By getting a permanent life insurance policy, you can help ensure your beneficiaries have enough financial resources regardless of when you pass away. But before getting a policy , it’s important to determine how much coverage you need. Without enough coverage, your loved ones could run into trouble. If you get too much coverage, you’ll be paying more in premiums than necessary. Below, we’ll dive into some tips for calculating the coverage you need and finding the right permanent life insurance policy for you.
Calculating the amount of coverage you need comes down to your current financial situation and what you expect your beneficiaries to need. For instance, if you already have significant assets, you may not need to get as much coverage to ensure your family is protected. They can likely use those assets when you pass them down. But if you don’t have enough assets to provide for them, you may want to get more permanent coverage.
That said, look at your budget. The more coverage you get, the more you’ll pay in premiums — so make sure you earn enough to cover these monthly payments.
Here are some tips for picking the best permanent life insurance policy for your situation:
You should first make sure you spend time working out your coverage needs. As mentioned, weigh your budget against your current assets and the amount your beneficiaries may need. If they need more coverage, you may have to make more room in your budget for life insurance premiums.
Each life insurance company will offer you a different quote, so don’t move forward with the first one you receive. Seek quotes from several insurers, then sit down and compare each one. You can contact each company individually online or by phone, or you can use a life insurance quote aggregator to get multiple quotes at once.
There are several main types of permanent life insurance, each with differences in how their premiums, death benefits, and cash value work:
When deciding the amount of permanent life insurance coverage you need, you must consider your current assets, your beneficiaries’ needs once you die, and your monthly budget for premiums.
That said, keep in mind that coverage is just one part of getting a good policy. You’ll also want to look at the types of permanent life insurance available and compare quotes from insurers. By taking the time to look around and research, you can get the coverage you need at a rate you can afford.