Plan ahead, your loved ones will thank you.
We always think there’s time, until it’s too late and we leave the ones left behind scrambling trying to figure it all out.
Are you thinking about life insurance? Maybe you are coming up on a potential life milestone prompting you to take action. People get life insurance at all junctures in their lives. When starting a career, getting married, having a family…
Often we wait until there is a significant wakeup call prompting us to make major life changes. That’s ok – we are here to tell you, it’s never too late to make those changes. We are also here to tell you as you get older life insurance will cost you more. It’s good to sign-up sooner! The younger, the healthier – the lower the cost.
Here are some questions you need to ask when thinking about life insurance:
Who do I need to protect?
Depending on your situation, in most cases this is to protect a spouse and your dependents from the loss of income when you pass. A death benefit can help beneficiaries pay off a mortgage, college tuition, debts, daycare and other financial burdens.
Well, what if it’s only me? Think about your future now. Again, as you get older, something happens and your health could decline. It’s best to buy life insurance while it’s affordable and you are still insurable. What if something were to happen to you, and you leave your family with funeral expenses without a way to pay for them. Don[t put that burden on your family members.
How much life insurance do I need?
This depends on the person and what they are looking to leave to their loved ones. Generally your death benefit should be around 10 times your income to cover your salary and more. You’ll need to decide how many years your family would need support, and multiply your annual income by that number.
There are a variety of life insurance options:
- Term: With term life insurance you are covered for a specific, pre-determined amount of time. Premiums are lower than other types, but can fluctuate once the term expires.
- Whole: Do you want to be covered for your entire life? With whole life insurance, you are covered through your life, without an expiration date. On top of that, the policy can accrue equity.
- Universal: With universal life insurance, you can accrue cash value that can be borrowed against. Premiums for this insurance are paid into a policy account and it earns interest. As long as the cash value of the policy is enough to cover monthly deductions, the policy is active. There is also flexibility of being able to change the amount covered and the monthly premiums.
Did you know?
If you don’t have a significant savings, 401K or much to leave your dependents – life insurance is a great way to leave your family with some comfort after you’re gone.
Here are some GREAT TIPS you’ll need when buying life insurance:
- Be honest on your application
- Understand what your life insurance covers
- Choose a coverage that you can afford
- Consider your future needs
Talk with our TEAM at Banas Insurance! We will review your coverage needs, and help you get to the right package, ensuring your loved ones are left feeling secure.