strength of the company is important
There are several insurance rating agencies (A.M. Best, Moody’s, Standard & Poor’s) that provide insight on the financial stability and reliability of a company. Review these ratings to ensure that you are with a strong company that you can depend on when you most need it.
Consult a financial professional
Ensuring that your loved ones are protected should be part of your overall financial plan. Consult an advisor that will review any policies you may have, or help recommend the type and amount of coverage you should have in place.
If you have any questions about the types of life insurance, the amount of coverage you need, or simply want to review a policy you have, please contact me at [email protected]
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