This is one of the first questions that comes up when people buy life insurance. The answer varies – not just because of the differences in life circumstances, but also because of diverse policy types. But with certain considerations in mind, you can determine exactly the amount you need.
Focus on What You Qualify For
Life insurance favors the young and healthy. A younger, healthier person can get a policy with a six-figure death benefit. Because of this sizable death benefit, qualifying for a life insurance policy with that amount requires undergoing a medical exam.
By contrast, an affordable policy with a six-figure payout is unattainable for an older person in poor health. That person won’t be able to pay premiums for the same amount of time as someone in the opposite situation, and an insurer issuing a higher death benefit to that individual risks losing a considerable amount of money. For this reason, a guaranteed issue life insurance policy only pays up to $25,000 after a 2-3 year waiting period has elapsed.
Keep Your Budget in Mind
The greater the policy, the more you’ll pay in premiums, and the last thing you want is to be forced to choose between your policy and basic necessities. Balance is key. After all, the point of having a life insurance policy is to leave your loved ones with the best financial cushion you can give them. If you’re younger, it is possible to get the highest amount your insurer offers without sacrificing a substantial portion of your monthly income.
What Do You Want the Death Benefit to Accomplish?
You may decide on a life insurance policy with a goal in mind. An example would be to obtain a policy that leaves enough for your loved ones to cover funeral expenses. Final expense insurance would be the best policy in this scenario, as death benefits range from $2,000 up to $50,000.
With life insurance, you’re not forced to choose policies with enormous death benefits. You can get policies as small as $2,000 if you want. The decision is ultimately yours. When you consider what you can get and what works for your budget and your goals, you’ll be able to pinpoint the policy size you need.
Game Changing Benefits Will Get You a Policy That Fits!
When the time comes, Game Changing Benefits is at your service! We’re devoted to finding you a life insurance policy that fits both your needs and budget. To learn more, call 972-331-1060!