One of the concerns you may have is what will happen to your loved ones after you pass away. You want the best for them, and life insurance is a way to ensure you’ll have something to pass on to them. But, you may ask, how much life insurance do I need?

Life insurance comes in many forms, and you may feel overwhelmed with options. However, with a few considerations in mind, you’ll have an easier time determining how much life insurance you need.

How Much Will You Pay?

The younger and healthier you are, the smaller the policy, the lower your costs. The amount of time your policy is active also plays a role. For instance, if you’re a healthy 30-year-old opting for a 10-year term life policy valued at half a million dollars, you can expect to pay $25 per month.

If you’re older and want a whole life policy with the same payout, you’re looking at the possibility of paying hundreds of dollars per month for the remainder of your lifetime.

It’s better to choose a policy you can afford because surrendering a policy because of being unable to cover the expenses can cause more issues later on.

However, suppose you’re younger and decide to buy a whole life insurance policy with a savings component. In that case, you will ultimately be able to pay for your premiums with the amount accrued in the account while keeping the death benefit you signed up for.

What Are Your Beneficiaries Needs?

Another thing to consider is what your beneficiaries need. A higher death benefit may be enough for your loved ones to pay off burdensome debts or help pay for the college tuition of younger beneficiaries. You’re passing on more than a tax-free lump sum of money — you’re passing on peace of mind, sparing your loved ones from months (or possibly years) of financial stress.

Are There Other Policies?

You may consider adding a final expense policy if you already have a life insurance policy. This policy s a smaller, inexpensive policy with a payout between $2,000 and $50,000. The beneficiaries can use the death benefit for any purpose, but many choose it to help beneficiaries cover funeral costs. This way, your loved ones will be able to cover these costs while also having the death benefit from your other policy to cover their specific personal needs.

To Learn More, Call Us Today!

You can reach out to us for all your life insurance needs. At Magnolia Insurance Agency, we consider your situation and preferences so that you can get a policy that meets the needs of you and your loved ones. Call us at 770-213-5171 or fill out our inquiry form online for help determining how much life insurance you need.

Life Insurance / By Magnolia Insurance Agency