What you should consider when buying a policy
Before you can buy a life insurance policy, you have to take stock of your finances and figure out what sort of coverage you need. There are many factors to consider, but here are a few that should influence your decision: Age: The older you are when you buy a policy, usually the more affordable it will be. However, as with many things in life, getting older often means paying more for insurance. Are there members of your family who rely on your income?
How much coverage do you need?
Calculate your insurance needs by first calculating your replacement income. This is how much you need to live off of for one year and includes expenses like food, mortgage payments, transportation costs and utility bills. Your retirement account is separate from your replacement income; you’ll draw from it to pay for daily living expenses after retirement, but do not include it in your replacement income calculation.