4 Ways to Get Your Life Insurance on Track

Side effects.

It happens to all of us. This is true, whether you are trying to accomplish tasks at work or at home. I’d venture to say that we’ve all come to the end of the day and wondered, “What happened? I didn’t accomplish anything on my list.”

Unfortunately, this can affect your family finances, as well as your productivity at work or at home.

Life insurance is a good example. Discussions and plans related to this sensitive topic are easily interrupted due to the complexity or discomfort surrounding the topic. With that in mind, here’s a simple, four-step way to get your family life insurance covered.

1. Determine the right amount of coverage

Begin with the end in mind. Basically. Knowing what you may need, based on your unique situation, if something has happened to you or something important is very important in creating family decisions regarding life insurance. Yes, there may be serious financial problems for your family if either of you went. Things like paying off debt, paying back the last balance, raising kids and then sending them off to college, paying back lost money, and giving you or your partner time to recover if something happens to the other person can come with a significant cost. .

There are online calculators that help you determine what you need. VA has one. There is an easy-to-use calculator lifehappens.org. And, of course, an insurance agent can help you find a solution.

2. Consider what you have.

Once you know what you need, it’s time to adapt to what you have. First, for those in uniform, you probably have $400,000 of Servicemembers’ Group Life Insurance (SGLI), life insurance for the military. Married couples can have Family SGLI up to $100,000. Employers outside the military also provide group support. Whether you’re in or out of the military, you can see how a career change can affect your life insurance. This is one reason why it may make sense to diversify your life insurance sources.

And that’s where things can get really complicated. You need to choose the type of coverage. What is the right insurance? In general, there are two broad types of coverage, time or fixed.

Temporary needs – those that go away, such as mortgages and childcare – are covered by long-term insurance. For example, if you have several children, between the ages of 3 and 5, you can buy a 20-year policy (this type has a higher payout and death benefit in all 20 years) that will cover you when the children are out on their own – knock on wood.

On the other hand, for a policy that you want to have “forever,” a permanent policy may make sense. For example, there may be more money that you want your spouse to have when you go or life insurance that is part of a more complex or special needs plan.

Now that you’ve determined what you want and analyzed what you have, it’s time to…

3. Fill in the blanks

If you’ve downloaded the numbers and there are no gaps – in quantity or source – your work is done for now. On the other hand, if you need additional support, it’s time to buy.

A few things to keep in mind when doing this: First, high demand does not mean high payouts. Life insurance can be surprisingly affordable. Second, as I said before, match the type of support you buy with the reason for the coverage. Finally, it is becoming easier and easier to buy life insurance. Digital apps, automated records, and technology and data are making it easier and faster to get life insurance. Don’t let fear get in the way.

4. Rinse, rinse and repeat

Being able to set and forget a method or method is great. Unfortunately, life insurance is not suitable for this approach. A new baby, a new home, a divorce or a job change are all examples of common events that can change your life insurance policy. Keep this in mind and, when something like this happens, make sure you renew your life insurance with these simple steps.

Find Your Family Needs

FSGLI, TSGLI, VGLI, SGLI…a long list of acronyms and abbreviations may not be enough to meet your family’s needs. Explore life insurance options with our free tool, which compares prices and matches your needs.

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