The amount you should pay for life insurance depends on many factors. E.g. Your age (the older you are, the more life insurance costs), the type of coverage (the longer the premium is locked in for, the higher the price), and the risk (if you have health conditions or other risk factors, the price is higher). It is important to only pay for the coverage that you can afford, yet that will meet the needs of your family or business. It is important to obtain guidance from an ethical agency that can help you determine the type of coverage you need for the lowest premium.
President, Lane Independent Agency, Southern California
Not more than you can afford. Any insurance you can afford and keep in force is better than the largest insurance policy you cannot afford and will let lapse. Depending on your age and health, and whether you choose term or whole life, the price will vary tremendously. Try to find the best company, with the highest ratings, longest existence, best caring agents, knowledgeable listing people, and work with them on a plan for now and over the years, for you and your family. Gary Lane, Registered Representative, New York Life, 949 797 2424. Thank you.
When I talk to a potential client about life insurance I generally will have a 2 part discussion.
The first is identifying how much insurance you need. Taking into account replacing income, the mortgage, credit cards and other debt such as student loans, etc. Then we figure out the cost between a term or period of time you need the insurance for example, if you have kids in school at home which you probably should have more insurance than after they have moved out along with your long-term needs. At this point, we will know what the cost is. Can you afford this? Does it make sense and fall in line with your budget?
The second part is taking your budget and determining how much you care afford of that total amount. The reason I use this approach is I believe it is important for you to know how much you need versus how much you can afford. That way you at least know the short-fall you have and can work to filling that gap if possible or make other adjustments which may allow you to afford more.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is mathematics. The older you are, the closer you are to the day that you will die. If you have medical conditions that affect longevity that will enter into the equation. If you want the coverage for a short period of time or if you want the policy to be in force regardless of when you die, that also is a factor. This is to say that the cost of the policy will vary and a good life insurance agent can marry your needs to your ability to pay. Contact one today.
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The first is identifying how much insurance you need. Taking into account replacing income, the mortgage, credit cards and other debt such as student loans, etc. Then we figure out the cost between a term or period of time you need the insurance for example, if you have kids in school at home which you probably should have more insurance than after they have moved out along with your long-term needs. At this point, we will know what the cost is. Can you afford this? Does it make sense and fall in line with your budget?
The second part is taking your budget and determining how much you care afford of that total amount. The reason I use this approach is I believe it is important for you to know how much you need versus how much you can afford. That way you at least know the short-fall you have and can work to filling that gap if possible or make other adjustments which may allow you to afford more.