When it comes to the subject of life insurance, a lot of people become uncomfortable when asked
Thinking about one’s mortality is an understandably uncomfortable subject matter. However, when it comes to protecting those whom you care about most after you’re gone, don’t you want to be able to say that you did everything you could to protect them financially? Purchasing a life insurance policy is a wonderful way to do just that.
So, how much life insurance do you need? It is recommended that you take your annual income and multiply that number 10 to 15 times as a starting point. However, how much coverage you purchase should ultimately factor in any anticipated financial obligations including debts, children, or aging parents.
There are number of factors that are considered when quoting someone for a life insurance policy.
Typically speaking, the younger you are, the less expensive a life insurance policy is going to be. This is because when you are younger, you are, generally, in better health. Insurance companies consider you less of a risk to them. The cost of life insurance policies increase between 4.5% and 9 % each year to put off purchasing coverage.
Depending on the state in which you live, some policies may or may not be available to you. Each state may have its own individual regulations that could affect what kind of life insurance policy you can get.
When considering how much life insurance coverage to purchase, consider how much your greatest financial obligations cost i.e. your mortgage. Make sure you purchase enough coverage that will cover these obligations in the event of your sudden death, so that your family is not left with an insurmountable burden.
Policy Coverage Amount
The larger the death benefit, the higher your insurance premiums will be.
Before your premium is calculated, you will be asked for have a medical examination administered for yourself. The exam results will help determine your insurance premium.
How to Determine How Much Coverage to Purchase
Add up your assets
Add up your debts and financial obligations
Subtract your assets from your debts and financial obligations
Decide your policy’s term length
Call us at (301) 948-2010! One of our experienced life insurance professionals will be happy to assist you in going over any and all questions you may have about different coverages.