Life insurance: Do you need it?

The most frequently asked question about life insurance is:  Under what circumstances would I need life insurance?  The answer depends greatly on your situation.  Review these statements and determine which apply to you.

• I am married.
• I have children.
• Our family recently welcomed a new baby.
• I am single, but I have dependents (a child or an elderly relative) who I support.
• I am the sole breadwinner in my household.
• I recently bought a house.
• I will pay for my children’s college education.
• I own a business.
• My family has a history of illness, such as diabetes or heart disease.

Life insurance tips

Here are some suggestions to help you look for the best life policy for your family’s needs:

• Get the right amount. Remember that the amount of life insurance you need is directly related to the dependency of your family. An eight-year-old child is more dependent than a 20-year-old already in college. Plus, knowing how much coverage you need prevents you from paying for unnecessary insurance.
• Start young. Get your life insurance while you’re young. Generally, premiums are cheaper for younger people because they are healthier than the rest of the population.
• Live healthy. Don’t smoke. Tobacco users pay more than twice the premium as non-smokers.  Maintain a healthy diet and exercise reigiment and routinely visit your doctor for annual health evaluations.
• Dual incomes? If you and your spouse are primary earners, get life insurance for both of you. That way, if either of you passes away, the family’s standard of living will not suffer.
• Prepay the premium. Ask the insurance company if you can pay your premium in advance, instead of monthly. This approach will save money on administrative or handling fees. Not all companies do this, but it never hurts to check.
• Buy ‘bulk.’ Some insurance companies charge less for buying more. For example, it may be cheaper to purchase a $250,000 policy rather than the $230,000 you need.
• Don’t rely on employer-provided coverage. Many group plans limit the amount of coverage offered, which may not be enough for your needs. Additionally, you likely cannot take the life insurance with you if leave your job.
• Keep your coverage current. Major life events will impact the amount of coverage you need. Many events—such as having a child, getting married or buying a big house—will increase the amount of coverage you need. Others—such as children leaving the roost—may decrease the coverage you need.

Losing you would be painful enough for your family. The right life insurance can at least alleviate concerns about the financial implications of your death.

 

V.F. McNeil Insurance is a local, Connecticut Trusted Choice^® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs. You can visit us online at www.vfmcneil.com or call a (203) 481-2684.