While you can receive a life insurance quote online in just a few minutes, it may be difficult to immediately determine whether the lowest-priced option is the best fit. That’s because life insurance comes in a myriad of forms and at a multitude of prices. To narrow down the options and find what’s right for you and your family, ask these questions as you carry out a policy search.
How Much Income Would Need to Be Replaced?
Your living situation and age play significant roles in determining how much coverage you need from a policy. “Life insurance is a great tool for protecting heirs that depend on an income stream from a family breadwinner, or to replace the economic value of a stay-at-home parent,” Joe Taylor, owner and founder of Oak Street Advisors in Myrtle Beach, South Carolina, told The Epoch Times. As such, you’ll want to determine how much income would be needed in your absence to support any loved ones who depend on you financially.“For a young couple with children, we will often add the cost of funding any higher education and a mortgage pay-off amount to take any worry about expenses off the table,” Taylor said. “We would subtract any investment or retirement savings from this amount, as those assets can be used to provide some income loss offsets.” If your children are grown and self-supportive, you might need a different level of income to provide for a spouse or leave for other family members.
