Now is the right time to protect your family against the devastating loss of a loved one with Term Life Insurance.
Let’s face it, nobody wants to talk about the loss of a loved one. Death is one of the most difficult subjects to talk about and even harder to plan for. With that in mind…Death will happen, and you need to have a plan in place to financially protect your loved ones. That is why you need the protection of a Term Life Insurance Policy.
Term Life Insurance is the most affordable form of life insurance with the highest death benefit. For an example, a 40-year-old male in good health can get a $100,000, 30-year term policy for only $17.45 per month. That is less than $1 per day!
How does a Term Insurance Policy Work?
Term Life Insurance is a policy that never increases in rate during the policy period (term) and guarantees a payout equivalent to the amount you insured. Going back to the example above, a 30-year term means you pay the $17.45 per month for 30 years, if something happens to the insured during that term (Death) the beneficiary gets $100,000 from the insurance company. That money can be used for anything the beneficiary wants, such as burial costs, paying off the mortgage, or a college education for a child.
At the end of the term period the policy simply expires, and you don’t pay anymore monthly premiums.
How much Life Insurance do I need?
There are a lot of different schools of thought on how to determine how much coverage you need, but the one I have been using for the past 20 years is The DIME Formula. Dime stands for Debt, Income, Mortgage and Education. These are the key four areas you need to focus on when determining the death benefit.
Debt and Final Expenses – Sum up all your debt, minus your mortgage, and add $10,000 for funeral expenses (this amount may be higher depending on your individual needs)
Income – A good rule of thumb is taking your annual income and multiplying it by 10.
Mortgage – Calculate how much is left on your mortgage.
Education – Estimate the cost for each child would need for a college education.
I find this simple formula will provide enough of a death benefit to meet your family’s financial protection.
If you don’t have any life insurance and just want a life insurance policy based on what you can afford, this is an option we can explore. We can take the amount of premiums you could afford each month and calculate how much death benefit that would provide.
Working with an experienced Life Insurance agent is the best way to protect your family’s financial future. Barbee Jackson Insurance has agents standing by to help you meet your goals. All advice, and quotes are free of charge, we just want to be here to help you with one of the most important decisions you will make for your family. You can reach an agent by calling (850) 389-2001.
This blog was written by Craig Barbee, CEO of Barbee Jackson Insurance. Craig is a licensed Life, Annuity, and General Lines agent that has been providing insurance advice to the Crestview community for the past 20 years. You can reach him by phone at (850) 389-2001 or by email at email@example.com