Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Deciding If Life Insurance Is Worth it

Deciding whether or not life insurance is worth it for you depends on numerous factors. If you have a spouse, children, a mortgage, outstanding debts or you own your own business, a life insurance policy can help safeguard your dependents from the financial burdens that may occur as a result of your death. Below we examine five steps to getting a life insurance policy that works for you.

1. Know Your Options

There are two main types of life insurance: permanent life and term life. For some, a permanent policy may make the most sense because it provides lifetime coverage and accrues cash value. For others, a term policy may make the most sense because term policies are typically less expensive and less complicated than permanent policies. 

2. Determine Your Needs

When deciding which kind of life insurance policy is most worth it for you, consider the following:

Do you need life insurance for a specific amount of time or do you require lifetime coverage?

If you are looking for a life insurance policy that will just cover you for a specific amount of time, such as when your children are young or while you are paying a mortgage, you may want to consider a term life policy over a whole life policy.

If you are wealthy and wish to leave an inheritance to your heirs, or if you require a life insurance policy that can also function as an estate planning tool, a permanent policy may make more sense for you.

Are you looking for a life insurance policy with an investment component? 

Whole life insurance policies (a type of permanent insurance) combine two financial products: life insurance and an investment. 

According to NerdWallet, "Some of the money paid into your whole life policy accumulates cash value in the form of a tax-sheltered investment account that the policyholder can borrow against." 

If an investment component is important to you, a whole life insurance policy could be a good fit for you. If you don't care about an investment component, sticking with a term life policy could end up saving you money in the long run.

3. Decide How Much You Can Afford

As mentioned, whole life insurance policies are generally more expensive than term life insurance policies. The specific amount you'll pay for a life insurance policy depends on several factors, including your age, the size of the policy and the insurance company you work with.

4. Get Help From a Licensed Agent

A licensed agent can help evaluate your unique circumstances and match you with a life insurance that is right for you. Speak with a licensed agent now at 1-800-966-7169. 

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected. 

 

 

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

When Is Whole Life Insurance Worth It?

For some, whole life insurance coverage is worth it. But for others, it may be more complicated and more expensive than what they need.

Read More

Types of Life Insurance

There are two main types of life insurance: permanent life insurance and term life insurance.

Read More

Life Insurance 101

Life insurance 101: How well do you understand your life insurance coverage?

Read More

Making Sense of Non-Life Insurance

Non-life insurance is simply any type of insurance besides life insurance. Learn about some of the types of non-life insurance and which may be right for you.

Read More

Understanding Universal Life Insurance

Universal life insurance is a form of permanent life insurance. Find out how it works and how it differs from whole life insurance.

Read More

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that remains in effect for as long as you pay the premiums. Get a quote today.

Read More

Life Insurance Overview

How much do you know about your life insurance coverage? Test your knowledge with this life insurance overview.

Read More

What Is Life Insurance

Life insurance policies pay money to a beneficiary upon the policyholder's death. Here's what to know when shopping for a policy.

Read More

Your Guide to Recommended Life Insurance

Shopping for life insurance? Here are our recommendations for choosing a policy that's right for you.

Read More