Most people don’t think about life insurance until they have to. That usually means when they get married, buy a home or have a child.
A story in the New York Times says most people are surprised by the amounts they need or think that if they get it at work that is enough.
But that’s usually not the case, the story says.
What kind of life insurance do you need?
Most folks are best served with a plain insurance policy. They pay a set amount if tye owner dies within the boundaries of the term, usually 10 to 30 years.
This type of term insurance is cheap compared to other forms. A healthy 30-year-old woman might pay $38 a month for a $1 million policy. Men pay a little more.
Some insurance agents will push whole life or universal life insurance. They bring the seller higher commissions. These cost much more. Those who should consider them include those with special needs children or wealthy families who face estate taces.
How much to buy?
Usually, the recommended amount is 10 times your salary.
The article says to shop around as prices can vary.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
