Life insurance can make the difference between a family that can move on financially after a sudden death and one that lives with the challenges associated with losing a breadwinner forever. Fortunately, by carefully planning for your future, you can protect your family’s lifestyle and sleep a little easier at night. This guide lists three things you should consider before buying a life insurance policy.
1. Your Family Situation
Every family is a little different, which is why the life insurance policy that works well for a friend or neighbor may not be right for you. Family size, marital status, and even family members’ medical conditions can help determine how much insurance you need, so carefully consider your family situation before you start shopping for policies.
Think about how much money you make as opposed to your spouse, and whether or not your dependents are likely to move out in the future. If you have disabled children or children who don’t feel comfortable moving out quite yet, then you may need more coverage than someone who doesn’t have children.
Also, carefully consider your spouse’s level of employment, and whether or not they count on you for income. As a general rule of thumb, plan on purchasing a policy large enough to cover the gap in your missing income until your spouse reaches retirement age.
2. Your Personal Health
How healthy are you right now? If you are struggling with ongoing health problems or are grossly overweight, then your life insurance premiums might be higher. Since your personal health directly corresponds with your lifespan, insurance companies tend to charge higher premiums for life insurance, especially if you have high-risk conditions like diabetes or cancer.
Your personal health also comes into play when purchasing life insurance, because you may not need as long of a term if you are older or in poor health. Talk with your medical providers about your estimated lifespan, and think carefully about how long you need coverage. Be open and honest with life insurance providers about your current health, since failure to disclose conditions could lead to a cancellation of your policy.
3. Your Other Investments
Another important thing to consider before selecting a life insurance policy is your entire financial portfolio, since income properties, retirement plans, and inheritances can change the amount of money you need when it comes to life insurance.
Before you start the search for a life insurance policy, take the time to evaluate your retirement accounts, talk with mortgage brokers about the worth of your real estate properties, and think about your potential for large inheritances. Also, remember that certain benefits, like social security, may only offer a small percentage of your original income if you pass away, so try not to overestimate future earnings.
To make choosing life insurance a lot easier, meet with an insurance broker. In addition to carefully evaluating your current and future needs, insurance brokers can also talk with you about all of the different types of insurance options available so that you can choose the plan that works best for your family. Life insurance policies are always important to have, and a professional can help you decide on the right policy.
If you need a life insurance policy, then don’t hesitate to reach out to us here at Family Insurance Centers. With more than 30 years of experience and a commitment to our customers, we can help to take the stress out of your search for life insurance. To learn more about our team or to explore our products, visit us online or give us a call today to get started. We look forward to working with you.