06 Feb 2013
Getting in early
When you’re a young adult you are thinking about what career you want to pursue, what kind of partner you may want to have by your side and how you are going to enjoy life. You don’t often think about how you are going to protected the people you love should something happen to you. But this can be easier than you may think.
With the ease of the internet you can quickly set up life insurance to protect your family from financial stress in the event that you pass before your time.
But, not all life insurance policies are right for you.
Life insurance is customizable which means you can choose a policy that suits your situation. For example, if you have no dependants then your policy may be smaller. And you can adjust your policy when your life situation changes.
Different companies asses risk differently and not all insurance policies are right for you. To find the policy that suits you best you need to do some shopping. There are some useful comparison websites that can help with this.
Getting on top of this early is the better and cheaper for you.
Older people or people who are in poor health will pay significantly higher prices for life insurance so don’t wait; buy when you are healthy and as early as you can.
The young are gifted not only with beautiful skin but also with dirt cheap life insurance premiums. A young person can receive $250,000 worth of coverage for as little as $300 a year. The older you are however, the higher the premiums are so you want to “lock in at a low rate” when you’re young.
How much coverage do you need?
A general rule is that you should have enough coverage to supplement 5-7 years of your salary. For example, if you are making $50,000 per annum then your insurance should be for $250,000. However if you have a large amount of debt or young children you should consider getting coverage to replace at least 10 years of your income which takes the necessary coverage to a minimum of $500,000.
You will need to consider factors like additional childcare expenses that may be needed if one parent is no longer around, any other assets that your dependents or family can draw upon, how long your children will need financial support for, do you want to support your spouse as well as your children, do you have a mortgage to pay off? How long you will need the policy for? etc.
This post was written by Chantille McDonald a content writer who loves to show people how to make better decisions. Once such way is comparing various insurance websites such as Real cover online.