How Much Life Insurance Do You Need?

How Much Life Insurance?

A question many of our clients asks is how much life insurance do they need?

This depends on what the policy is going to be used for. Do they need a final expense policy or a whole life policy, term life insurance, accidental death or burial insurance? One can even buy a policy that can cover miscellaneous, credit card debts and things like that. It depends on the scenario and what you wish covered.

The blanket rule is if you’re looking for a larger policy and your health is excellent and you are taking little to no prescription medicines, meaning three or less and no major prescription medicines like Gabapentin or Lyrica, you could be looking at a term policy that gives you more coverage, this being the most economical way to get a larger policy.

The downside of term policies is that they do expire when you get to the end of the term.  They don’t make a great end of life policy. But if you’re looking for larger coverage for just a period of time, that’s a great fit you and your family. It’s not going to be for everybody. It depends on your scenario.

If you have your heart set on term, really think about it. If it’s either too expensive or if you don’t qualify for health reasons, you could consider a whole life policy from $10,000 to $40,000. The younger you are the better. Now is the time to get life insurance.

As you get older and you’re getting into your seventies or into your eighties,  remember that for most of these insurance companies, 85-years-old is your last year where you can’t get insured. If you’re getting a term, just make sure it expires before that time.

Consider that every year that you wait to get life insurance coverage, mortgage protection, insurance, final expense, other term coverage, anything like that, the longer you wait, the more expensive it’s going to get.

Once you get your policy, as long as it’s a level term or it’s a whole life insurance policy, then your rates are going to be locked in. Your price will not go up for the term. And if it’s whole life, your price will never go up, ever. It goes until you go as well. It’s a great policy.

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