The vast majority of the adult population should have a life insurance policy in place so that their dependents can continue on without financial worry, and so that they can provide a proper burial for the person who was insured. But before you buy a life insurance policy of any kind, here are some questions to consider:
Do I need a policy? Unless you’re single with no children, or are an older adult who’s financially secure, you are probably well served by having a policy.
Are the befits from my employer enough? You dependents may get a payout from your employer, but it’s often minimal.
Won’t my survivors get my Social Security benefits? These benefits are only given to your spouse if you have dependent children under 18 years of age, or if your spouse is over 60.
How much do I need? A good rule of thumb is that you should have 10-15 times the amount of your annual income. If you earn $50,000 a year, you should have a minimum of $500,000.
Is term or whole life better for me? Term is best for young people with kids and are on the path to financial freedom. Whole life is good for someone with few assets and the need for permanent insurance.
How can I save money on life insurance? The lowest premiums are given to people in excellent health, so by losing 40 pounds or giving up smoking, you could decrease your costs.