Do you have life insurance? Do you have enough life insurance? Life insurance is a topic that not many people fully understand.
Many people don’t have any life insurance, some just take whatever their employer offers (most of the time this is not nearly enough life insurance for a person to have), and some don’t have the correct type of life insurance that fits them and their family the best.
Many people also don’t have life insurance because they think it will be too expensive, so they never investigate further. Many don’t look into it also because they think they don’t need it or won’t benefit from having life insurance.
Below is what you need to know about life insurance.
Does your situation call for life insurance?
In some cases, you may not need life insurance. If you don’t have anyone depending on you and never plan on that changing, then you probably don’t need life insurance. However, if you plan on having dependents one day in the future, then it may be a good idea to buy it while you are young and healthy because it is cheaper right now for you to buy life insurance.
Also, if you have anyone as a cosigner on a loan of yours, then you might want to look at life insurance. You don’t want something to happen to you and then have your cosigner be stuck paying your loan.
How much life insurance do I need?
There are a few different ways to decide how much life insurance you need.
Some like to think about how much income will be needed. So, if you are 50 years old, then you may want 20 or 30 times your annual income.
Others like to think about how much they actually need if something were to happen to them. You might want your loans covered, funeral expenses paid for, house paid off, college tuition for your children paid for, and more.
Should I get term insurance or cash value insurance?
These are the two main types of life insurance out there.
Term life insurance is usually cheaper if you sign on when you are young and healthy. It is also more simpler because you know exactly what you are getting.
Cash value life insurance provides coverage for a person’s entire life, but can be more expensive and a lot more complicated than term life insurance.
Do you have life insurance? Why or why not?
