It is safe to say everyone needs life insurance. While you can’t take it with you, you can leave financial obligation behind. Life insurance offers the best method of protecting your loved ones if you are gone.
The good news is that life insurance rates are low and there are many different kinds of products from which to select. One question we often get is, “How much life insurance do I need?” The answer to that depends on your individual situation, but a good place to start is a life insurance limit of at least ten times your annual gross income.
A 2016 Insurance Barometer Study by nonprofit Life Happens and the insurance industry research group LIMRA found that more than 80 percent of Americans overestimate the cost of life insurance. For example, when asked what they thought a $250,000 term life insurance policy would cost for a healthy 30-year-old, individuals under the age of 25 guessed $1,000 – almost 10 times the actual cost of only $150 a year!
Term Life is Very Affordable
Term Life insurance provides protection for a specific, limited amount of time, usually in five-year segments, such as for 10, 15, 20, 25, or 30 years. Typically, you pay annually and the premium is locked for that period. Because term life insurance is temporary, and because it does not accumulate cash value, it generally costs a lot less than permanent coverage.
Partners Risk Services can help you make sound, informed decisions about issues affecting your life, health and insurance needs. Our philosophy is to fully understand your objectives and then translate them into solutions that provide assurance and peace-of-mind.