Not many people are into the prospect of buying life insurance. And some are not to blame since confusion over how much and what type of life insurance to buy is one of the top reasons people give for not having life insurance. But that’s doesn’t always have to be the case since numerous benefits are destined to following when you decide to take up life insurance coverage.
If you’re confused about buying life insurance, then you have definitely come to the right place. Below are some of the best tips on how to get life insurance for the first time without pushing yourself to the limit.
Determine Your Current Financial Situation
Before you rush over getting and comparing life insurance quotes, you need a true picture of your financial health. This action goes a long way in helping you figure out what type of life insurance you need and how much. Consider what you already have in place to support loved ones who depend on your financial.
That includes an emergency fund, retirement savings and any life insurance coverage through work. You might find that you’re not as prepared for the unexpected as you thought in the first place.
Know How Much Coverage You Need
The vast majority of individuals underestimate how much life insurance they need. They tend to think only about how much would be needed to pay off their major debt, such as mortgage. But they should factor in how much more would be needed to help a spouse or partner pay bills, support children, pay for college tuition or cover any other long-term need.
A great rule of thumb is to have a policy with a death benefit equal to 10 times your annual salary. Bear in mind your own situation and financial goals might require that you have more or less than that amount. The good news is an experienced financial planner can help you come up with a more-precise figure. That’s what you need to make an informed decision in almost no time.