If you are planning on taking out a life insurance policy, there are many considerations to discuss and one of the most important is figuring out how long the policy should last.
Right now, you are in a moment where life insurance becomes an important necessity. Maybe because you are no longer single and a baby is on its way or maybe you have people depending financially on you that have no one else to rely on… So, what would happen to them if you die unexpectedly?
Therefore it’s super important for you to have a clear understanding of how much life insurance coverage you need and how much it should last.
What are my options?
As you may know, there are two types of life insurance: Term-life and Whole-life insurance. The main difference between them is that a whole-life insurance policy lasts for the remainder of your life and the term-life means that you get to choose for how long the policy will last, then the policy expires.
Most term-life policies last for 10, 20 or 30 years and this means that the policyholder will pay the premiums over that period of time and if the holder dies at some point during the length of the policy, then the beneficiaries receive the death benefit.
Whole-life insurance lasts for the remainder of the policyholder’s life, this means that the person will pay premiums until he/she dies. The cost of these premiums are more expensive than Term-life insurance but the policyholder doesn’t have to worry about the policy’s expiration date.
There are many online insurance estimators that can help you a lot to figure out how much life insurance you need. Choose the length of your life insurance policy based on that.
How to chose my coverage
Your own personal situation plays a determining role. Let’s say you have a child and you want to be able to provide for them, in this case, life insurance should cover at least 25 years, this should be enough time for them to reach adult age and provide for themselves.
Maybe you don’t have children, but you and your partner just got a new house and you don’t want your companion to have to sell the house if you are no longer around to help with loan payments. In this case, the length of the life insurance policy should be at least 30 years.
Also keep in mind that the policy cost will be proportional to its length, so a 30-year life insurance policy will be more expensive than a 15 year one.
What’s the best age to get life insurance?
This is very difficult to answer because it depends solely on your own circumstances. There are however some considerations that you should have in case there’s someone financially depending on you.
Life insurance costs rise as you get old, so the sooner you get one – if you really need it – the more death benefits your family will enjoy. Remember that life is very unpredictable so if they depend on you then is best that they get coverage as soon as possible.
Life insurance is a good option if you actually need it, otherwise, you’ll be wasting money on something you wouldn’t use. It will be unnecessary insurance, very similar to those PPI policies.
It is important that people get rid of insurance they don’t need and it is also important that people claim the money from any mis-sold policy they may have.
That’s what people are doing right now, they are claiming the money from mis-sold PPI insurance policies back. This represents tax-free money they can use for anything they want.
You just need to click here to make sure that you were not unfairly charged for this, and if you were, start the claiming process now. Remember that the final date to file any claim regarding PPI policies is the 29th of August 2019 and after that point, no one will be able to file a claim.
Protecting your loved ones means to make sure that you have solid ground for them in case you are no longer around, but it also means to reclaim funds that are rightfully yours and put them to good use. Don’t wait until it’s too late to start claiming what’s yours to provide for the ones you love.