What Insurance Shoppers Should Know About Selecting the Right Life Insurance Policy

If you’re currently exploring different policy options and researching life insurance, you may feel a little uncertain about choosing the right life insurance for you and your loved ones. Although there are many important factors to consider before settling on your life insurance policy, a few key rules of thumb can help you narrow your options down. Here are some steps to work through when browsing life insurance.

Decide on Whether You Would Prefer Whole or Term Insurance

The first decision you’ll likely have to make when shopping for life insurance is choosing your term of coverage. The most common options available are:

  • Term insurance, which provides coverage for a set number of years
  • Whole life insurance, which provides coverage until your passing
  • A term policy that provides the option to extend to a whole-life policy later on

Calculate How Much You Could Afford To Allocate to Insurance Expenses

Knowing how much you can afford to spend on insurance may affect the amount of death payout you can secure. Be sure to purchase enough coverage so that your payout could cover:

  • Outstanding debt
  • Your dependents’ everyday expenses
  • Final expenses and associated burial costs

Whether you’ve purchased life insurance in the past or not, choosing the right life insurance can sometimes feel stressful and complex. Thankfully, you can take the stress out of the process by following these two essential rules of thumb along the way.