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No one ever wants to use a life insurance policy, but life insurance coverage can be a welcomed help following the death of a loved one. Everyone needs a life insurance policy, although how much life insurance you need varies from person to person. Determining how much coverage you need is essential to ensuring your family’s long-term security.
Who Depends on You?
The amount of life insurance coverage you need depends on how many dependents and beneficiaries you have, as well as the financial value of your contribution to your household. To determine your coverage needs, start by assessing how much your death would cost your family. Aside from funeral expenses, this includes the cost of your lost wages and the costs to replace your presence in your home. For example, if you care for your children full-time, a surviving spouse or other family member may have to assume responsibility for childcare or otherwise pay for daycare or other childcare services.
You should also determine how much your lost wages will ultimately cost your family and children. You need enough life insurance coverage to pay for your child’s college education, as well as any other expenses you want to pay for, such as a wedding or your child’s first vehicle. Finally, you need to account for inflation costs and unexpected expenses. Ultimately, it is much better if you leave your family with more than enough, rather than struggling to make ends meet.
Tips for Buying Life Insurance
If you have children living at home, you may want to purchase a term life policy as well as a whole life policy. Term life insurance policies have larger benefit values at lower premiums, but they are usually only payable for a period of between 10 and 30 years.
Gerber Life’s Term Life insurance allows you to choose the coverage and term that best meets your needs, with options ranging from $25,000 to $150,000, and terms of 10, 15, 20 or 30 years. A whole life insurance policy never expires, accumulates cash value and is payable upon death regardless of age, as long as premiums are paid. However, whole life insurance premiums are usually higher than term life premiums, so it is important to purchase a whole life policy as soon as possible to lock in the lowest premiums. With The Whole Life Plan from Gerber Life, you can keep your policy throughout your lifetime at an affordable premium rate that will never increase.
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