Some types of insurance coverages are mandatory, while others are optional; however, purchasing optional types is often the only way to protect yourself. One type of insurance that is optional is life insurance. If you are considering purchasing a policy and are not sure what type to buy, here are several things to evaluate as you make your decision:
Determine What Your Goals Are
Life insurance is something that you can purchase for a variety of reasons, and determining what your goals are for the policy is a good first step to take. One reason some people purchase life insurance is simply to have a way to pay for their funeral expenses. If this is the reason you need life insurance, you may not need a very large policy. You would only need enough coverage to pay for your funeral.
Other people purchase life insurance as a way of protecting their spouse. For example, if you earn the majority of the income in your household, you may want to purchase a policy that would pay off your house, send your kids to college, and pay off any debts you have if you died in the next 10 or 20 years.
There are many other reasons people purchase life insurance, but you should carefully consider what the reason is that you want to buy a policy.
Consider What You Can Afford
Next, you may want to get some quotes to find out how much life insurance costs. There are several types of life insurance available, but the main two types are term life and whole life. Term life insurance is typically more affordable than whole life, but it only lasts for a certain length of time. Your age will also affect the costs of life insurance and the coverage amount you choose also affects the costs of the premiums you will pay.
Look at Other Policies You Have
You may also want to consider any life insurance policies you currently have. For example, your employer might offer life insurance, which means you might already have some coverage in place. If you already have coverage, you might need less coverage with the new policy you purchase, but this will depend on the amount you have and the amount you need.
If you are ready to purchase a life insurance policy, contact a local insurance agent. He or she can help you find a policy that is right for you, your budget, and your goals.