Before you request a term life insurance estimate, you first should determine how much life insurance you need

The Basics of Getting Life Insurance

Answer the following questions to get better idea of your term life insurance estimate

It is a good idea to set your priorities before looking at plan options.

Before you start searching for a term life insurance estimate, there are a few priorities you should identify. The first thing you should consider is your loved ones. Who are your dependents you want to provide? How long do you intend to provide for them? This is also a good time to take into account your existing assets and the value they will possess in the future. If you are a young person in good health, you will probably want to go for a term life insurance policy. Often, young people can secure low monthly rates from insurance companies, which makes term life insurance the more appealing option for many. 

If you are interested in generating cash value with your insurance policy, then you may be a better candidate for whole life insurance. However, for most people, term life insurance is the more accessible option.

How Do I Calculate How Much Coverage I Need

Before you get a term life insurance estimate, you should make your own calculations for the amount of coverage you’ll need

Get an idea of your price range by making some initial calculations.

Calculating the amount of life insurance you need is actually easier than you think. The first thing you need to do is collect some basic information on your loved one’s expenses. Once you gather this information, you can get a rough idea of the expenses your life insurance plan should cover. 

You should also take into account your yearly income. It is recommended that you purchase a plan with a total of 10 or 15 times your yearly income. So if you make 75,000 per year, you should be looking for a total payout — also known as a “death benefit” — of 750,000 or higher. 

There are, obviously, many more factors that will determine how much life insurance you need to purchase. For example, if you have remaining student loans, you need to factor those into your life insurance policy 

Getting an Affordable Term Life Insurance Estimate

Find out how you can get the best estimate possible for a life insurance plan that suits your needs

Your best policy is the one that benefits you and your loved ones.

Beyond your policy, there are a few more factors that will affect your total monthly life insurance payments. For term life insurance, you’ll be presented with term insurance options anywhere from 10 to 30 years. Since these are term life insurance plans, your coverage will expire when you outlive the designated term. Since most term insurance policies are never paid out, you will be paying a much lower monthly premium.

The other two major factors that affect your term life insurance cost are the length of the term, the amount of coverage, and your personal medical history. Depending on the policy you choose, you may have to undergo a physical before getting your term life insurance estimate.

Remember You are Planning for the Future 

Life is unpredictable, so you should gauge your future priorities to inform your life insurance plan

You never know what your future will hold!

Though you may not be married or have any dependents currently, you never know what could happen in the future. Especially if you are purchasing a term life insurance policy as a younger person, you may not know what your future will look like.

That’s why, when you’re estimating the total amount for your life insurance policy it is a good idea to overestimate. In reality, it may only take a little bit more each month to cover your future spouse or children. It is also important to note that term life insurance policies get more expensive as you get older. That may lead you to ask, “When should I buy life insurance?” For most people, you will want to get life insurance when you’re young—in your 20s and 30s—for the best term life insurance rates.  

It is possible that you already have a spouse or loved one in mind while searching for term life insurance. In this case, you should have a conversation with your loved ones about what they will need in the event of your untimely passing. This won’t be the most uplifting conversation, but it is necessary so you can get your loved one’s input.

There are always a lot of moving parts to consider when it comes to getting the best term life insurance estimate, but don’t get overwhelmed! You can work with an insurance company to find out which type of policy works best for your lifestyle and budget. Your insurance policy is supposed to work for you, so make sure that you are satisfied with your coverage and pricing before finalizing your plan.

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