Let’s face it, the subject of life insurance is dull. It can also be morbid. But, if the unexpected happens, it is a necessity; especially if you have young children or a dependent spouse or parent that you want to protect. Although you know you need life insurance, it can be confusing.
Determine What Life Insurance You Need
Life insurance is meant to financially protect those that you leave behind. The amount of coverage that you need is varied based on your personal situation. A good rule of thumb in determining the amount of coverage that you need is to take your yearly salary and multiple it by between five and 10. Use a larger multiplier if you have more dependents and a lower number if you have fewer people who depend on your income.
Getting The Coverage You Need With The Cheapest Life Insurance
After figuring out how much coverage you need, your goal should be to find the cheapest price. First, you should look for an independent insurance broker. This type of broker will have a wider array of policies. Make sure that your broker is paid a flat fee. This will eliminate any conflict of interest between you and your broker. Try to choose a term life policy as opposed to a whole life policy. Term life policies are almost always cheaper.
Do your own research before meeting with your broker. Ask questions and allow the broker to get back to you after they fully research the answers. Don’t be put off by a broker that asks to get back to you. Chances are he is not inept, but just wants to get you the best insurance. Don’t forget that you have 30 days to decide if the your insurance is right. If you have any second thoughts you can get a refund.