There are things that we all must do to make it as a grown up in the world. The term ‘adulting’ has come to encompass these sometimes onerous tasks. It means everything from going to bed early on a work night to setting up auto pay on your bills so you know they’ll always be paid on time. Another task that counts as top-level adulting is getting a life insurance policy. When you need to buy life insurance for the first time, call the independent insurance agents at Security INsurance Group. We are staffed by independent agents, which means we don’t work for the big insurance agents, we work for you! We will find the policy that fits your needs and your life the best.
How Much Coverage Do I Need?
How do you much coverage is the right amount? There are a few rules of thumb to consider what level of coverage to choose. One way to choose an amount of a payout is to take your annual salary and choose the coverage that would pay that amount out to your beneficiaries. The amount you want to leave behind in the case of your untimely death depends greatly on who you are leaving behind. If you are a single, young professional, you may want to cover funeral costs and leave a nice gift for your parents or siblings. When you marry, you’ll want to make sure you leave enough for your partner to pay off bills, the mortgage, and to transition to their next phase of their life. Once you have children things get a bit more complicated. You’ll want to leave behind enough to replace at least one year of your income, pay off the mortgage, and enough to set up college funds for any children.
Whole Life and Term
When you’ve decided how much coverage you think is appropriate for you, the next step is to decide which type of policy to buy. There are two main types, whole life and term. Whole life policies are just that, as long as you pay your premium, you can keep that policy for the rest of your life. Your payments can be used to build a cash value upon which you can later draw.
In contrast, term life insurance policies are good only for a distinct period, say up to the age of 50. After that term expires, you’ll have to get a new policy. Term policies are generally more affordable but are self-limiting. If you are young and healthy, either policy is going to offer your inexpensive monthly payment, or premiums. So the decision comes down to what you think your future prospects are and if you want to use the policy as a savings account.
But I Have Coverage Through My Job
Getting life insurance through your job is commonly referred to as group life insurance and should always be taken advantage of. Getting coverage through a job can mean low premium and can mean a guarantee of coverage for people with preexisting conditions. But, just because you can get coverage, doesn’t mean it is enough, especially if you are married with kids. Employee coverage often maxes out an amount that is equal to a year’s salary. If you are married with kids, this can be a great bonus, but the meat of your coverage can still come from a private policy. Be sure to let your spouse know if you have a policy through your work so they know to collect in the unhappy event of your death.
When you are ready to purchase life insurance, call the independent insurance agents at Security Insurance Group. We can walk you through this bit of essential adulting! We also offer auto, home. and business insurance, so call us for all your insurance needs!