What To Consider When Buying Life Insurance – There is no universal life insurance policy. Depending on factors from income to debt and family size, you may need as much — or less — life insurance than your neighbor. Before you buy a policy – ​​or buy additional life cover – it’s important to understand the factors that will affect the amount of life insurance you need.

You may be wondering if you need life insurance. It is a common misconception that only those whose families depend on their income need life insurance. In fact, anyone can benefit from life insurance. In addition to normal uses such as protecting your income, life insurance can be used to cover funeral expenses, pay off outstanding debts, and even support a charity of your choice.

What To Consider When Buying Life Insurance

What To Consider When Buying Life Insurance

According to one survey, among Americans who have life insurance, one in five feel they need more insurance. How do you determine how much life insurance you need? Here are six things to consider.

Life Insurance: What It Is, How It Works, And How To Buy A Policy

Your tax return amount plays an important role in calculating life insurance. Generally, the more you earn, the more coverage you need. Your Farm Bureau agent can help you determine how much life insurance you need.

The proceeds of a life insurance policy are needed to pay off all your debts, including mortgages, car loans, student loans, credit card balances or other debts that will burden your family and must be paid in full. More debt requires more life insurance.

A review of your current assets will help you determine how much life insurance you need. If you have substantial savings and investments that can be used to cover funeral/estate expenses, pay off debts and provide financial support for your family, you will need less life insurance than if you have fewer assets.

Do you have life insurance through your employer? Depending on this level of coverage, it may be a good idea to have your own personal policy.

Myths About Buying Life Insurance

The more dependents you have, the more life insurance you need. In addition to thinking about the number of children you need to protect, consider their ages. You need more life insurance coverage for young children into adulthood than you do for college graduates themselves.

Life insurance helps protect your family, which means buying enough coverage for their future needs, including educational expenses. Life insurance has unexpected uses that you can find, including paying for your children’s education. When calculating how much life insurance you need, consider how much it will cost to send your child to college.

Not sure how much life insurance you need? Our online calculator is a good place to start. Then make an appointment with your Farm Bureau agent for a detailed analysis of your life insurance needs. In 2017, over 174 million Americans bought gifts between Black Friday and Cyber ​​Monday. This year, consumers spent $643 million in cyber spending on the Friday after Thanksgiving, up nearly 28% from last year. Millions more will be spent by the end of the year.

What To Consider When Buying Life Insurance

Shopping has become synonymous with the holidays for consumers of all ages. From long-time shoppers loyal to their favorite brands to young people conducting extensive online searches, seasonal shopping habits can also reflect how consumers shop for life insurance.

How Whole Life Insurance Works

Let’s look at the purchasing trends of 3 very different but important generations of consumers: Millennials, Generation X and Baby Boomers.

Millennials are between the ages of 18 and 36 and make up the largest generation in our history at approximately 92 million. According to the Insurance Barometer survey by Limra and Life Happens, 51 percent of this age group does not have life insurance.

Generation X – 37-52 years old. These people are often called the “sandwich generation” because many of them are responsible for their children as well as their aging parents. For this generation, the financial priority of living expenses and building a savings account takes precedence over buying life insurance.

Baby Boomers are 53-64 years old. They control nearly half of the US population and 70 percent of the nation’s disposable income. Although they are fast adopters of technology and the fastest growing population on the Internet according to ImmersionActive.com, they still prefer face-to-face meetings for their financial planning.

Benefits Of Buying Life Insurance Online

Knowing the buying habits of these consumer groups can help us all tailor our offers and messages to their unique purchasing preferences. With 83 percent of all age groups citing “ease of understanding” as the most important factor when purchasing life insurance, we should all take advantage of this advice when communicating with consumers.

Millennials: This group wants and needs more information about life insurance benefits. Contact them and tell them about the benefits and coverage availability.

2018 Update: This group continues to educate themselves, with 54% likely to reach out to people on social media for recommendations.3


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