There are a myriad of formulas that can help you determine how much life insurance you should carry. Some use a multiple of your annual income, others will consider your current debt and dependents. Is there a simpler way to determine how much life insurance a person should have?
It may be as simple as purchasing an amount that you can afford.
You see, if you secure more life insurance than you can afford or if you place a priority on other things in life, you may not be motivated to keep that life insurance in force. Of course, if the policy is not kept in force through timely payments, it fails to do its intended job. So while some large amount of life insurance may be warranted and beneficial, if it doesn’t fit in your budget, it does little good. This is particularly true with whole life insurance that can build value the longer it is kept in force.
What this means, of course, is that even if you don’t feel you can afford the amount of life insurance that may be appropriate for your situation, you should at least acquire something to get started. Perhaps you’ll start with enough to cover final expenses and debts like credit cards and student loans. This will at least provide some comfort and peace of mind for those left behind. As your financial situation improves, revisit your life insurance plan to see if you can adjusted upward. The point is to get started at some level now.
We can help. Our independent insurance agents can shop multiple companies to find the best coverage and price for you. They can explain your options when it comes to term or whole life insurance. They can help you get started while perhaps even setting a goal for future coverage.
The process is simple. Just answer a few basic questions and make your first premium payment to bind your coverage. If you are in reasonable health, there likely won’t even be a physical medical exam required. You’ll have at least some coverage and be started on your path to more financial security for your family.
Don’t wait. Remember, the younger you are when purchasing life insurance the less expensive it can be. Contact us today.