In our last post, ‘Determining Your Financial Worth,’ we discussed that purchasing enough term life insurance to cover your income between now and retirement is a good rule of thumb. If you’re currently in the market for coverage, you’re likely finding plenty of information on a wide variety of life insurance products. As you begin your quest for the very best term life insurance, keep this in mind:
Mortgage insurance is designed solely to protect your mortgage investment. If you pass away, during the life of your policy, your mortgage insurance provider will settle your remaining mortgage debt directly with your mortgage provider. If you solely purchase mortgage insurance, your loved ones will never receive compensation for other expenses or debts. If however you are making enough money to cover your mortgage expenses each month, simply purchasing enough general term life insurance to compensate for your monthly income will do the trick.
When you reach retirement, you and your spouse will be living off of the fruits of your labor. Your regular income will no longer be coming in and you will depend upon money saved, investment income, social security and so on. If you purchase enough term life insurance to compensate for your income until you reach this point, and you’ve planned properly, you will no longer need term life insurance. Some agents may encourage you to purchase additional term coverage to help your spouse make financial gains upon your death. At IntelliQuote we instead urge our customers to plan for retirement and purchase coverage to protect them as they work toward their golden years. In short, if you have a viable retirement plan, the best term life insurance protection for your needs will protect you from now until retirement.
Finally, some advisors will suggest adding more coverage to your term life policy to compensate for your child’s college tuition. If you are currently planning to pay for your child’s tuition out of pocket, the same school of thought applies. As long as your income, between now and the time your child graduates high school, will adequately pay for your child’s tuition there is no need to purchases additional life insurance protection.
There you have it, if you’re looking for the very best term life insurance protection for your needs, keep in mind that more is not always better. The goal is to buy the right amount of coverage; not too little and not too much. Have questions? We have a staff of highly experienced, licensed agents on hand to help you find the best term life insurance for your needs. With no obligation to buy, we encourage you to allow us to contact us today.
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