4 questions to ask yourself before shopping for life insurance

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Do I need life insurance?

Your family is growing, which means more people who are financially dependent on you. Life insurance is a powerful financial tool for protecting the wellbeing of your loved ones. It’s something every new parent should consider.

Even if you already have life insurance, you might want more coverage, or even a second policy at a different term length.

It’s possible that you have a policy through your employer. It might still be worth considering an individual policy to cover any gap in your coverage amount, or as a precaution in the event you change jobs.

How long do I need to be covered?

There are two primary forms of life insurance: term life and whole life. Term life insurance typically covers a period of 20 or 30 years, whereas whole life insurance can provide lifelong coverage.

For most people, term life coverage is all that’s necessary. You’ll want to consider a policy that will ensure your family will have the means to pay for a mortgage, cover the cost of childcare and college, and any other major expenses your family may have before everyone is independently financially secure.

How much insurance can I afford?

This is a great question to consider early. To answer it, you’ll need to do some budgeting.

While you probably aren’t throwing a fiscal responsibility party, getting a sense of how much money you have left over at the end of every month will allow you to know what you can spend on things like life insurance.

Term life insurance starts at as little as $14 a month for $250,000 in coverage when you shop through our partners at AIG Direct. Knowing what you can afford will help you figure out the best policy for your family.

Should I think about multiple policies?

One reason to have multiple policies is to have different coverage amounts based on term length. For instance, a twenty year policy will likely have a higher coverage amount than a thirty, because in that ten years it’s likely that your family will have secured more wealth and financial stability.

Another reason is to have a policy for yourself and a partner. If you both contribute to your household income, you’ll want to have enough coverage to make up the difference if one of you were to pass. In the case of one partner being the primary breadwinner, you’ll need to consider what costs the other partner is covering in their parenting, like fulltime childcare, when making the decision to have multiple policies.

Okay, time for a quote

With a bit of reflection and some budget work you should have an idea of whether you need life insurance, how many individuals you need to cover, the time you’ll need covered, and what you can afford. With that information, you’re ready to make an informed decision with an insurance agent.

Consider starting with our partners at AIG Direct. They’ve helped millions of families find the coverage they need. Getting a personalized life insurance quote from AIG Direct is quick, it’s free, and there’s no obligation. You can start online by tapping the button below.

Once you have a quote, your agent will work to find the right policy to meet your needs while answering any questions you may have.

Get your quote from AIG Direct

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