Get Life Insurance While You Are In Great Health
Reader’s Question:
How much life insurance do I really need? I was advised that one of the factors that I need to consider when buying a life insurance policy is my age and health. Please give me more details on in which direction I should go.
Lea
Helena, MT
That’s correct Lea. When deciding about how much life insurance you need, your age is one of the vital factors that you need to consider. You failed to mention your age, however to answer your question let’s take these scenarios an as example. If you are 18 years old and you’re single you probably don’t think you need to purchase life insurance, however this is an age when the premiums are cheap. If you have family, a husband or children then you have another good reason for buying life insurance.
Buy 15 to 20 times your annual income
If you are in your 20′s and 30′s, you should consider buying life insurance coverage amounting to 15 to 20 times of your annual income. In most cases, young and single people do not buy a life insurance policy because they do not have liabilities. Again, for married couples with children, buying life insurance is vital. For those who are in their 50′s, the ideal life insurance policy is 8 to 10 times of their yearly income. I strongly recommend the best time to buy life insurance is before you feel that you need it. Age is a factor affecting life insurance rates, the more you age, the higher your life insurance rates will be. So, the rule of the thumb is that you buy a life insurance policy long before you need it.
Category: Reader Questions
