Questions to Ask When Buying Life Insurance

With most things we buy, we usually have a few questions that we want answered before we whip out the credit card and seal the deal. It?s no different when you?re looking to buy life insurance. You have questions you want answered. But when it comes to buying life insurance, getting questions answered in a way that makes sense can sometimes be difficult if you don?t have a good source.
The good news is that understanding and buying life insurance is not as difficult as you think after learning the basic principles of the products. In fact, buying life insurance to protect the future of your loved ones can even be an enjoyable experience, especially once you know the answers to your questions.
The most common questions people have when thinking about life insurance are usually:

• How much does it cost?
• How much do I need?
• How do I buy it?

Americans have hit a milestone with life insurance and it?s not a positive one. Life insurance ownership is at a 50 year low and many of those who need it most are not getting the answers they need to feel confident before buying a plan because they don?t feel like they know enough to make a good decision.
How much does it cost?
The majority of the population would be just fine with a simple temporary (term) life insurance policy. Term life insurance is a very inexpensive option compared to some of the more complicated permanent life insurance plans. On average, permanent policies cost 5-10 times more than a term policy because they last a lifetime and generate cash value, but this type of policy isn?t necessary for most individuals.
Term life insurance is primarily used to replace your income and cover financial obligations that have a fixed length of time associated with them, such as a mortgage, student loans, or replacing your income while you?re earning money.
How much do I need?
Now to determine how much you should buy. The best tip I give people is buy whatever amount you can afford. If you only have twenty extra dollars a month, then buy twenty dollars a month worth of term life insurance. Believe it or not, you can get almost half a million dollars of coverage for twenty dollars a month if you?re under forty years old and healthy.
If you are more concerned about being sure that your family will be comfortable for many years to come if you?re not around someday, then a simple needs analysis can be a great way to see how long a certain amount of coverage will provide for those you?d leave behind.