It’s been a while since we visited the subject of life insurance so maybe it’s time for you to evaluate the insurance you have and compare it against what you need.
The number one reason to have life insurance is to provide funds for those you leave behind. If you have no one who will need a financial cushion after you die, there is little reason to have life insurance except to cover final expenses. So, when looking at your insurance needs, the first questions to ask are:
- Do I really need life insurance?
- If I do, how much protection do I need?
To help you answer both these questions, try this tool: Insurance Calculator.
If you have a spouse and children, expect the amount you need to be large, perhaps well over one million dollars.
Now, what type of insurance should you buy? This article explains the options well: Which Life Insurance is Best?
Generally, speaking, I prefer “term” life insurance. If the goal is to provide maximum protection, term offers the most protection at the cheapest prices. I don’t like to clutter up insurance needs with investment gimmicks. There are times when other types of insurance will serve you better, but if that’s the case, you probably should talk with a financial planner – not an insurance agent.
If you decide term is best for you, be aware that prices vary. Shop around but make sure the company you select is highly rated by the A. M. Best Co. The article above regarding which insurance is best has some links to tools to help you find the best rates.
Do it now while it’s on your mind.