How Do I Shop for Life Insurance?
When shopping for life insurance, one option is to go on-line and find a company with the ability to provide quotes from several different life insurance carriers. Once you have done this, your next step is to decide on an amount of coverage to handle your life insurance needs. You can do this by using a life insurance calculator which will assist you in determining the coverage amount and the length of time best suited for you. By purchasing term life insurance, you may be able to obtain the desired coverage amount at the most affordable price.
Some items to consider regarding your life insurance needs would be: 1) do you have any children that are financially dependent upon you; 2) do you have a mortgage, and if so do you want to make sure there is enough money to pay off the remaining balance of the mortgage; 3) some families have two incomes, if you were no longer here, could your partner continue to support the family on only one income?
When considering the life event issues listed above, you should make sure that you match the term length of your life insurance coverage to your needs. Always make sure that the term length is at least as many years as your children will be financially dependent. Also, you should estimate approximately $100,000 in coverage for every financially dependent child. The same statement is true when it comes to protecting your mortgage. Your term life insurance coverage must be for at least the amount of years as you have remaining on your mortgage and also for at least the balance of that mortgage at the time you are preparing to purchase life insurance. When it comes to protecting your income for your spouse, you should look to protect this income for a period of 5 to 10 years. By doing this, you will now have the peace of mind knowing that your family may continue to live in the style they are accustomed.
Finally, purchase your life insurance when you are young and healthy. As we get older, our health tends to decline rather than improve. This will allow you to purchase the most amount of coverage at the most affordable price and to be able to keep that low price for your term coverage length.
About the author: Jim Marcinkewicz has been in the life insurance business for over 6 years. He is a big supporter of the American Red Cross and teaches both CPR and First-Aid classes. With two daughters in college, Jim knows the expense it takes to care for your family and enjoys helping others prepare their futures as well. You can reach Jim at 1-800-651-1953 or JMarcinkewicz@Pivot.com.