There are few topics people like to talk about less than life insurance. It causes them to think about their own mortality and the hardships their families might face if they weren’t around. Not the topic of conversation people like to bring up.
But it’s not an easy topic to talk about for another reason – it can be confusing for some, generating lots of questions about how to proceed. Good questions. So, here are answers to four of the most common ones to help you make what really is an important decision.
Who needs life insurance?
According to the industry group Life Happens, 63% of Americans view life insurance as a necessity but 30% say they don’t have enough coverage. Yikes. Nearly 20% have only the group policy offered through work, which is often inadequate to cover the major expenses your family could face, and 43% don’t have any life insurance. Obviously, parents of young children should have insurance. But singles who provide financial support to aging parents and empty-nesters who worry about things like funeral expenses or leaving a mortgage to their children could benefit.
I have a policy. How do I know I’m properly covered?
If you already have a policy, it’s never a bad idea to take a fresh look at your coverage to make sure your family will be financially secure, especially if your life situation has changed. Maybe you just got married, or divorced. Had a new baby? Your daughter is heading to college. Life changes and your coverage might need change with it.
How much should I start with?
Sit down and figure what your family’s expenses are and what income would be missing to cover those expenses if something were to happen to you. Look at day-to-day bills, outstanding debts and big items like college tuition, mortgage, weddings and car loans.
For how long should I be covered?
In making your decision, consider your age and the age of your dependents. For instance, you may want a 20-year term if you have young children to make sure their college expenses are covered. On the other hand, depending on your lifestyle, a 10 year term policy might suit your needs better.
Even as you prepare for the future, live life to the fullest. As always, check with your licensed life insurance agent to guide you down the right path.
If you’re interested in getting a quote for life insurance, MAPFRE offers term life with no medical exam.
Click here for your instant life insurance quote: https://www.mapfreinsurance.com/b2cwebapp/lifeQuote
