As it stands right now, there are three things that are pretty much certain right now. You will pay the IRS tax one way or another, eventually you’re time will come and you will leave this earth, and Brett Favre should have retired last year. Sorry, Favre fans; but you know it’s true.
For now, we’ll ignore the IRS and the 41 year-olds 17 interceptions, and we’ll focus on the Grim Reaper. Sorry to be morbid, but it’s a fact that you are going to die. When you die is a whole other question. Knowing that this is a reality and you can’t avoid it, I assume that you have life insurance in place, right? Maybe my assumption is incorrect.
A recent study in the Wall Street Journal reported that only one third of all Americans have life insurance. When I read that, I was amazed. How could this be? We all know it’s going to happen, we all know we’re going to die. Why not take care of our family just in case it happens sooner than expected?
If you’re still one of those people who does not have any life insurance, I’m here to give you reasons why you need to go out today and buy it, especially term life because it’s so inexpensive compared to the amount of protection it provides.
What Type of Life Insurance is Right For You?
There are two primary types of life insurance: whole life and term. For most people, term is the right answer for which type of life insurance you should have. The difference between the two forms of life insurance is this: if you have a term policy, your beneficiary receives the amount of the policy if you die within the term you’ve specified (one year to 30 year terms). With whole life insurance, you get the term policy coverage plus an investment component that you can borrow against.
How much Life Insurance Do You Need?
Life insurance is for one thing and one thing only: income replacement. The idea is your life insurance will take care of your family when you’re no longer here. You may only be in your twenties or thirties and expect to live many more years – but the reality is sometimes life doesn’t turn out as expected. Being prepared for the worst is much more peace of mind than simply hoping you live long enough to provide for your loved ones forever. Most people want to leave enough money so their family can live debt free and to not be overly concerned about their finances. Most people are unable to save enough money to provide for their family for years after their passing, which is why we turn to life insurance policies.
Rather than just picking a number out of the air, here’s how to analyze how much life insurance coverage you need – take these numbers to the life insurance agent of your choice to get the policy you need:
- determine how much money you require annually for living expenses
- how many years you want your surviving family to have that amount provided for them
- what debts would you want to pay off, and how much are they?
- how much your burial expenses and funeral would cost
Get a Free Quote from Accuquote
Before you purchase your life insurance policy, be sure to shop rates. A great resource to compare rates is Accuquote. Accuquote clients typically save up to 70% on their life insurance premiums. [elementor-template id=”4007″]