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Do You and Your Spouse Both Need Life Insurance?

Do you and your spouse each have your own life insurance policy? Or does just one of you have a policy? The fact of the matter is that you and your spouse depend on each other, and so does your family. That means that life insurance is not something that only one of you should have, despite the commonly held belief that only the top earner of the household should have life insurance. Both spouses bring something to the table, whether they are the top earner, or they stay home with the children, so it is smart for both of you to have your own life insurance policy, each with the right amount of coverage to ensure that you have enough for your family’s future needs.

Stay At Home Vs Breadwinner

caucasian woman holding a baby — *Stay at home parents contribute to the household more than people think, and need life insurance too!*

So if you’re asking yourself if one life insurance policy is enough for your family, the simple answer to this question is that if someone depends on you, you should be covered by a life insurance policy. Even if you’re not working, or are staying home with your children, you bring just as much value to the household as the breadwinner: breadwinners help pay the bills, but stay-at-home parents help run the house and provide necessary childcare.

Just consider this: if your family didn’t have the person who runs the household, imagine how much money would need to be spent on daycare alone, not including a maid to clean your house, laundry services, eating out, and more. All of that adds up to thousands of dollars a year that your spouse contributes to the household, and is something that needs to be taken into consideration when looking into life insurance policies.

Whether you work full-time, part-time, or stay at home, you contribute to the house and your family, so you should each have a life insurance policy that fits your family’s needs. Now that you know how important it is that both of you have a life insurance policy, the next thing to figure out is just how much life insurance you each need.

How Much Life Insurance Do You Each Need?

Now that we have established that both spouses need life insurance coverage, you might be wondering how to balance the coverage between the two of you. To figure this out, you should add up all your day-to-day expenses, the cost of final expenses, child care costs, the amount of money your partner and children would need for future plans, and any income coming into the house that will need to be replaced.

Looking at all of this will help you determine what your family will need to stay financially secure should one of you pass away. Remember, too, that the stay-at-home parent can qualify for coverage based on the income of the entire household.

What Type Of Life Insurance Should You Get?

If you’re unsure what type of policy is right for each of you, speak to different insurers, or a life insurance agent. They can consider your individual earnings and determine how much coverage you will both need. Not only that, but they will also consider what type of life insurance you should purchase for your family’s needs. For example, term life insurance is great for a specific duration, such as to cover a 20 or 30-year mortgage. If you need more coverage, a whole life insurance policy is a permanent life insurance policy that will cover you for the entirety of your life or your spouse’s life.

Another option for couples is joint life insurance, which will cover both of you under the umbrella of one policy. It is important to note that these policies are more expensive than term life insurance because they are a type of permanent life insurance policy. You can choose between a second-to-die life insurance policy, which either covers your estate taxes or leaves a legacy for your children after you both pass away, and a first-to-die joint life insurance policy that pays out to the surviving partner after one spouse passes away.

The best way to find the best policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas of how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

Questions To Ask Before Buying Life insurance

When it comes to life insurance, there are two things that you can be sure of: you need it in order to ensure your family’s financial stability in the future, and you have a lot of decisions to make when choosing a policy. It takes a lot of thought – and it should: it’s a big, important commitment. So if you’re unsure how to narrow down your choices, and how to decide which policy is right for you, you should first ask yourself the following questions; having the answers in your mind can make the process of comparing life insurance policies and buying the right plan much easier.

How Much Coverage Do I Want?

suitcase full of money stacks — *Before buying life insurance, you will need to determine how much money will be enough for your family when you are gone.*

When determining how much coverage you will need, you have to ask yourself who depends on you and what kinds of debts you have. Typically, the death benefit on your policy should equal up to 10 times your current annual income, but it is important that you take the time to write down all of your current financial obligations, such as your mortgage, childcare expenses, car payments, and any other future obligations. Will you want to leave an inheritance when you pass away? Help your children pay for college? Buy a house? All of these things will need to be taken into account when choosing your benefit amount, and the best way to calculate your life insurance needs is to get help from a trained agent who can help you determine how much coverage you will need.

How Long Should I Have Coverage For?

Once you choose the amount of coverage you need, you will have two basic types of life insurance coverage options to choose from: term and permanent.

The difference between the two is that a term life insurance policy will cover you for a specific amount of time (typically 10, 20, or 30 years), while a permanent life insurance policy will cover you for your whole life. The advantage to term life insurance? It’s cheaper, and can be a great, affordable option if you want to provide income for your family to cover short-term debts and needs. For example, do you have a 30-year mortgage that your spouse would have difficulty paying off if you die? Then a 30-year term life insurance policy is perfect to cover those 30 years until the mortgage is paid off.

If you are unsure if a term life insurance plan will provide enough coverage, look into a permanent life insurance policy, which would allow your family to live comfortably, even after your debts are paid. These policies have a cash value growth potential and can replace income, assist with your retirement planning, and more. Comparing all of your different options will give you a better understanding of which policy is better for you and your family, and how much you can afford.

How Healthy Am I?

african american woman stretching touching her foot with one hand and the other hand backwards in the air — *Ask yourself how healthy you are to get a better understanding of how much premiums will be; the healthier you are, the cheaper it will be.*

This question is important in determining which type of policy is better for you. Life insurance rates are based on multiple factors, and your health history is one of them: the healthier you are, the cheaper your premiums will be, and vice versa. But even if you do have health conditions, there is no need to worry! With a guaranteed issue life insurance policy, such as simplified issue life insurance, you will not be turned down because of your health; you will not have to answer medical questions, or undergo a medical exam.

Will Premiums Change Over Time?

This depends on which kind of coverage you go with. With term life insurance, your premiums start out lower than with permanent coverage and stay at a fixed rate for the term, but if you choose to extend your policy, your rates will go up. With whole life insurance, as long as you don’t let your policy lapse, your premiums are guaranteed not to increase for the rest of your life. If you choose to go with a universal life insurance policy, your premiums will increase with age, but if you have accumulated cash value, this can cover the increases. These are all things you will have to consider and compare when researching life insurance policies.

What Happens If I Don’t Die During A Policy’s Term?

If you opt to get a term life insurance policy, there is a good chance that you will survive the specific term, and if you do not pass away during the term, no one receives the death benefit. You do have the option to keep your policy and convert it into a whole life insurance policy, but you need to be aware that your rates could go up, especially if you develop health conditions. This is why it is important to consider from the start if a term life insurance policy is your best option, or if a permanent life insurance policy is better for your circumstances.

Choosing the right life insurance policy is necessary in order to ensure that your family gets the benefits they need. It might seem complicated and frustrating to find the right one, but it can be done, with some help. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Final Expense VS Life Insurance

Most people have lots of plans for their life, but one thing people don’t often plan for is their funeral and the cost of their final expenses. While these aren’t the most pleasant plans to make, you should at least be prepared financially for when the time comes, and the best way to do that is by purchasing a life insurance policy. You can choose a final expense insurance policy, which is a type of whole life insurance that provides coverage for your end-of-life expenses, or you can purchase a policy that will provide coverage for more than just your final expenses. For example, if you want to leave behind a substantial amount to cover larger expenses, or possibly leave an inheritance in addition to simply covering your funeral expenses, you might want to look into more traditional life insurance. To figure out what kind of life insurance you need, you should compare the different types of policies, and take into consideration your current and future expenses.

Final Expense Coverage

The average funeral costs $10,000; you can choose to purchase a life insurance policy that will specifically cover these expenses, and will help relieve some of the stress and pain of a difficult time for your family. This type of policy, called final expense insurance, or burial insurance, covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and as long as you pay your premiums, your policy will continue until the day you pass away. The cost of this type of life insurance policy will depend on your health and age when you purchase the policy.

Life Insurance Coverage

If you are looking for more traditional life insurance coverage, there are several types of policies to choose from, including term life and whole life. The difference between the two is that term life insurance policies will cover you for a specific amount of time (or term), usually 10, 20, or 30 years, while whole life plans will cover you for your entire life. Term life is ideal if you want to provide coverage for a major but temporary expense, such as a 30-year mortgage, while whole life is better if you’re ok with paying a little more to build cash value and not have to worry about your coverage ending. Either of these policies, though, will ensure financial stability for your family after your passing.

A term or whole life insurance policy will provide your loved ones with one lump sum, or a monthly annuity to your family after your passing, and offer more coverage than final expense insurance – typically anywhere from $250,000 to $1,000,000, or more!

white drawing of a person with 3 arrows pointing in different directions — *When deciding which plan is best for your family’s needs, it is best to compare plans from different companies.*

One thing to be aware of with more traditional life insurance policies is that, unlike with final expense, you will have to undergo a medical exam before you are approved so that the insurance provider can evaluate your risk. If you are older and/or have certain health conditions, you will pay more for monthly premiums than those who are younger and healthier.

Deciding Which Plan Is Best

Final expense life is a great option for those who are older or are in poorer health, and who don’t have or can’t get a traditional life insurance policy. Having this type of policy will give your family some kind of financial stability, at least for the unexpected expenses following your death, but it is important to note that final expense insurance only covers short-term expenses and does not provide anything more. If you want to provide more money to your family to replace your income, or to cover large expenses like a mortgage or college tuition, you should look into a different kind of life insurance policy. The best thing to do is to assess your current expenses, as well as future expenses, to figure out which plan is best for your family, as well as how much coverage you will need.

Purchasing life insurance coverage for your family is a responsible choice, and an important decision. While the thought of dying and not being with your family is difficult, imagine the suffering they will be going through – the last thing you want is for them to suffer financially, as well. Life insurance can help with your family’s expenses for many years and will prevent them from struggling in your absence.

If you’re not sure where to begin looking for a policy, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

5 Signs You Need Increase Your Life Insurance Coverage

Having a life insurance policy is a great first step towards protecting your family’s long-term financial security, but your policy is not something you should buy and then forget about. If you’ve had your policy for a while, it might be time to revisit it: it might no longer be right for your family’s needs, and you might need to increase your coverage to ensure that your family can live comfortably when you are gone. Remember, as your life changes, so will your responsibilities, so if you have experienced any of these following five life events, you should look into upgrading your policy.

1. You’re Growing Your Family

womans hands cresting a heart over her pregnant stomach — *If you are growing your family, it’s important to take that into consideration, and increase coverage for your children’s future.*

When you get married, you make a commitment to take care of your spouse, and life insurance is a great way to make sure you can continue to take care of them and support them even after you are gone. And if you choose to grow your family, you not only add a little bundle of joy to your lives, but you also add a lot of extra expense! According to the US Department of Agriculture, it costs $233,610 to raise a child to the age of 17, and that does not include the cost of college if you choose to help your children out with tuition. If you have recently added to your family, it’s time to increase your life insurance coverage, so you can be sure that all of these expenses will be taken care of if anything happens to you.

2. You Got A Raise

The majority of people purchase life insurance in order to replace the income that their household will lose if they pass away. That means if your pay increases, you should also increase your life insurance coverage, because your current policy will probably not be enough to cover your new income.

3. You’ve Bought A Home

Anytime you increase your financial commitments, you should look at your life insurance policy and consider whether the coverage will be enough in the long run. Purchasing a new home is a huge financial commitment, and the mortgage payments could be too much for your spouse and family to keep up with in the event of your passing, so you might want to add a term life insurance policy, which will provide coverage for the duration of your mortgage or any other long term financial commitments you have.

4. You’re Planning Your Estate

As you get older, you might choose to write a will or begin estate planning so you can leave an inheritance for your family, and you should absolutely include life insurance in these plans. You need to be aware that any inheritance you leave your family will be taxed, and might also need to go towards other expenses, so you will need to increase your life insurance coverage to make sure your family gets what you want them to get, even after the estate taxes and other expenses are paid.

woman and man with walking sticks in a house silhouette — *If your health takes a turn for the worst, and you need long-term care, you will need to increase your coverage to accommodate that.*

5. Your Health Status Has Changed

If you or a family member has been diagnosed with an illness or condition that might require long-term care, it might be time to think about increasing your life insurance coverage. This will ensure that your medical bills or any future medical treatments for your loved one will be covered when you pass away.

They say the only constant in life is change, and that’s definitely true: you might add to your family or move up in your career, your children will grow, and your health might change; one thing that you can be sure of is that your financial responsibilities will increase every time your life changes. This means that it’s important to periodically review your life insurance policy to ensure that your loved ones’ financial stability will not be put in jeopardy in the future.

To make sure you have enough coverage, you can add riders to your policy for additional coverage, or you can search for a new life insurance policy – you might find that you can get one that is better and more affordable. If you need help reviewing your policy or deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Tag: life insurance coverage