Thinking about buying life insurance? If you’re like most people, you’re likely asking yourself, do I need life insurance in the first place? The reality is that it’s too late to purchase life insurance when you need it. Purchasing a life insurance policy is an investment in peace of mind for your family.

 If you’re just starting to look at your options, you need to better understand how the policies work and how much coverage you really need.

How Much Life Insurance Do I Need?

The exact amount of coverage you need largely depends on your personal financial situation. If you’re single and don’t have tons of debt that you’ll pass onto your loved ones, a smaller policy will likely be more than enough. However, if you have children or want to provide for your loved ones more effectively, a larger policy will be in your best interest.

The best way to determine how much coverage you need is to speak with your life insurance provider. They’ll be able to help you calculate how much insurance will best provide for your loved ones.

What Kinds of Life Insurance Are There?

There are two main types of life insurance: term-life policies and whole-life policies. Term life insurance policies provide protection for a set number of years. At the end of that term, you’ll either have to renew your coverage or let it lapse. 

A whole-life insurance policy protects you for your entire life. Once you buy the policy, you’ll have coverage as long as you stay current on your premium payments. Since you’re protected for life, premium payments are often more expensive than those associated with term-life policies.

Who Benefits Most from Each Type?

When asking how much life insurance do you really need, your first decision is what type of insurance will work best for your needs. 

Younger individuals with fewer expenses and fewer ongoing health conditions will benefit from term-life insurance. Term-life policy premiums are based on age and are very affordable when you are young. They also allow more control over how much insurance you buy. 

The best value is to purchase a whole-life policy while you are young. When you purchase a whole-life policy, you lock the rate in for the rest of your life. As long as you make your payments, you will never have to worry about the policy expiring or the premiums increasing as you age.

Get Your Free Quote Today

So, do you need life insurance? Absolutely. Investing in a comprehensive life insurance policy is always a good idea. Contact us to request a free quote for an affordable life insurance policy today.