The pandemic has caused several new challenges for parents. This explains why many families in 2020 invested in stocks for financial preparedness.
In fact, more than 17 percent of parents bought life insurance coverage for their spouse and families, according to a recent survey by Policy genius. The primary reason is that life insurance can guarantee that beneficiaries such as spouses, parents, and most importantly, children will remain financially secure in the event that something happens to you.
If you’re worried about the cost, know that it’s affordable and provides much-needed financial security to your family. Continue reading to find out why purchasing life insurance is worth it and how you can get an affordable policy.
Life Insurance Coverage
Surprisingly, the average monthly premium of a life insurance policy is no more than $29 for a 35-year-old man. That means a 20-year policy can give a $500,000 payout. This average is even lower for women.
How to Calculate Life Insurance
As mentioned above, you can’t deny the importance of a life insurance policy if you’re a parent and your children depend on your income. Keep in mind that it has a low impact on the budget but offers you long-term security. The overall cost of a monthly insurance premium depends on certain factors, that include;
- The age of the policyholder
- The health condition of the policyholder
- The total coverage amount
- The term or length of the policy
You can save a significant amount on life insurance by securing a life insurance policy if you buy it at the age of 30 or 40 in good health. When you invest in this type of insurance policy, the monthly premiums remain the same throughout the policy term period.
Strategies to Get the Best Rate on Life Insurance
If you’re a parent looking for the best rates on your life insurance policy, comparing quotes from different insurers is the first thing to do. This way, you can save more than 40 percent on your insurance premium. You need to provide some basic information in order to get the most accurate quotes;
The insurer wants your income details and if you have any debts in your name.
This includes all current and past medical prescriptions, along with your family’s health history. The insurance company may also contact your primary care physician.
Choosing a beneficiary is up to you. You may select one beneficiary and can choose more than one. However, it’s important to give your beneficiary a copy of your life insurance policy. You can go through or compare the online marketplace to get multiple quotes.
The pandemic has raised many concerns for parents as they have become more worried about the future of their children. Thus, purchasing a life insurance policy is one way to get financial security in the long run.