How much coverage should I get?
There are many calculators out there and they often overestimate the amount of insurance needed. The main reason for this is that they assume you need to pay off your mortgage. If you have equity in your home, why do you need to pay if off? Your beneficiaries can sell the home and split the profits.
We think there is one main determinant on how much life insurance you should get.
- How much can you afford?
What is better? 1,000,000 in term insurance coverage, or no coverage because you couldn’t make the payment.
Our recommendation is to apply for life insurance and get approved. After you’re approved you can:
- Increase or decrease the coverage.
- Increase or decrease the term period.
The insurance company has determined you to be worthy of a policy and you have the option at that time to modify the policy to fit your budget.
We also have the option to shop for you with another company if we think you can get a better price elsewhere.