Hey, this is a good idea!
Give yourself a hand for doing some responsible adulting here.
Ultimately, its about protecting the people you love.
What now, though?
How much life insurance should you buy?
And how can you confirm to get a good deal?
(There are other kinds of life insurance, but they can get really, really expensive.)
When you buy the policy, you choose the term usually five, 10, 20 or 30 years.
The younger you are, the cheaper a life insurance policy is.
Once you purchase a policy, the premiums will stay exactly the same throughout the term of that policy.
By getting in early, youll be protecting your loved ones at the best price possible.
Also, keep in mind that term life insurance is probably cheaper than you might think.
For example, rates start at around $20 a month at an online insurance company calledBestow.
We like Bestow because its fast and easy and affordable, and the whole thing is done entirely online.
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Now, a million-dollar policy sounds nice, but that can get costly too.
The question is,how much insurance do you really need?
But it doesnt have to be.
For starters, lets think about what life insurance isfor.
Why would you subject people you care about to that hardship if it is easily fixable?
Debts factor into it, too.
So your life insurance policy payout could pay for the mortgage.
The payout could also pay for funeral expenses, credit card debt, child care and other expenses.
In summary, here are the three biggest factors to keep in mind:
1.
Your Income
Look at what you make annually and how long you plan to continue working.
If you make $50,000 a year and plan to work for 10 years, thats $500,000.
Your Children
Consider the ages of your children.
If theyll be on their own soon, theyll no longer need financial support from you.
Think about college tuition for older children, and the cost of child care for young children.
Your Mortgage
Figure out the terms of your mortgage.
If you have 20 years left on your mortgage, youll need more coverage.
What you really want to do is think of how long youll be earning income, Weisbart said.
What will you lose if you die today?
And that should be the amount of insurance you buy.
And dont be scared away by the idea of a half-million-dollar policy.
People tend to overestimate the cost of life insurance.
Thats another reason why its worthchecking out your life insurance optionswith an online company like Bestow.
Youre doing it for them.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
Bestow Life Insurance products may not be available in all states.
Policy limitations or restrictions may apply.
Not available in New York.
Our utility asks lifestyle and health questions to determine eligibility so that avoid requiring a medical exam.
Rates will vary based on underwriting review.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
