When it comes to protecting our family, we tend to concentrate on all the standard guidelines, such as providing them with a roof over their heads, food on the table and decent clothes to wear.
What some of us seem to forget is that we need to provide for them after we are gone. One of the reasons for this is because we never think of ourselves as vulnerable.
Newsflash: we are.
You never know what’s going to happen to you tomorrow. You can’t predict the future, but you can always plan for the worst. Life insurance is one of the only ways that you can protect your loved ones after you pass away. Nobody ones to think about his or her own death, but it’s important that you do.
Purchasing life insurance is super important, but often times people miss the mark in how much life insurance they need to purchase.
I’ve encountered couples that purchase $100,000 life insurance policy and think that’s going to cover their spouse and their kids. After funeral expenses, paying off some debts, and any other unexpected costs; there will be nothing left.
Some may immediately dismiss that they need a million dollar life insurance policy. “That’s just way too much!”, many would argue.
I’m here to say that a million dollar life insurance policy could very well be not enough!
Why a million dollar life insurance policy
Will discuss many of the reason below in why you might need a million dollar term policy. One of the biggest misconceived notions in such a large policy is that they cost is way too much. For some reason I truly believe that people think that a million dollar insurance policy costs 1 million dollars. It doesn’t! Here’s a breakdown of the costs of a $1 million life policy:
$1 Million Life Insurance Rates for Men
|Sex||Age||$1,000,000 20 year Term|
$1 Million Life Insurance Rates for Women
|Sex||Age||$1,000,000 20 year Term|
Still not convinced that you need a million dollar life insurance policy? Here’s some factors to consider:
Buying a new home
The cost of living is only getting harder to meet, which is why picking the right dollar amount for a term life insurance policy is so important. The moment we sign on the dotted line for a new home, we should be thinking of the possibility that, in the event something happens, it will be paid for.
If you were to pass away tomorrow, your family would be left with paying for your house. Would they be able to pay off your mortgage? Probably not. Having enough life insurance coverage can give them the resources they need to do that.
The important occasions
If we take the time to think ahead to how our family will support themselves after our demise, our minds could drift to graduations, weddings, grandchildren and so on. If we end up passing on before all of these things take place we will certainly want to do our part, regardless of whether we are here to witness them, which is why we will need a decent life insurance policy.
Working for yourself
Many of the jobs being offered today will provide term life insurance to their employees, unfortunately the benefits are hardly enough to cover more than just the basics. There are also a lot of people that had coverage through an employer, but have since left that job. While they have a new job, they haven’t thought about life insurance coverage. On the other hand if you venture into your own business, it is a good idea to take out a decent size term life insurance policy so that all would not be lost if you pass away. Your life insurance policy can not only help your family pay off any final expenses but also cushion the financial blow your business would experience if you passed away.
The one advantage to having life insurance coverage through an employer, is that you might be able to purchase a smaller insurance policy to supplement the coverage that you get through your employer. This is a real money-saver instead of having to pay for the whole coverage yourself.
Filling the gaps
There is nothing worse than reaching your retirement years and realizing that you don’t have enough funds to make it, with or without social security benefits. A term life insurance policy is a good way to make certain that if your spouse ends up on their own and they lose the benefit of your social security income, they will not be left out in the cold.
Adjusting for change
Finally, there are several reasons to make adjustments to a term life insurance policy, not the least of which is a lifestyle change. We may start out with enough of a policy to cover a wife and one child, only to realize that our family has expanded, or we purchased a bigger home, that is when we will need to increase our payout benefits.
The more family members that you have that are dependent on your income, the more financial loss they would suffer if something were to happen to you. On the other side of that coin, if you have children that get jobs of their own, and don’t rely on your insurance, you can consider getting a smaller policy.
Take the time to sit down and calculate all of your life insurance needs. There are dozens of different aspects that you need to consider. Having life insurance is one of the most important things that you’ll ever do for your family, but you also need to ensure that you have ENOUGH coverage for your loved ones. Not having enough life insurance could be as bad as not having any at all.
Getting the Cheapest Insurance Possible
When people start looking for a life insurance policy, they assume that it’s going to cost them a fortune every month. In most cases, a policy is much more affordable than you might think. There are several things that you can do to get the cheapest monthly premiums and still protect your family.
The first, and most important thing you can do is to quit smoking. Using tobacco is a sure way to have your monthly premiums go through the roof. Smokers and tobacco users pay at least twice as much as a non-smoker for their insurance coverage. Depending on the company, they could pay as three times more. If you want to get the cheapest life insurance, you’ll need to kick those cigarettes once and for all.
There are a lot of applicants that ask us about e-cigarettes or smoking cigars and the impact that those will have on their premiums, and the answer is, it depends. Some companies will allow you to get better rates for an occasional cigar or e-cigarettes, while other companies are going to lump you in with smokers and charge you the same rates. It’s vital that you find the company that is going to get you the best rates.
Another thing you should do to get the best rates is to improve your health and get in shape. Unless you apply for a no medical exam, the insurance company is going to want to get a picture of your overall health before they accept you for coverage. This means that the better your health is, the more money you’ll save on your insurance plan.
After you complete the initial paperwork from the insurance company, they are going to have a paramedic come to your home to complete a medical exam. Don’t worry, it’s not as bad as you might be thinking. The insurance company is only going to want to see your basic vitals like your blood pressure, heart rate, weight, and several other simple health signs. In addition, they will also require you to give a blood sample and a urine sample to see if you have any pre-existing health conditions that you did not tell them (or maybe you didn’t know about). If you want to lower your insurance premiums, spend some time focusing on your health before you apply for coverage.
The two best ways to do that is through a healthy diet and exercise. Both of these can have a drastic impact on your overall health by lowering your cholesterol, blood pressure, and much more. Not only will you feel better, but also you’ll have more money in your wallet. It’s a win-win scenario.
If you have any pre-existing conditions, you may think that you won’t be able to be accepted for a $1 million policy, but that isn’t true. In just about every case, you can find an insurance company that will give you the insurance that you and your family deserve. If you have any severe complications or pre-existing conditions, it’s important that you follow your doctor’s orders to manage those conditions and keep the effects as minimal as possible.
Using an Independent Agent
The best way to ensure that you’re getting the lowest rates possible is by working with an independent life insurance agent, like ours at Life Insurance by Jeff. Unlike a traditional insurance agent, independent insurance agents represent dozens of the most highly rated companies across the United States. There are several advantages to working with an independent agent versus going through it alone.
The first is that an independent agent is going to save you time. If you wanted to get quotes from dozens of companies by working with a traditional agent, you would have to call all of the companies yourself. You could waste hours and hours on the phone talking to companies, but instead, we can bring the lowest rates directly to you.
Aside from saving you time, independent agents also save you money. Every insurance company has a different rating system for calculating their insurance premiums, which means that you will receive drastically different rates from different companies, even for the same coverage, which is why it’s important to work with an agent that is knowledgeable and experienced working with a variety of insurance companies. Our agents understand the different companies and can connect you with the company that is going to look at your application favorably. If you have any pre-existing conditions like diabetes or any heart problems, we know which companies have experience working with applicants like you and will give you the lowest rates. Maybe you’re a smoker and don’t want to quit, we can help you get the lowest rates for smokers.
There are several different factors that you have to consider when deciding how much life insurance coverage you need. It’s important that you get the perfect amount of insurance coverage for your loved ones. If you have too little, your family won’t have the resources they need to pay off any debts or final expenses that you leave behind. On the other hand, if you purchase too much insurance coverage, you’ll be spending way more every month in premiums than you should be. It’s difficult to find the delicate policy between too much and too little. You’ll have to look at all your expenses, debt, income, and much more. If you’re still not sure if a million dollar life insurance policy is right for you, check out our term life insurance needs calculator.
If you have any questions about a $1 million policy or the different types of life insurance coverage, please contact us today. We can answer those questions and help you get the perfect plan to protect your family from anything life will throw at them. Don’t wait any long to get your life insurance policy in place.