How to Pick the Right Life Insurance

The younger you are when you buy life insurance, the better off you will be in terms of the options and prices.

If you have started shopping around for life insurance, you have no doubt discovered that there are many options available. Since you know choosing the right type of coverage will be crucial to giving your family peace of mind as well as financial security should you die unexpectedly, you need to take a number of factors into consideration when making this important decision. To help you do so, here are some things to keep in mind when selecting life insurance.

How’s Your Health?

When you are trying to pick out life insurance, always take into consideration the current state of your health. Should you want a term life insurance policy, you will likely need to take a physical exam before being approved. If you have an existing medical condition, this could mean your premiums will be very high, or you may in fact be denied coverage. For many people, whole life insurance is an option in these cases, since many companies ask no health questions and guarantee coverage.

How Much Do You Need?

You should always select life insurance that will give your loved ones more than enough financial security if you pass away suddenly. To determine this amount, take your annual salary and multiply it by what you would consider to be your normal remaining life expectancy. For most people, policies of $1 million are more than enough to help their loved ones.

What’s Your Budget?

If you are on a tight budget when buying life insurance, you may want to choose term life insurance. Compared to whole life policies, term life insurance is much cheaper. If you have a term policy, it will have a definite period of years in which it will provide you coverage. Thus, you could select a term policy for 10, 20, or 30 years. However, remember that unlike whole life insurance, term life insurance policies do not build up cash value over time.

What’s Your Age? 

Finally, the younger you are when you buy life insurance, the better off you will be in terms of the options and prices. If you want term life insurance, keep in mind that many companies cut off eligibility for this coverage at age 60. Also, the younger you are when purchasing your insurance, the lower the premium will be, so take this into consideration as well.

By keeping these tips in mind and speaking to a licensed insurance agent if you have additional questions, you can pick the right life insurance for you and your family.