Getting quotes for term life insurance is a great idea. First if you own a home and have a family, that is probably the biggest reason to get a term life policy. Other reasons one may consider a term life insurance plan is because the life insurance provided by employers is probably not enough, especially if the primary wage earner in the household were to pass on.
So how much is enough term life insurance coverage anyway? Well lets take a look at a average middle class family owning one house and having 2 young children, then you should be able to gage from there if you need more or less...
- To Secure Your Home mortgage: Lets say $175,000
- Children Education (4 years university/2kids) $100,000 each = $200,000
- Income for Family (5 years minimum) Lets say bread winner makes $45,000 a years X 5 years= $225,000 needed
- Funeral/ burial expense $10,000
Total Life insurance need to protect family and ensure a good future: $610,000
Lets say the bread winners employer life policy is 2 times annual salary ($90K)
Looks like there is a short fall of about $510,000 in life insurance coverage.
If the bread winner, in this example passes on tomorrow, their family / dependents will encounter financial hardship and a downgraded life style. Their future does not look to bright in my opinion.
Do not relay on your employers life insurance coverage! Get a term life insurance policy. They are very affordable. They come in terms of 1 to 30 years. An experienced life insurance agent will help you obtain proper coverage.
Don't wait and put it off, thinking you will live a long time to live, because you do not know when that day is.
Secondly the longer you wait to buy life insurance means the price goes up every years as you get older, PLUS if a health or medical condition develops, the price is really going to go up! If you are healthy, young and have dependents... then do something about this now. If you already have a term life insurance plan, then I congrats on being responsible!
So how much is enough term life insurance coverage anyway? Well lets take a look at a average middle class family owning one house and having 2 young children, then you should be able to gage from there if you need more or less...
- To Secure Your Home mortgage: Lets say $175,000
- Children Education (4 years university/2kids) $100,000 each = $200,000
- Income for Family (5 years minimum) Lets say bread winner makes $45,000 a years X 5 years= $225,000 needed
- Funeral/ burial expense $10,000
Total Life insurance need to protect family and ensure a good future: $610,000
Lets say the bread winners employer life policy is 2 times annual salary ($90K)
Looks like there is a short fall of about $510,000 in life insurance coverage.
If the bread winner, in this example passes on tomorrow, their family / dependents will encounter financial hardship and a downgraded life style. Their future does not look to bright in my opinion.
Do not relay on your employers life insurance coverage! Get a term life insurance policy. They are very affordable. They come in terms of 1 to 30 years. An experienced life insurance agent will help you obtain proper coverage.
Don't wait and put it off, thinking you will live a long time to live, because you do not know when that day is.
Secondly the longer you wait to buy life insurance means the price goes up every years as you get older, PLUS if a health or medical condition develops, the price is really going to go up! If you are healthy, young and have dependents... then do something about this now. If you already have a term life insurance plan, then I congrats on being responsible!
