Life Insurance is very important to have and is one of the most important decisions you have to make in your life. If you are reading this then you have come to the realization that life insurance is important but now you really don’t know what to do next. Don’t worry because that’s why we are here! One of the first questions you will be asked when you tell your agent you want to buy life insurance is how much coverage you want to buy. If you don’t know how much coverage to buy it’s okay because again, that’s why we are here. In this article, we will be discussing whether or not $750k is enough, how to know if it’s enough, and we will end this article with our words to the stay at home spouse! The following are some key points from this article;

1. The first thing you need to determine when you want to buy life insurance is whether or not you want a term life or a permanent life insurance policy.
2. A term policy is a form of temporary life insurance which provides coverage for a short and specified period of time.
3. Whole life is a form of permanent life insurance which provides coverage for, you guessed it, your WHOLE life.
4. Universal life is another form of permanent life insurance and again provides you with coverage for your entire life but with flexibility.
5. Index Universal life is again another form of permanent life insurance in which provides coverage for your entire life with flexibility and an investment option.
6. Variable Universal life is the last type of permanent life insurance and it does provide coverage for the rest of your life with again flexibility and investment options.
7. Life insurance is not a one size fits all kind of thing and that’s why we can’t tell you whether or not $750k is enough coverage for you or not.
8. Ask yourself a couple of questions such as how much debt do you have other than your mortgage, and do you add to your debt every month or do you pay it down each month? Another question to ask yourself is how much do you spend each month? A good way to find out how much you spend each month is by using your bank statements. How much do you save each month?How much income does your surviving family members (spouse and children) need if you aren’t around?
9. Then you need to add a couple thousand dollars for your funeral costs and like we mentioned earlier if you have savings you can deduct that from the amount you get after multiplying and adding.
10. If you are a stay at home mom or a stay at home dad, don’t downplay your importance. Without you, things around the house wouldn’t get done and you are responsible for a lot of important things such as your children’s well being.
11. If you have 30 seconds you should still out our very quick and simple quote engine below this article so that you can see for yourself what you may be offered in terms of quotes. Not only will you be able to shop for quotes in one place but you will be able to compare top rated companies at the same time.

 Term Life vs. Permanent Life

The first thing you need to determine when you want to buy life insurance is whether or not you want a term life or a permanent life insurance Policy. A term policy is a form of temporary life insurance which provides coverage for a short and specified period of time. Term life is perfect for those who want to fill a short-term need and only need life insurance for that or simply needs a cheap life insurance policy. Term life insurance is the cheapest life insurance type in the whole market which is why we said that if you don’t have a big budget for life insurance to consider term life. Like we mentioned it only provides coverage for a short and specified period of time, this is where the word “term” comes into play. Depending on which carrier you decide to buy a term life policy from you will be given choices of term lengths that you can remain covered for and they usually vary from 5, 10, 15, 20, 25, or 30-years. When your term policy expires you will have a couple of options available. One of the options you have when your policy expires is annually renewing your policy which actually happens regardless of what you want. Annually renewing your policy means that every year you choose to keep your policy you will be renewing your policy for another year but keep in mind that doing this will cause your premiums every year to increase incredibly. Or depending on which carrier, you may have the option to convert your policy into a permanent life insurance policy without having to go through the whole application or prove good health.

If you choose to buy a permanent life insurance policy it means that you will have to choose from a couple different types of life insurance. Whole life is a form of permanent life insurance which provides coverage for, you guessed it, your WHOLE life. This is the most simple kind of permanent life insurance because you simply are given a death benefit and it even provides cash value as well as the other kinds. Universal life is another form of permanent life insurance and again provides you with coverage for your entire life but with flexibility. What we mean by flexibility is that you have the opportunity to change your premiums or coverage amount at any time of the policy because as you grow your needs will grow. Index Universal life is again another form of permanent life insurance in which provides coverage for your entire life with flexibility and an investment option. This type of investment policy doesn’t require your full attention so you can still do your day to day things without having to worry about risk because you will receive a fixed interest rate. Variable Universal life is the last type of permanent life insurance and it does provide coverage for the rest of your life with again flexibility and investment options. This policy is an investment policy that needs your 24/7 attention and you will experience extreme risk because there is no cap floor. All permanent life insurance policies offer an opportunity to build and grow your cash value but index and variable offer your cash value to be invested and can grow quicker than a traditional whole life insurance policy.

Is $750k enough coverage?

It’s hard to protect your family when you don’t know how much life insurance coverage you need. Don’t guess how much life insurance coverage you need because what if your family needs more? You should give it careful thought, because if you die and your family gets $750k what can they do with it? They may be able to invest that money and earn 5% which can amount to $25,000 a year in salary but if your family depends on more than $25,000 a year you need more coverage. Life insurance is not a one size fits all kind of thing and that’s why we can’t tell you whether or not $750k is enough coverage for you or not. You may need more coverage or you may not but that’s something only you can determine. Sometimes you will get a bigger discount if you go up the next band, you can mess around with our quote engine below this article and see what kind of discount you could get going from $750k to $1 million. If you are still debating whether or not $750k is enough coverage or not after reading this article you can feel free to contact us and we can walk you through the whole process so that we can figure this one out together.

How to find out your coverage amount

There are a couple of ways to find out how much you need for coverage. Ask yourself a couple of questions such as how much debt do you have other than your mortgage, and do you add to your debt every month or do you pay it down each month? This is important to ask yourself because you have to make sure you buy more life insurance to pay it off otherwise it will get passed down and become the new debt of your loved ones.

Another question to ask yourself is how much do you spend each month? A good way to find out how much you spend each month is by using your bank statements. Knowing how much you spend each month will give you an idea of how much you need to buy because when you leave you will want to make sure your family’s expenses are taken care of. How much do you save each month? The good thing about your savings if you have put away some of your income into savings or college savings for your children, you can deduct this from the amount of life insurance you need. How much income does your surviving family members (spouse and children) need if you aren’t around? To answer this question you will need to add up your answers from the above questions.

Basically, you should find your life insurance policy amount by calculating your long-term financial obligations and then by subtracting your assets. To find out your final coverage amount you need to multiply your income by 10 and add on $100,000 per child for college expenses. Then you need to add a couple thousand dollars for your funeral costs and like we mentioned earlier if you have savings you can deduct that from the amount you get after multiplying and adding.

For the stay at home spouse

If you are a stay at home mom or a stay at home dad, don’t downplay your importance. Without you, things around the house wouldn’t get done and you are responsible for a lot of important things such as your children’s well being. Both parents or both spouses should be insured because the value provided by you being a stay at home spouse or stay at home parent is valuable and all the things you do need to be replaced. This is because if you really think about it, if you pass away suddenly, who would manage the house, cook, raise the children, and do all the things your spouse doesn’t? At the bare minimum, the remaining parent or spouse would need to pay someone to provide the same services you provide such as child care, that you would provide for free. You need to consider life insurance if you nodded your head to any of these things because like we said already, without you, things around the house wouldn’t get done and just remember that.

Work with us!

Whether you decide to buy a policy with a coverage face amount of $750k, $500k, or $250k, you should still shop around for quotes. This way you can make sure you are getting the best deal possible. You never know what another company will offer you and with life insurance being one of the most important decisions you have to make in your life you need to make sure you are going with the best deal possible. If you have 30 seconds you should still out our very quick and simple quote engine below this article so that you can see for yourself what you may be offered in terms of quotes. Not only will you be able to shop for quotes in one place but you will be able to compare top rated companies at the same time. Or you can always take advantage of our FREE services, yes our FREE services, we are an independent life insurance agency who work with over 60 top rated companies and have zero ties with any of the companies because our loyalty is reserved for our clients and our clients only. Give us a call today so that you can stop worrying about life insurance and enjoy your time with those who are important, your family.

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