Part of future financial planning should include the purchase of some level of life insurance. Term life is the easiest to qualify for and tends to be more affordable. Below are a few ideas for finding the best policy for you and your family.
Differences in Term Life and Whole Life Insurance
The end monetary value can be vastly different between a term life and whole life insurance policy. You pay an agreed upon monthly premium for both types of policies, but the whole life insurance product builds cash value over time. This is because a portion of the premium gets invested. The term life policy will be worth the face value of the insurance if you die during the covered period. The premium cost for term life is always cheaper due to the fact that it is set at the face value.
Determining the Amount Needed
The final amount needed for your family in the event you die is significantly different for each individual situation. There are several factors that should be taken into consideration. You may want to leave enough money to pay off a mortgage, credit cards debts, pay funeral expenses, or leave a little college money for your children. The priorities you set are what determine the amount you need.
Cost of Premiums
The cost of monthly premiums will be set based on your age, health, amount of coverage needed and the actual price set by the insurer. Prices can be all over the map, which means you should get quotes from several companies to ensure you are getting the most affordable coverage available.
Check With Your Home or Car Insurer
Insurance companies commonly offer discounts for bundled policies. Check with your homeowner and car insurance providers to see if you can get better term life rates through their company. This can sometimes save you hundreds of dollars each year.
Adjust Your Coverage for Life Changes
You rarely need the same level of coverage at 40 years of age that you needed at 25. People tend to take on more financial responsibilities over time, which means there are more bills to consider if you meet an untimely death. You should always revisit your coverage and adjust accordingly.
Contact term life experts like Fearnow Insurance to get life insurance in Florida that is affordable today!