How to Choose the Right Life Insurance for You

Life insurance is a way to ensure your loved ones are financially protected if you pass away. Insurance itself is often difficult to understand, but life insurance can be particularly hard to navigate. Our tips will help you choose the right life insurance for your needs.

What kind of policy?

Permanent life insurance is the most expensive kind of life insurance policy because it provides a death benefit and a cash value to your dependent. In most whole life policies, you have a set payment until your policy is paid off. The policy doesn’t expire, so you are covered through your entire lifetime. Some types of policies allow you to build up a cash amount through investing and have more flexible premiums.

Term life insurance is less expensive and offers only a death benefit with no cash reserve. Term life policies, as the name suggests, only last as long as the policy specifies. The death benefits can either stay the same throughout the policy or steadily decrease depending on which you choose.

How much coverage?

The amount of coverage you need on your life insurance policy depends on how many dependents you have, your income, and any debts you currently have. Generally, you can take your salary and multiply it by between 5 to 10 to approximate how much coverage you will need. Depending on the complexity of your finances, it may be best to consult a professional.

How long should your coverage last?

The length of your coverage depends on how long your dependents will need your financial protection. If you’re insuring your children, consider that they will eventually be financially stable on their own. If you’re insuring your spouse and they are dependent on your income, a whole life insurance policy may be more practical.

When should you buy it?

Life insurance tends to be cheaper when you are healthy and younger. However, until you have someone else relying on your finances, you shouldn’t purchase a policy.

This is a guest post contributed to by InPro Insurance Group, a full-service independent agency serving the Troy, Michigan area.

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