Everyone should determine how much life insurance and disability insurance they really need. But, before that question is answered, consider these points:
First, until you are about 60 years old, your chances of becoming disabled and unable to work are much greater than the chance of dying. Your ability to earn income is probably your most important asset, so don't be concerned with only life insurance protection.
Second, many employers provide life and disability insurance at no cost to the employees. Be sure that you elect to participate in this "free" coverage before you buy any added coverage. Many employer paid plan are not "portable," meaning your coverage ends if your employment is terminated. Also, plans that are portable may require much higher premiums than were being paid by your employer
Third, many employers also offer Voluntary Group Disability and Voluntary Group Life insurance, and these Voluntary Benefits are often a "Best Buy" deal. That's because employers can obtain group discounts that have lower premium rates than most individuals can obtain. Don't buy Individual Life or Disability coverages unless the premiums or coverages are better than your Voluntary Group options.
Now that you have considered these three points, you are ready to proceed.
Some financial advisors say you need 5 to 7 times your annual pay in Life Insurance and 70% to 80% of your monthly pay in Disability Insurance.
However, for a more precise determination of your needs, here are four great independent web resources that can help you consider most of the unique variables to calculate your needs and guide you in selecting the best policy:
Authorized independent agent and licensed in GA 595707 and 153782, AL A221211, AR 394983,
AZ 1028006, CA 0I04295, FL P009487, IA 7081467, MO 8055643, MS 405036, NC 7081467,
NJ 1526012, NY LB-1177472, SC 380702, TN 930031, TX 1569264, and VA 614046. Coverages and availability vary by state. Not all businesses and individuals qualify. This does not constitute legal, tax, or accounting advice or opinion. Consult with an experienced and properly licensed professional regarding the specific suitability of any planning technique or benefit plan design.
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