Go for Permanent Life if:
- You want your family to have money to support them when you die.
- You have a large estate, in which your family will face estate taxes when you die.
- You know that your family will need your financial support all your life. For example, you have a child with disability.
- You want a long-term investment as a supplement to your policy.
Go for Life Insurance if:
- You want a basic and uncomplicated coverage.
- You prefer a policy with affordable rates.
- You intend to use the policy for a specific time period. For example, to cover the mortgage or the education of the children.
Factors That Determine the Price of Life Insurance
One of the main considerations for the annual rate of life insurance is the type of policy you buy. It also depends on the duration of term (for term life policy) and the coverage amount. This also includes the following:
- Health – You pay less if you are healthier.
- Hobby – The more risky your hobby is, the costlier your coverage is. For example, scuba diving and motocross racing.
- Smoking – You pay less if you do not smoke compared to smokers.
- Gender – Men pay more than women.
- Age – The younger the policyholder is, the less amount to pay.
Determine the Amount You Need to Buy Life Insurance
The easiest way to figure out the amount you need to allocate to life insurance is to think about how you can support your family financially when you die. Follow these steps:
- Multiply your income to the number of years you want your policy to cover.
- Include college costs, debts, mortgage, and other financial responsibilities.
- Add the cost of services that the policy needs to replace.
- Subtract other insurance policies you buy as well as your savings.
An insurance agent can help you calculate the amount you need to purchase. The professional will also guide you through the whole process. Buying life insurance will give you a peace of mind knowing your family can continue life with less financial problems even if you are not there anymore.
Here at Western Pacific Insurance, we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (702) 932-3105 or Click Here to request a free quote.