Representatives also get a lot of questions about the cost of life insurance, and the cost can be seen in two ways – the cost of getting it and the cost of not owning it.
Life insurance price – The life insurance price varies depending on factors such as the type of life insurance you buy, the amount of life insurance you want, your medical condition, health condition, and age. The smaller you are, the cheaper it is. Today will cost you less than tomorrow. But that doesn’t mean it will become prohibitively expensive over time, and most people think life insurance is more expensive than it actually is. When you meet with an agent to discuss your budget and goals, you can find the coverage that’s right for you.
The cost of being uninsured – Take a moment and think about what you’re saving your family now. Do you provide the necessary income for the mortgage and other expenses? Do you agree with future savings? Does she help with childcare? Getting ready for dinner? Is it purchases? Maintenance of living space? Now imagine you’re not there. How is your family’s life without you? How do you feel financially? What would the price be without life insurance? It has no cost. Although life insurance covers the same basic need (death benefit if something happens to you), different life insurance policies work differently and offer different benefits. Patrick Blevins, a State Farm® representative in Lexington, Va., likes to divide life insurance into two types: short-term and long-term.
Short-term protection – Blevins says that term life insurance “like renting an apartment” falls into this category. You buy insurance for a fixed period of time, usually 10, 20 or 30 years. If you die within this period, your survivor’s pension will be accrued. If you are still alive after this period, your policy will expire, or you can explore other life insurance options by consulting your agent. “The good thing is you can buy a lot of coverage for a small premium.”
Long-term protection – For this reason, Blevins often refers to permanent life insurance, which includes variants such as whole life insurance and universal life insurance. They say who owns the house. It also offers many housing advantages such as interest-guaranteed cash savings and tax advantages. Many Blevins customers consider the term value for money. “They want to know that they can access the money if they need help with tuition fees or additional income, even if the cash value of their plan increases.”
Some people think that one plan meets all their needs, while others choose a combination of different coverages.
Every situation is different and talking to a real estate agent can help you all. Your needs can also change over time, so it’s a good idea to review your plan regularly if you need to make changes as your life changes.
How much insurance do you need?
The amount of life insurance you need depends on your situation. Some people rely on group insurance as part of their job, but when they sit down and look at their family’s finances they realize that it’s not enough. If you change jobs or lose your job, your insurance group will not be with you.
When determining the life insurance you need, consider your family size, income, home value, and debts you have. And for that debt, make sure you pay all the expenses we have now and in the future – mortgage or rent, clothing, groceries, subsidies, car loans, and future education expenses – and leave nothing behind.
It depends on what you want for your family. What do you want when you’re not here? Do you want your family to stay with you? Do you want your husband to stay at home and take care of your family? These are the things you want them to do when they die.
When you start thinking about everything that affects how much life insurance you need in your life, it can be overwhelming.
Reasons to buy life insurance
Life insurance is often seen as a way to protect loved ones by covering final expenses and property taxes, but you can think about it further.
A boy paints with his father outside while his mother watches from the porch. Many people think about life insurance only after childbirth. But far too many people, with or without children, are postponing the purchase altogether. Many consumers overestimate the cost of owning and paying for life insurance.
Why do I need life insurance?
Life events and milestones sometimes influence life insurance decisions. It is recommended that warranties be continually reviewed as they arise. This ensures that the fields are up-to-date and that you can check or update payees. People often make life insurance decisions and make changes after life events such as marriage, childbirth, adoption, divorce, remarriage, or death. Some other times are described below.
Your children are in elementary school. A good time to consider life insurance is when the kids join the family. Another good time to start thinking about term life insurance is the start of elementary school. College expenses and other milestones must also be taken into account.
They are married and have joint debts. Many people use marriage as an excuse to buy life insurance. And they often benefit from lower youth premiums. However, depending on how much joint debt you have, including mortgages and credit cards, adding or increasing your life insurance can make all the difference. According to Experian, the average U.S. mortgage balance in 2021 was $220,380. This is certainly a big responsibility for a recently widowed spouse, so life insurance helps a lot.
Someone is signing a loan for you, or you are signing a loan for someone else. If your death has financial consequences for others, you should consider insurance. For example, if your parents signed a car loan with you and you die without life insurance, they may be responsible for paying off your debt. If you have signed a loan for someone else and are helping them pay it off, they may not have enough funds to cover the payment.
You are changing jobs. Some people think they don’t need life insurance because their employer is already paying for it. According to Investopedia, typical amounts are as low as 20,000, 50,000, or 1 or 2 times an employee’s annual salary. The warranty usually ends when the organization terminates group life insurance or when someone decides to change jobs.
However, it is recommended that the policy be protected by a separate individual policy to ensure adequate, stable and consistent protection. Some people seek life insurance that is 10 times their annual income. Others list all of their financial obligations (including mortgage payments and college tuition) from now until their children reach adulthood and strive to cover the full amount. If your current policies do not cover these amounts, it is better to add or increase coverage.
You are writing a real estate plan. Many adults with older children consider dropping life insurance because they no longer need to cover their daily income. When used correctly, life insurance can be a great way to leave an inheritance to your beneficiaries while avoiding a will and protecting privacy.
You are in the process of a divorce. If you are going through a divorce, it is worth considering insurance, especially if you have children. Divorce life insurance is often overlooked when a marriage fails.
