Insurance. We all need it, but nobody likes to think about it.
The world of insurance can be an overwhelming place for many. There are hundreds of varieties, all at different price points, with their own highly funded marketing team telling you why you need them.
In this post, we’re going to dive into life insurance.
In the healthcare industry, we’re all familiar with the unfortunate reality that life is unpredictable and the worst can happen at any time.
Although it’s not fun to dwell on that fact, it’s important to prepare and make sure your loved ones are protected if something happens to you.
We’re starting with life insurance because most people are aware that they should have it, but don’t know what type they should own, or how much it should cover.
Life Insurance Do’s and Don’ts
Don’t: Assume that just because you don’t have kids, you don’t need life insurance.
Do: Consider all of the people in your life that may be affected financially if something were to happen to you.
Do you have a spouse or partner that relies – even partially – on your income? Do you have co-signed loans with your parents or another loved one? Do you have a house with a mortgage that would need to be covered?
These are just a few examples of scenarios when you may want to have life insurance to protect your loved ones.
Don’t: Assume the life insurance provided by your employer is enough to cover your needs.
Do: Put some serious thought into how much life insurance you need.
One rule of thumb is to multiply your yearly income by 7. Doing that would provide your loved ones with at least seven years of income if something happened to you.
Another – more accurate – way to calculate your life insurance needs is to actually calculate the expenses that would need to be covered if you passed away. Add up your mortgage, future college costs for your kids, money to support your family for a period of time, and any other expenses. Then, once you subtract the amount of savings that you already have, you arrive at your life insurance need.
This may seem time consuming, but there are calculators that help you decide exactly how much insurance you should have.
We actually have one available on our website here: Term Life Insurance Quoter
Don’t: Sign up for a complex life insurance policy that you don’t fully understand.
Do: Research your options and make sure you have a policy that fits your needs.
We see a lot of instances where people are sold a complex whole life insurance or universal life insurance policy that doesn’t actually fit their needs. Now, that doesn’t mean that these are bad policies. But they can be sold to people who aren’t necessarily a good fit.
In most cases, especially for young professionals, we recommend a low-cost term life insurance policy. Term life insurance is straightforward and normally much cheaper than a whole or universal life policy.
With term life insurance, you choose an amount of coverage and length of coverage, and then you get quoted a set monthly payment for your whole term.
Don’t: Put this decision off until “next year”.
Do: Take some time and figure out your life insurance needs ASAP.
You know as well as anyone, that life is unpredictable, and it’s best to make sure your loved ones are protected. These days the barrier to owning life insurance is extremely low. Online platforms like ours make it extremely easy to compare quotes and sign up for a policy in minutes. It just doesn’t make sense to wait.
Give It A Try
InvestRx specializes in helping healthcare professionals, like you, plan, save, and invest. Insurance is one of the first things we cover in a financial plan. That’s why we made it extremely easy to get quotes, compare your options, and even sign up for insurance online.
No need to get bombarded with emails, or get pestered by a pushy salesperson.
Try our online calculator and get life insurance quotes today.
Did you like this article?
We post a new blog each week. Sign up below to get them delivered straight to you inbox.
Millennial Money Questions Webinar
Want to learn more about how to solve the most common millennial money questions? Watch our free on-demand webinar today!