Choosing Life Insurance? 5 Coverage Tips

When you begin the process of choosing life insurance, you are aiming to insure that your spouse or dependent will have the necessary financial protection in the event of your death, and the ensuing loss of your salary, wages or other income. Another benefit is your dependents will not have to pay federal income tax on money they receive from life insurance.

Choosing Life Insurance? Here are 5 Coverage Tips

  1. Take your time. Before choosing life insurance, examine your financial responsibilities and understand what gaps would need to be filled in by life insurance in the event of your death, and for how long.
  2. Be certain your spouse is clear about what needs your life insurance policy is intended to meet. 
  3. If you are younger you will likely need more coverage. You may have higher mortgage payments over a longer period of time, and health care and education bills for children. When you are older, such financial obligations may have decreased and you won't need as much life insurance.
  4. For military families, especially young military families, a term life insurance policy might be the best option, because it can deliver the most coverage for the lowest premium. Term life insurance is intended to protect the holder only for a specified period of time, which makes it especially appropriate for those in the military
  5. Meet with an insurance consultant to review your needs. Take advantage of online insurance calculators to help determine how much coverage your dependent(s) will need and to help find you the best coverage you can afford.

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