How to Choose a Life Insurance Policy

Before you choose a life insurance policy in Monroe, CT, you will need to determine if you need life insurance. This can help you decide what type of policy is needed. If your salary is important to supporting your dependents then you should consider life insurance.

How Much Insurance Do You Need?

The amount of life insurance you need will depend on your personal situation and different factors, including how many dependents you have, your debts, income, and lifestyle. As a very general guideline, you should find a policy that is worth between five and 10 times your annual salary. You may also want to speak with an agent at Fida Insurance Group to determine how much you need.

Types of Policies

There are several policies that you can consider. Whole life insurance will offer both cash value and a death benefit. Premiums stay the same until you pay off the policy and the policy will stay in effect until your death if you have paid off the premiums. This type of insurance can be more expensive than other options. Variable life policies will also build up a cash reserve and you can invest this in different options. The value of the cash reserve will depend on how the investments are performing. With universal life insurance, you can vary the amount of your premium and death benefit. Choose permanent life insurance if you want to accumulate savings and want life insurance to last as long as you live.

For those who may only want life insurance while they have dependents to take care of, consider term insurance. This insurance type will be in effect for a certain number of years. There is a death benefit available but no cash value. Term life insurance can also help you if you need a large amount of insurance but have a smaller budget.

Contact Fida Insurance Group, serving Monroe, CT, to get a quote on life insurance.