If you’re looking for life insurance, it can be an overwhelming experience. With all the different options out there, it can seem like you’ll never find the right policy for you. However, try not to get too stressed.
Here is some information that will help you select the perfect policy for your needs.
Do I even need life insurance?
While it might feel like everyone around you is starting to get life insurance, be aware that not everyone needs a policy. Whether or not you need life insurance is based purely on your circumstances. If you do not have any dependents, then chances are you don’t actually need life insurance just yet. However, if you have dependents (children, elderly parents, a spouse) then it’s time to start looking for a policy. Additionally, if you have any major debts such as a home mortgage or student loans, then you should also consider getting a policy.
How much coverage do I need?
There is not a clear answer to this question because it depends on your individual situation. The amount of life insurance you need depends on your sources of income, the number of dependents you have, your debts, and your lifestyle. As a general rule, your policy should be enough to cover 5-10 times your annual salary.
While there are many different life insurance policy options, the two most common are term life and whole life. Term life insurance is simple to understand, affordable, and highly customizable. On the other hand, whole life insurance tends to be far more complicated and more expensive that term life plans. This type of insurance is usually better suited for individuals with extensive financial portfolios and excess resources that they are free to play around with.
Use this information to help you choose the right life insurance policy to fit your needs. For assistance in finding the right life insurance, turn to the experts at John Scott Insurance. Our knowledgeable professionals are ready to assist you with all your insurance needs. Contact us to get started today.