As September comes to an end, so too does Life Insurance Awareness Month.
While many see value in life insurance, less than half of adults ages 25 to 64 have individual life insurance policies, according to LIMRA.
“Usually, life insurance is not that expensive at younger ages, and I believe that more people in their 20s should look seriously at it to protect their loved ones,” says Dave Keil, an insurance agent at Dupaco Insurance Services in Dyersville, Iowa.
Here are three things you should be aware of when it comes to this important coverage:
- Whole life vs. term insurance: Different policies are designed to meet different needs. Whole life insurance remains in force for the insurer’s entire life, while term insurance is in effect for a specific period of time and, as a result, is less expensive. Keil recommends that most people carry some whole life insurance – at least enough to cover burial expenses – and enough term insurance that would replace their income from now until age 65.
- The right amount: Many times, people don’t know how much coverage they need. But when insurance agents run a computer program to deliver the perfect number, it’s often such an outrageous figure that people walk away, Keil says. Today’s rule of thumb: Start by considering a policy that’s 10 times your annual income. “I’m not sure it’s perfect, but it’s a place to start,” Keil says.
- Group life insurance: Many employees have group life insurance through their employer. The downside? Sometimes, employees wrongly assume they don’t need additional life insurance, Keil says. “As soon as they no longer work at that employer, that coverage is gone,” he says. “A lot of people don’t think about that possibility.”
Request a no-cost, no-obligation insurance analysis and quote online, or contact the Dupaco Insurance Services team at (563) 557-7600 / 800-373-7600, ext. 210, or by e-mail at firstname.lastname@example.org.
By Emily Kittle