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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. 



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