With all the demands on their time and money these days, most consumers don’t look forward with great enthusiasm to buying life insurance. That’s understandable. Even if people know they should be paying more attention to the issues surrounding life insurance, the whole matter can seem complex and perplexing.
Perhaps the question asked most often about life insurance is: How much do I need?
To many people, life insurance is more puzzling than homeowners or auto coverage. After all, you pretty well know how much your home or car is worth, but how do you put an accurate value on your life?
The answers can be as varied as the needs of any one person, but there are some guidelines that can steer consumers in the right direction.
A common rule of thumb is that every wage earner in your household should have life insurance equal to roughly seven times his or her annual salary. For example, if you make $35,000 a year, you might want to consider $250,000 in coverage.
In a dual-income family, that goes for both partners. In the event that a death eliminates one wage earner’s salary, the surviving family members will be assisted in covering ongoing expenses with life insurance proceeds.
Even spouses who don’t work outside the home should consider life insurance. Taking a purely economic look at the contributions of a non-working spouse, if he or she were to die prematurely, the surviving spouse would need additional funds to pay for someone else to maintain the household and take care of children.
One mistake to avoid is the assumption that just because you have life insurance at work, you’re safely covered. In today’s job market, many people switch employers several times or more during their careers. And while group life insurance may be portable — companies often let departing employees convert group life coverage into individual policies — it’s often unaffordable at individual rates.
This points to another concern that comes up during many discussions about life insurance: that it’s too expensive. The solution? Talking to a qualified insurance agent, who can help review the many options available.
Buying life insurance is no longer just a question of choosing term or whole life, the two types of coverage that once dominated the market. Spurred by competition, most companies now offer a wide variety of different life policies. Your agent can help you choose the type that’s right for you, and at a price you can afford.
And keep in mind that you don’t have to buy the life coverage you need all at once. Your agent can show you how to purchase increasing amounts of insurance as your financial resources permit.
With all of the above in mind, it makes good sense, for yourself and your family, to consider purchasing an appropriate amount of individual life insurance. And because your needs are specific to your own circumstances, you can feel comfortable turning to a qualified agent to help you determine your best, and most affordable, choices.
This article is provided as a courtesy of Nationwide Insurance Agent Bob Muffler, (Tops Plaza) 5833 S Transit Rd, Lockport, NY 14094. Please feel free to contact me at (716) 433-0097 or www.bobmuffler.com. This article is for informational purposes only. For information on your specific insurance needs or situations, please contact your insurance agent.
Filed under: Life Insurance, Lockport Insurance, Nationwide Insurance, Niagara County
