Is life insurance part of your financial plan? If not, you’re not alone. For many people, life insurance simply isn’t a priority. They think it’s not important or that it’s too costly.
Life insurance is a way to help protect your loved ones from financial burden should something happen to you. If you carry any debt or have people who rely on your income to make ends meet, you need to think about buying a life insurance policy. It can help bridge the gap of your lost wages until your family gets on their feet.
Before buying a plan, think about how much life insurance coverage you need. Most people don’t buy enough to fully protect their families. As a general rule, take your annual income and multiply it by the number of years you’d like your family to receive support. You may also want to consider adding extra for funeral costs, outstanding debts, your mortgage, and college funds. It’s always better to leave behind too much than not enough.
If you’re putting off buying life insurance because you can’t make sense of the different options, do a little research or talk to a financial planner. Get the facts to help you make an informed decision about life insurance. Many plans have a lot of features and quirks you may not have thought about.
Want to test your knowledge of life insurance policies? Take this simple Health IQ quiz about life insurance to find out how much you really do know and what you need to learn. Those who score well also have the opportunity to apply for Health IQ’s special rates on life insurance, which helps health-minded individuals save on their life insurance premiums.