Life insurance is the most important investments that you’ll make for the future of your family. It’s the only way that you’ll ensure that your family will have the resources they need if you were to pass away. Aside from having life insurance, it’s vital that you also have enough coverage. Not having a large enough policy could leave your loved ones scrambling with unpaid expenses and no money to pay those bills.
If you’re looking to purchase a life insurance policy and reviewing your coverage options, you could be wondering how large of a plan you really need to buy. You don’t want to pay for more coverage than you need, but not having enough coverage could have dire consequences.
Your Life Insurance Needs
To determine if a million dollar life insurance policy is enough, there are several different financial factors that you’ll have to calculate. The first is all of your debts. One of the primary purposes of your life insurance is to give your loved ones the money they need to pay off any unpaid expenses that your family would be responsible for paying. Add up any debts that you currently hold, mortgage, car payments, student loans etc. All of these are going to be left to your loved ones if you passed away. This is the starting point for calculating your life insurance needs.
Your mortgage is going to be the largest debt that you have, and that mortgage payment could leave your family with hundreds of thousands of dollars in debt. Another factor to account for is your annual income. Another goal of your policy is to replace your income if you passed away. If you’re one of the main income earners in your family, they would experience severe financial suffering if they no longer had that paycheck, but that’s where a life insurance plan comes in. Your policy will give your family the money they need to pay for essential expenses without sacrificing their standard of living, or having any financial challenges as they go through the grieving period. You’ll want to get a policy that would replace your income up until retirement. You don’t have to buy a policy large enough to replace 100%; most experts only use 75% of your annual salary.
What about any future expenses that your family is going to encounter? Without the additional paycheck, your family could run into financial barriers in the future, like when paying for college tuition for your children. When calculating your life insurance needs, don’t forget to account for expenses that you know will come in the future. College expenses being the most notable costs. A four-year degree can rack up $80,000 or more depending on the university and the major. Having insurance coverage will give your family the freedom and peace of mind knowing they will have the money to send your kids to further their education. Another expense that you can plan for is your funeral expenses, which can cost $10,000 or more.
As you can see, there are dozens of different aspects that go into determining how much life insurance your family is going to need. You want to ensure that you’ve got enough coverage for your loved ones and you won’t leave them with a mountain of debt.
Getting an Affordable Million Dollar Policy
The thought of having to get a one-million-dollar policy (or more) doesn’t have to break your bank. There are several ways that you can get an affordable policy, in fact, most applicants are surprised to see just how affordable their coverage can be.
There are several things that you can do to lower your monthly rates. The first is to apply as soon as possible. The older that you are, the more you’re going to pay for insurance. In fact, your age is one of the biggest factors in calculating your insurance premiums.
You’ll need to focus on your health to save money on your premiums. Unless you choose a no exam policy, the insurance company is going to require that you undergo a medical exam. The better your results from the medical exam, the lower your insurance premiums are going to be. If you want to save money, improve your health through a diet and exercise. Losing the extra weight, lowering your blood pressure, and lowering your resting heart rate will all translate into more money in your pocket every month.
Additionally, improving your health through cutting tobacco products can save you thousands of dollars on your life insurance rates. If you’re listed as a smoker on your application, it could cause your rates to double. With some companies, your rates could triple. If you want to get the most affordable million-dollar insurance coverage, you’ll need to kick your tobacco usage.
The best way to ensure that you’re getting the best insurance rates is to compare quotes from dozens of insurance companies to see which one offers the lowest premiums. There are hundreds of companies that you could choose from, all of them have different systems for calculating monthly premiums, which means you could receive drastically different quotes from two companies for the same coverage.
Million Dollar Life Insurance Policy
Millions of Americans are drastically under-insured, which means their families could be left with thousands of dollars of debt after their passing. Don’t let your family be one of them.
If you have any questions about life insurance or how much coverage you need, please contact us today toll free at 800-866-8780 and our agents will be happy to answer any questions that you have. Life insurance is one of the most important purchases you’ll ever make, don’t put it off any longer.