The statistics regarding life insurance can be shocking. The Insurance Information Institute reports that only four in 10 Americans has life insurance.
However, 34 percent of Americans believe they will purchase a policy in the coming year. With that in mind, you may be wondering how to choose the right policy for your needs.
How Much Is Enough?
It is not usually difficult to buy life insurance policies today. Multiple options exist with a wide range of products to meet the needs of most families.
However, choosing a policy is more than just picking one that is inexpensive or a basic plan. You need to consider what your family would need financially if you were not able to provide for those needs. There are several things to consider.
Are you a wage earner in your family? If other people depend on your income, it is important to consider the value of life insurance. Take these factors into account when choosing coverage:
- How much do you earn per year and per month?
- How much of your income goes to meet the needs of your family?
- How long would it take your family to recoup the losses and be able to pay for their needs ongoing?
What financial tools does your family have in place for these types of needs? If your family doesn’t have savings or funds for immediate needs you may consider a higher policy. Yous should also consider whether you have other types expense coverage like funeral coverage. This can change how much money your family needs to have on hand to cover costs.
It is also important to consider your needs in terms of expenses. Life insurance can provide financial protection for your family to cover many expenses. This may include your mortgage, medical costs, credit card debt and much more. Also, you can use plans to cover a child’s college education should you die before they graduate.
With so many options to consider, it is important for individuals to work with a skilled agent. The right agency can help you determine the best type and amount of life insurance for your family. The good news is that most policies offer protection and provide for most needs without very high costs.
Millers Insurance Agency can help you decide on appropriate life insurance coverage. Through our website, you can get more information or a fast quote. Give us a call today at (610) 269-4500.