We all know that life insurance is one of the best investments that you could ever make for your family. Aside from having life insurance, the next most important decision that you can make is determining how much coverage that you need to buy. Not having enough life insurance coverage is one of the worst mistakes that you could ever make.
Millions of Americans currently hold a life insurance plan, but a vast majority of policyholders are underinsured. There are several reasons that people don’t have enough life insurance, the main reason is that they didn’t do any calculations before they purchased coverage. The other reason is that they’ve had the same sized life insurance plan for several years and their family has changed. As your life changes, your life insurance needs are going to change as well.
Before you buy life insurance, or you’ve had the same plan for a decade, it’s important that you calculate or recalculate how much life insurance protection that your family will need if something tragic were to happen to you. There are several key components that you will need to add up to determine the amount of life insurance that you should have.
At LifeInsuranceForAccountants.com, it’s our mission to ensure that you’re getting the best rates possible. We know that shopping for life insurance isn’t a fun idea. Nobody wants to think his or her death, but not planning for the inevitable is the worst mistake that you could make.
The first number that you should look at is your major debts and other expenses. The primary goal of your life insurance is to give your loved ones the money that they need if you were to pass away and they would be left with a massive amount of debts.
Some of the debts that you should add up are your mortgage, student loans, car payments, business loans, and much more. Many applicants are surprised to see that they have hundreds of thousands of dollars of loans. If something tragic were to happen, your family would struggle because of the mountain of debt that they would be left with, but that’s where your life insurance comes in. Make sure that your plan is large enough to pay off all of those bills.
The next number that you should look at is your annual income. If you’re one of the main income earners in your home, then your family would struggle without that source of money. That’s where your life insurance plan comes in. Your life insurance coverage can give your family members the money that they need to pay for any basic expenses without having to sacrifice their standard of living or drain their savings accounts. There is no magic number, but most life insurance professionals suggest getting around ten times your annual income.
If you’ve had any children since you’ve bought your life insurance plan, then you probably don’t have enough life insurance protection. The more children that you have, the more income replacement that your family will need. Not only will they need to replace your income, but they are also going to have future expenses like college tuition. College can be expensive, but your life insurance coverage can ensure that your kids have the money that they need to further their education.
Getting Affordable Life Insurance
After you’ve calculated your life insurance needs, you might be surprised at how much coverage that you’ll need to buy. You might be worried about how much that life insurance plan is going to cost you. Don’t worry, regardless of how much you need, it’s possible to get an affordable plan that will fit your budget.
There are several ways that you can secure better rates for your insurance plan. The first thing that you should do is cut out any cigarettes or chewing tobacco. Regardless of how much you’re going to buy or the type of plan, if you smoke, you’re going to pay a lot more for your insurance. In fact, tobacco users are going to pay at least twice as much for their insurance coverage.
Another way to ensure that you’re getting the lowest insurance premiums is to compare dozens of plans before you decide which one is going to give you the best coverage. Every company is different, and all of them are going to offer you different premiums based on their medical underwriting. Your rates are going to vary wildly depending on the company that you choose.
There are hundreds of companies on the market, all of them have different medical underwriting and rating systems. Instead of wasting your valuable time, let us do the shopping for you. We are a group of independent brokers, which means that we work with dozens of highly rated companies across the nation. Fill out the quote form on the side, and a personalized set of quotes will be sent directly to you. Working with our independent insurance will save you both time and money on your life insurance search.
If you have any questions about life insurance or how much coverage that you need, please contact one of our agents today. We would love to answer those questions and ensure that you’re getting the best plan possible. You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the life insurance coverage that your loved ones deserve.