It's important to think long term when it comes to your life insurance coverage needs so that your loved ones are consistently and adequately protected if the worst happens to you. Whether you're just beginning or ready to retire, we've got a few tips to help you better manage your life insurance policy.
get a head start
If you're 20 years old, there's a good chance you're working a job, but maybe not honing a career just yet. Are you going to college or engaging in other activities that increase your career opportunities? Remember that your potential income is often greater than your current one, and that all the stages of your life need to be accounted for when considering a life policy.
seek guidance from a trustworthy source
The wide variety of life insurance policies and coverage options can make buying insurance seem rather challenging. Luckily, there's a wealth of information on the internet, as well as licensed life insurance agents available over the phone and online to address any questions or concerns you may have.
We recommend coming up with a list of questions as you consider your needs during and after certain milestones, like graduating college, starting a small business, getting married, buying a home, raising kids, and retiring. As you research and talk to the pros, you'll gain a bigger picture of your long-term life insurance coverage needs.
don’t put all your eggs in one basket
One of the biggest determinants of your life policy's coverage level will be the amount required to replace your income.
The life coverage provided by your employer typically covers about 2 to 3 times your annual salary, on average. If you make $50,000 per year, it would take a $1 million policy, roughly, to replace your income and account for inflation for 30 years. Your group policy's payout of $150,000 (at max, in this case) would leave your loved ones scrambling to come up with nearly $850,000.
Having an additional individual policy helps let you account for any inflation, debt, or special expenses (like a dependent's education) you'd like to cover. It can also provide consistent protection for your loved ones if you're ever in between jobs and don't have employer-provided insurance.
Buying your own coverage also requires you to do some research and seek professional guidance, which can help keep you from being under- or over-insured (thus saving you major cash over the life of your policy).
make sure you’re getting the most for your money
Whether you already have life insurance or are looking to begin coverage for the first time, you can find reliable, affordable, and customizable coverage through Esurance. Get your free life insurance quote today.
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