Think you don’t need life insurance?
Think again. Even individuals that believe they don’t need life insurance are swiftly proven wrong given the time to present evidence.
In fact, you’re better off buying life insurance before needing it—even in your healthy and capable 20s. If you happen to support someone, such as an aging parent or your child, you’re even more of a candidate. And of course, if you regularly engage in high-risk hobbies (here’s looking at you, shark divers), you needed life insurance, like, yesterday.
Why might you consider such a policy? For several reasons—a baby or marriage on the way; a piling-up debt; a high-risk job. Even those lucky self-employed readers should consider a plan, simply because it ensures your employees will still get paid even under the direst of circumstances.
It’s still in your hands to choose the best plan for you. Our guide offers three of the most helpful tips.
1. Consider the Difference Between Term vs. Permanent or Whole Life Insurance
You want to find more info here, and that’s understandable. After all, buying insurance can feel like a confusing or overwhelming process. Luckily, life insurance is split into two categories, making it easy to manage and understand.
Those two categories are term life insurance and permanent/whole life insurance. As you learn more about each, it’ll become quite clear the best option for you and your family.
Term life insurance is a better option for those with a small budget, as it tends to be more affordable. With this smaller price tag comes fewer benefits and a smaller timeline but can still be a viable option for some. Whole life insurance is more expensive up-front, but you’re guaranteed a specific rate, plus coverage for your entire life.
Both options allow your family members to be covered in the event of your passing.
2. Know What Coverage You Need
This number varies, depending on your situation. There are several questions you can ask yourself, such as
- How much do you want or need to leave behind?
- Are there other family members that need insuring with you?
- Do you have any outstanding debts, such as student loans, you need to pay off?
If you’re the sole provider for your family, you’ll need to consider income replacement, too.
Consider your financial situation now when planning for the future.
3. Analyze Your Budget
Think about your annual salary—now multiple by anywhere for 6 to ten. That’s how much insurance companies typically recommend for life insurance.
Choosing a Life Insurance Plan Doesn’t Need to Be Difficult . . .
It just requires diligence, and understandably so!
Certain things don’t require as much dedication and research—think, where you go grocery shopping or the place you stop to fill your gas tank—but when it comes to acquiring life insurance, why wouldn’t you go the extra mile? Put your life’s work in good hands by using the above steps to find the best plan for you.
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