There are many factors to consider when shopping for life insurance, including how much coverage you need and what you’ve budgeted for. Here are the top questions to consider when buying life insurance.
Do I need a life insurance policy?
If you’re wondering, is life insurance worth it? Then look no further. Almost everyone can benefit from having a life insurance policy, as it can be a strong financial cushion for your loved ones if something were to happen to you. A life insurance policy can help cover the cost of a mortgage payment, utilities, outstanding debt, burial expenses and more. It is a great way to ensure your family doesn’t have to worry about money during such a trying time.
Are the life insurance benefits I receive from my employer enough?
Life insurance coverage through your employer can be a cost-effective way to supplement your needs, but it might not always be enough. If you are married, have kids or have anyone else relying on your income, a traditional life insurance policy with a higher coverage amount will likely suit your needs better.
Who would rely on the benefits of life insurance?
If you have dependents, children or any other loved ones that rely on your income, they would benefit directly from you having a life insurance policy in place. The passing of a loved one can be overwhelming, so ensuring finances are something they don’t have to worry about can give you all peace of mind.
Who should be my life insurance beneficiary?
Choosing your life insurance beneficiary is an important step in securing your life insurance policy and is likely one of the main reasons you bought your life insurance policy in the first place. Almost anyone can be a beneficiary—people, organizations, trusts—so you’ll want to make a list of all potential beneficiaries when making this decision. You’ll also want to consider a contingent beneficiary in the case your primary beneficiary is unable to be the recipient.
What type of life insurance is best for me?
The right type of life insurance looks different from person-to-person, so it might take some research and exploration to understand which is right for you.
Term life insurance is one of the most common types of insurance, as it tends to be the most flexible and most affordable option. With term life insurance, you get to choose the “term” or length of your policy, which means you only buy it for as long as you need. The most typical term lengths are 10-year, 15-year, 20-year, 25-year and 30-year policies. Since term life insurance is more affordable and you can choose what term length works for you, term life insurance is often the best choice for most families.
Some people, however, find that permanent life insurance is a better fit.
How much life insurance coverage do I need?
Much like the type of life insurance, how much coverage you need will depend on a number of factors. Your life insurance policy should be enough to cover immediate expenses as well as provide continuous income for your beneficiaries, and most financial planners recommend coverage that’s 5-10 times your annual income.
Can I save money on life insurance through discounts?
While some carriers might offer discounts, it isn’t extremely common. One of the easiest ways to find the most affordable life insurance is to shop around and compare coverage and rates. At SelectQuote, we can do it for you in just minutes.
Have other questions about life insurance? Let SelectQuote help.
Whether you’re trying to decide what type of life insurance is right for you or are wondering how to find the most affordable coverage, SelectQuote can help. In just minutes, we can compare coverage and rates from some of the most trusted insurance companies in the nation to find the right coverage with the right carrier at the right price for you.