How to get started on buying life insurance.
You have big plans in life. You want to have a family, own a home, and retire while you’re still young enough to enjoy it. You may already be doing these things, but these plans don’t mean much without life insurance. If you were to suddenly pass on, would your significant other be able to afford to raise your family, send your children off to college, and retire on time as planned? It can be scary to think about, but it doesn’t have to be. If you’re in the market for life insurance, here’s what you need to know.
Find out if you need it.
Are you young and healthy? Are you debt-free? Are you free of any dependents who rely on your income? If the answer to all three is ‘yes,’ then you may not need life insurance. Life insurance acts to protect your dependents in the event that the worst happens. When you pass, you’ll leave your family with the day-to-day expenses, paying off debts, and with the necessity to save for the future. Life insurance helps your family to do this.
Determine what type you need.
Like every insurance policy, there is no ‘one size fits all.’ Generally, there are two types to choose from. Term insurance protects you for a certain period of time, such as 5, 10, or 30 years. Whole or permanent life insurance protects you throughout your entire life. First-time life insurance shoppers should determine how long they’ll need protection with the policy.
Calculate your finances.
An important part of the policy is how much coverage you have. To determine this, you’ll need to calculate the following:
- Your debt
- How much you’ll pay for college for your kids
- How much your dependents need for day-to-day living
- Your total savings amount
Once you know what your family needs to survive, you’re in a better position to purchase the right amount of coverage.
For the help that you need in choosing a policy that meets your needs and budget, let the professionals at Tompkins Insurance Agencies help. Visit us today to get started.