Check them off your list before starting this app.
- There is no right or wrong age to purchase life insurance.
- Before you apply, determine your coverage needs, the type of policy you want, and if there are any steps you should take to improve your health.
Purchasing life insurance is a gesture that could protect your loved ones in the event of your death. Even if you’re not working, it could still pay off to set up coverage.
Suppose you are caring for an older member of your family or you are a stay-at-home parent whose children are too young to go to school. If successful, paid care might be needed, which also makes the case for a policy.
But if you’re going to apply for life insurance this year, there are a few steps worth taking first. Here are three to aim to tick off your list.
1. Decide what coverage you need
It’s easy to get sold life insurance. Before you apply, calculate a few numbers to determine how much death benefit you think you’ll need. There are different formulas you can use. One convention is to guarantee enough coverage to replace 10 times your income.
But you might want to take a different approach. If you have a working spouse, for example, you may decide that instead of replacing a specific multiple of your income, you want a benefit that could pay off your combined debts, like your mortgage and cars, and leave enough money behind. money is left over for your children’s education.
Ultimately, there’s no right or wrong answer when it comes to determining how much coverage to get. The key, however, is to avoid buying too large a policy, as this could drive up the cost of your premiums. If you earn $60,000 a year, for example, you probably don’t need a $2 million death benefit.
2. Determine if you want term insurance or whole life insurance
Term life insurance covers you for a predefined period of time. It can last 10, 20 or 30 years, for example. If you never have to use your term insurance policy, you don’t get any money back after it expires.
Whole life insuranceon the other hand, accumulates monetary value over time. It is money that you can choose to cash in or borrow. Plus, whole life insurance coverage never runs out. But it also costs a lot more than term life, so you’ll have to weigh the aspect of perpetual coverage and cash value against the higher premiums you’ll be forced to pay.
3. Do a health check
If you can’t remember the last time you saw a doctor for a medical exam, you can make an appointment before you buy life insurance. This way, you’ll get an idea of how healthy you are, and potentially get an idea of what aspects of your health you might want to improve.
The better your health, the more likely you are to spend less on life insurance premiums. If a doctor’s appointment reveals that you are slightly overweight, you may decide to try losing those extra 15 pounds and then apply for life insurance.
Setting up life insurance is one of the most important financial moves you can make. If you take these steps in advance, you could find yourself in an even better position to choose the right coverage and get an affordable rate on your premiums.
Life insurance protection for you and your family
While many varieties of insurance coverage are designed to help protect a person’s family and assets, life insurance is an essential type of protection. The right life insurance can help protect the people who depend on you most if you die. Choosing the right life insurance policy is essential to ensure the right protection for your loved ones. We’ve sorted through the different options to bring you our picks for the best life insurance policies available today.