LIFE INSURANCE

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Having too little life insurance can be devastating to your family should you make an early exit. Having too much is an utter waste of money. That makes knowing how much you need--and what type of coverage is best for you--a critical decision.  At Choice One, we will help you navigate the world of life insurance to assist you in buying the right type of plan and the right amount of coverage at a price you can afford.

Overall Tips

• Know the terminology. A premium is the money you pay to keep the policy in force. The death benefit is the payment dictated by the policy to be made upon your death. The beneficiary is the person or persons who will receive the death benefit.
• The cost of term life insurance has been falling, so it may be worth replacing an existing term policy you already have.
• Evaluate whether it makes sense to get an insurance policy on someone else, such as your spouse or business partner, whose death would cause real hardship for you. Insurance policies can be purchased for just about anyone.

Steps

• Determine if you need life insurance. If no one, such as a spouse or a child, depends on your income, then it's pointless for you to insure yourself unless you just want enough to cover your funeral and burial expenses. For the most part, life insurance is protection against lost income and keeping your family from having to incur costs associated with your death.

• Calculate how much coverage you'll need. Determine how much your beneficiaries need to live on, and for how long. Losing a loved one is difficult emotionally and financially, and many dependents will want a period in which they won't have to worry about money. While two years is the average cushion, some people may want to make sure their beneficiaries are set for life. Calculate all expenses for the covered period, including big ticket items like college and mortgages, as well as living expenses like clothes and food. Then subtract the amount of money you think your beneficiaries will make from salaries and investments (remember, they may not go back to work right away). By subtracting all estimated expenses from the income you estimate your beneficiaries will earn, you get a basic idea on how much insurance coverage you need.

• Choose what type of coverage best meets your needs. Insurance is protection, not an investment. Think of insurance in terms of decreasing responsibility as you get older. When you are younger and have kids and a mortgage, you need protection. As you get older, your kids have graduated and you likely have few or no payments left on your mortgage, so you need less protection.

CALL US TODAY FOR A FREE INSTANT QUOTE ON LIFE INSURANCE!