March 3, 2016

How Much Life Insurance Do I Need?

Life Insurance Cost Factors Mesa AZ

Things to consider when choosing the right life insurance policy.

When it comes to life insurance, you want to make sure you have the most suitable policy for you and your family. You also want to make sure you know what you need in the first place and how that will affect your wallet. How do you know?

Let’s start by reviewing some of the major facts about life insurance policy.

Term v Permanent

First, there are two different types of life insurance, Term and Permanent. They’re exactly like they sound. If you choose a term policy, you are planning to pay a fixed premium for a specific period of time (e.g. 30 years), after which the coverage stops unless you extend the policy. If you opt for a permanent policy, you will be paying a higher premium during the entirety of your life, but your coverage ages with you. For the average adult on a budget, a term policy is the standard choice, but talk to your insurance agent about which of the two is better for you.

Other cost factors

The general cost of your coverage also hinges on things like age, gender, weight, lifestyle, and occupation. How would weight affect my policy? Well, for example, if your weight puts your health at risk, your premiums could be higher. Same with lifestyle and occupation—if you have health-risking habits like smoking or a risky job like construction, your premium will likely go up. In fact, anything that could increase your insurance company’s pay out (e.g. medical-related costs) will reflect in your premium.

So what’s the right policy for you and how much will it cost? As you can see, it depends on a lot of factors specific to you and your life, but discussing your needs with your insurance agent is always a step in a more protected direction.

For more questions on the right life insurance policy for you personally, contact the life insurance professionals at Brewer-Lloyd Insurance Group in Mesa, Arizona.