Purchasing life insurance can take some of the burdens off when thinking about the future unknown and providing for your family. However, there are many options to consider when choosing a life insurance policy. As a life insurance agency in South Dakota, Meyer Insurance understands that everyone has his or her own needs and budgets. As a result, life insurance policies are customizable, and they can be modified along the line when there are new life circumstances. Although it may seem like a daunting process, there are some tips to follow when deciding what life insurance is best for you and your family.
1. Consider Your Current and Future Financial Needs in South Dakota
When it comes to your life insurance policy, take the time to think about what you want the policy to accomplish. For most people, it is meant to provide financially for loved ones in the event you passed away. Think about your current expenses, such as mortgage, vehicles, utilities, etc. as well as how they are paid. If you are the sole breadwinner, it is ideal that life insurance covers these expenses. If your spouse is the breadwinner, or you both contribute jointly to the family’s finances, this may affect the amount of coverage you need.
You also should think about future needs. At some point, your mortgage may be paid off, so paying for that will not be as much of a priority. Or you may have kids for whom you want to provide college tuition. Consider expenses in retirement and other things that may not be a factor now.
2. Think About Your Current Budget
Although life insurance is important, you do not want it to cause you to suffer financially now. There are affordable options available, and any amount of coverage is better than nothing. It is also important to understand that the cheapest policy is not always the best. Search for a company that has a good rating and good customer service reviews. You can also purchase more insurance down the line when you have more expendable income.
3. Compare Life Insurance Products in South Dakota
Not all life insurance products are the same, and the options that you can choose from are term, whole, and universal life. Term insurance is the most affordable option. With this policy, you pay premiums for a set period, like 10, 20, or 25 years, and the policy is only valid during this period.
Whole life insurance is more expensive, but there is no set time it is valid. As long as you continue to pay the premium, which remains the same throughout your life, it will payout when you die. This policy also builds up cash value over time, which you can borrow against if necessary. Universal life insurance is similar to whole life, but it offers more flexibility regarding the cash value and when you can take it out. Keep in mind that taking money out may affect the total payout amount.
4. You Can Ladder Insurance Policies
Perhaps you want your spouse to be covered for life, but you only want to provide for your children through college. You can cover these separately by laddering your policies. You can have one whole life policy and a term one that is only valid for the next 15 years, or so, to cover when your kids are minors. Doing this can be more financially doable while maximizing your coverage during certain years.
5. Review Your Policy Regularly
Life is full of changes, and just as you should review your will at certain times, you should do the same with your life insurance policy. Some circumstances that may warrant a review to increase or decrease your coverage include:
- Birth of a child
- Increase in income
- Spouse becomes employed
- Loss of a job
- Children graduate from college
Get a Quote From Meyer Insurance in South Dakota
There are many things to consider when choosing individual life insurance in South Dakota. Discuss your needs with Meyer Insurance and let them help you come up with the best policy for your needs and budget. Whether you are looking for a short-term or long-term policy, they have what you need to provide for your family. As an independent agency, they can compare policies from numerous companies to find the most affordable fit. Contact them to get a quote today.