Choosing the right life insurance plan for you might be difficult. Many people know that they need life insurance, but they are unclear about how much to buy and how the life insurance company will determine the price. If this is your first time buying life insurance, here are some things that you need to know.
How Will They Calculate The Price Of My Life Insurance?
The price of your premium each month will depend on generally three factors: how much life insurance you buy, your lifestyle and your health. This means that the younger and healthier you are, the less you will pay in your life insurance each month.
The insurance agent will have you take some medical tests, including blood tests. These tests will tell you how healthy you are. For instance, it will measure your cholesterol, if you are diabetic, blood pressure, and so forth. It will then be determined how likely you are to pass away. If your health is good then you will pay less in your premium each month. If your health is poor, then you will pay more. This is why it is best to try and get your life insurance policy when you are young and when you are healthy.
Another factor that will go into your life insurance is your lifestyle. For example, if you work in a high-risk profession for a living, you can expect to pay more than the person who works in an office. You also will be asked if you own a motorcycle, if you drink heavily, and other factors to determine if your lifestyle choices put you at a greater risk for premature death.
How Much Life Insurance Should I Get? This is one of the hardest questions to answer, since each person will need a different amount. First you should look at all of your debts, including your home. When you pass away, you still may have debts outstanding that your family will need to cover. Thus, the amount of debt you have should be included in the policy.
Second, you should think about how much money your family will need to live off of if you are not there anymore. If you are the breadwinner you should calculate how much your family needs to live off of annually and the multiply that by how many years you would expect them needing help.
Lastly, you should include funeral expenses, and perhaps medical expenses. This will help your family so they don't have to worry about the cost of giving you care and funeral toward the end of your life.
These are just some things that will go into choosing your life insurance policy. For more information, visit http://www.collinginsurance.com/.