Securing Your Family's Future: Life Insurance Basics

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2 Things To Consider About Life Insurance

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Life insurance is a must for every individual. When you pass away you don't want to leave your family in a difficult financial situation. Can you imagine how hard it would be for your family to not only mourn your death, but to also be left with a financial mess? It is up to you to make sure that you are prepared for any situation and have life insurance for your loved ones. Here are some things you should know about getting life insurance.

1. You Should Get It While You Are Young

When you are a young adult you probably aren't thinking about death. You are at the prime of your health. However, when you are young and healthy is the best time to get life insurance. Life insurance policies are calculated based on how healthy you are and your risks in life. So if you work at an office job, and are healthy you will pay less in life insurance than someone who sky dives for a living and has high cholesterol.

Once you lock in your life insurance policy, it is locked until you decide to change it. Therefore, even if you get diabetes later, your premiums will still stay low on your policy, because the physical was done earlier.

2. You Should Get Enough To Cover Your Debts and The Living Expenses Of Your Family

Many people wonder how much they should get in life insurance. There are many factors that go into that decision, however there are some common themes. The first is that you should have enough insurance to cover your debts. This includes your house, cars, consumer debt, and so forth. Thus, calculate all your debt and make sure that it is included in the policy.

Second, if you have a family, especially if you have young children you need to calculate how much you think they will need to live off of. You aren't trying to get them to retirement, but you don't want your spouse to have to be the primary breadwinner and the primary care giver. If you can give them living expenses for at least some time after your death it will allow them to get back on their feet without worrying about money.

These are just a couple things you need to know about getting life insurance. For more information, talk to a professional such as 1035 Exchange.