8 BEST Dave Ramsey Life Insurance Advice – 2022
8 BEST Dave Ramsey Life Insurance Advice – 2022
What is Term Life Insurance?
Term Life Insurance pays a death benefit to your beneficiary if you die within the policy’s term.
It doesn’t have cash value while you’re alive.
Is Term Life Insurance cheap?
Term life insurance is often sold at a lower price compared to permanent life insurance products.
Why do you need Life Insurance?
The purpose of life insurance is to take care of your family if something unexpected happens to you.
How Much Life Insurance do you need?
You don’t want to go nuts and buy too much unnecessarily, but you should have enough to ensure that they’re well taken care of if you’re not around.
FACTORS TO CONSIDER WHEN DETERMINING THE AMOUNT OF LIFE INSURANCE NEEDED
- Parents or in-laws willing (and able) to help financially in the event of your death.
- Amount of debt.
- Ability (and desire) of spouse to work and earn an income in the event of your death. You or your spouse might want to cut back on hours (and income) if one of you dies when your kids are young.
- Do you want to ensure college education is funded by life insurance in the event of your death?
- Volatility or stability of projected income.
- How much coverage you “want” to have.
There are other criteria to consider, so it’s important to evaluate your situation and speak with an advisor who can help you determine the appropriate amount. Again, Dave’s advice to buy 10 to 12 times your income, may or may not be suitable for you.
What are the terms of Term Life Insurance?
Term Insurance: The most common term periods are 15, 20, and 30 years.
Standard level term life insurance is relatively inexpensive.
Actuaries know that most people will outlive their policies, so the premiums are low.
After deciding on face amount, then selecting the proper term duration is the next step.
Term vs. Whole Life
What kind of life insurance is best for you?
Whole life is in effect as long as you continue paying the premiums, while term life lasts for a set number of years then expires.
Whole life is much more expensive than term life.
You can spend between six and ten times as much for a whole life policy than you will for a term life policy with the same amount of coverage.
For this reason, most people buy a term life policy that expires at a certain age.
8 BEST Dave Ramsey Life Insurance Advice – 2022
Everyone who is not self-insured should have life insurance – especially if you’ve got a spouse and kids who depend on you.
If something unexpected happens your family is going to need stuff, and they’re going to need money to pay for that stuff.
Term Life Insurance costs less and generally covers policyholders for a twenty-year term, which is long enough to get the kids grown and out of the house and to make a financial plan.
You should have 10 to 12 times their yearly income in life insurance.
But if you have a solid reason to project that your income will jump significantly in the near future, there’s nothing wrong with basing the amount of life insurance coverage on that figure — as long as you can afford it.
There’s nothing wrong with going ahead and getting more coverage.
Most people, if they work outside the home and are married —especially if they have kids —have 10 to 12 times their annual income in a good, level term life insurance policy.
You only need life insurance to take care of things you leave behind when you die.
When it comes to this kind of coverage, just think about anyone who might be left in a bad financial situation if you died. Your family could never replace you, but in most cases, they would need to replace your income.
One important factor you should be aware now about Term Life Insurance
No one is happy with an investment that results in zero gains. The No. 1 reason that consumers who seem very likely to live beyond the term of their standard life insurance policies should look into conversion options is, if they don’t, they risk losing their premiums once that policy has expired.
Term Life Conversion is a rider in which an insured can convert a percentage or all of the death benefit to a guaranteed permanent policy without proof of insurability. Converting term life to whole life or universal life can be a smart move for many.
The term policies that include a conversion option have a timeframe in which you are allowed to convert.
For some policies, you may be able to convert right up until the day the term is about to expire.
For others, you may only have a few years in which you need to decide if you want to convert.
This timeframe is not a secret. Before you buy a term policy, simply ask about the term conversion expiration period.
Term Life Insurance Quote Online
If you’re unsure about how much term coverage is right for you and your family, contact Mintco Financial.
We’re here to help you choose the right life insurance for your family.
You need a policy you can live with, and that will fully protect your family from financial harm if you are no longer with them.
Get a free Instant Term Life Insurance Quote HERE:
