First, consider the different types and what makes them different
Term life: If you're looking to provide financial protection for those relying on your income until your children are grown or until you retire, then term life insurance may be the right option for you. You can choose the term length of your coverage from five to 30 years. Once that term has ended, your coverage expires—unless you renew it prior to that date.
Final expense: If you simply need protection to cover the costs of burial expenses, then a final expense policy may be a good choice.
Permanent life: If you want a policy that lasts your entire lifetime—or offers the option to withdraw funds (if needed) from your policy while you're alive, you may want to consider whole life insurance. This may also be the best option for you if you want to leave an inheritance, as coverage lasts your entire lifetime.
How long will your loved ones need coverage?
If you're already starting to determine "how long," then term life may be best for you. It offers more affordable premiums (for similar dollar amounts).
Consider these questions:
- Do you have a spouse, partner, or other family member that relies on your income for financial support? How many years would they still need your salary to maintain their lifestyle?
- Do you have sufficient retirement funds that could assist them for years to come?
- Do you have younger children that require child care or have other educational needs? If so, do you have a plan—or do they—to attend college? For how long? Public or private institutions? When will that start?
- Do you have a mortgage and when will that end?
Do you want to leave an inheritance?
If so, then permanent life insurance may be best for you because coverage lasts your entire lifetime. That means your family will get the payout no matter when you pass away. Then, you have to think about the expenses you'd want to pay off, plus how big of an inheritance you want to leave.
This helps to provide a perspective on your life insurance needs, but you likely have specific priorities, as well. That's why this is a great time to gather all of your information and secure a policy sooner rather than later—to help ensure those you care about are protected.
Get a life insurance quote online to compare prices. Then, talk to an expert agent, ask your questions, and be confident that you can get the best policy for you.