Life Insurance Quote - How Much To Spend & How Much To Get
So, you have your insurance plan and all the numbers are in order. You pay an amount monthly to cover expenses and are pretty content with your situation. Then you get a new job offer that'll be making you more money than your current one. As a result, now knows what is the best minimum life insurance plan for them as they're leaving their current job. The question is how much should they spend on their future life insurance plan?
To find out what is the best way to spend, and how much should they get for this hypothetical future policy, let's take a look at some life insurance quotes from different reputable companies so we can get an idea of what will be recommended to them.
The first website that I consulted was lifequote.com . I showed this to a few people that I know and they've said that it's pretty good and reasonable. So, let's see what kind of deals we can get from them.
Now, to determine how much life insurance you need, you will have to keep several factors in mind: Your monthly expenses before taxes is the minimum amount of money needed for your family to live comfortably even when you are not there to provide for them anymore. (Remember, we're talking about a hypothetical situation here.) The next thing would be your savings and able assets.
The next thing is how much you would like your family to receive in case of your death.
Lastly, it will depend on the kind of life insurance plan that you want and how much have you been advised by your financial advisor.
This screenshot explains all these factors and also shows how much would be recommended, along with the costs of various plans from different insurers:
As you can see in this screenshot above, we are shown different plans and how much a woman would generally be advised to spend for her future policy. But, in some cases, it can be done with a little less spending and in others you may need to spend more for a better plan that may give your family more money.
This is just an example of what we can expect to get from life insurance quotes from a popular site. But, what's important to you is that between your budget and how much money you would like your family to receive in case of death, there should be an amount of spending that would be perfect for your current situation.
For example, if you're currently getting $400 a month for your life insurance plan and you really want to have 2 million dollars in your account at death, then you'd need to spend around $800 per month.
If we assume that our working woman will be working for the same firm and will not be changing jobs in the near future, then this is how much she should cover her expense:
$1,000 per month for monthly expenses (this covers all basic necessities such as rent, food, electricity, medical bills etc. so her family can be comfortable even when she is not there.) $1,600 for her savings $300 for life insurance
So, the minimum amount for this woman's life insurance should be: $2,000 per month. This is based on a hypothetical situation and the insurer will always assign a number after examining and evaluating your current financial situation.
This $2,000 will be divided into 3 plans of 1 million each (actually, it's 500 thousand dollars each). The policies will be assigned to 3 different insurers using a combination plan (see below). These policies cost about $130 per month.
If she decides to cancel her old policy and get a new one from the same company, she will most likely not be getting the $70 monthly discounts that she is currently getting (this is for the policy that costs $3,200 per month). Instead, she will be paying about $100 per month more. So the extra money in her plan will have to make up for this difference.
Also, by adding each other's name on her husband's policy makes her whole family vulnerable to a potential claim. So if anything happens to him and they decide to file a claim then the insurance may pay out more than required (if you're not aware of how over-insurance works, this article can provide additional information.
But, this is just an example. If the woman wishes to have more money in her policy, then she can simply spend more (up to $5,000 a month for the combined policy).
A combination plan is an insurance plan that combines 3 life insurance plans together to form a larger and more secure coverage. To put it simply, if you have 3 policies in place each for 1 million dollars, then if one of your insurer goes under or refuses to pay the amount that you are claiming for (a very rare case), you still have other 2 policies in place that will remain unaffected. But also keep in mind that your monthly premium will double because of this. This type of policy is a safe investment for families with small children.
Conclusion
If you're thinking of making a change in your current life insurance plan, then you should check your policy and the kind of rates that your insurer is offering. You may be able to improve and save on some of the policies that you have or add additional protection for yourself and your family.
We hope this article is helpful in determining how much life insurance quote to get. If you'd like a more personalized reading, then feel free to check out our website at www.lifequotesdirect.com . We're here 24/7 for all kinds of questions you may have about this subject matter.
Feel free to leave your questions, suggestions, and recommendations in the comments section below and we'll get back to you as soon as possible.
As always, thank you for reading!
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Conclusion
If you're thinking of making a change in your current life insurance plan, then you should check your policy and the kind of rates that your insurer is offering. You may be able to improve and save on some of the policies that you have or add additional protection for yourself and your family.
We hope this article is helpful in determining how much life insurance quote to get. If you'd like a more personalized reading, then feel free to check out our website at www.lifequotesdirect.com . We're here 24/7 for all kinds of questions you may have about this subject matter.