Life insurance for diabetics. Life Insurance for your Family s Needs, Prudential Financial

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Getting a life insurance policy is one of those things that, like exercise, you know is important and very beneficial, but it can be hard to find the time to do it. Meetings, family obligations, and an overflowing email inbox can leave the seemingly mundane task of applying for life insurance a permanent fixture on your to-do list.

And let’s face it, no one wants to talk about preparing for their own death. Though it can be a depressing and somewhat uncomfortable subject matter, it shouldn’t deter you from taking the simple steps to ensure the future financial security of you and your loved ones. Below are some simple guidelines to get your started.

Who needs it?

Do you need life insurance? The short answer is, probably. If there is anyone in your family that you are financially responsible for (or want to make sure is secure upon your passing), then you’ll want to consider life insurance. Deep down, it seems we already know this opens in a new window, as 85% of Americans know they need it while only 44% of us actually have it. So, where do you start?

Which type to buy?

We all understand homeowner’s insurance: in the event of a loss, the insurance company pays a set value to offset your financial loss. Life insurance works similarly, and although putting a price tag on our lives is uncomfortable, it can be helpful to think of it as simply another form of protection.

There are two main types of life insurance, and the one that’s right for you comes down to how you want to protect those who rely on you financially.

Selling life insurance policy

Term: With term insurance you pay a premium for a set term; if you die within the term, your beneficiary receives your policy amount tax-free. Term insurance can be less expensive than Permanent but keep in mind that after the period of coverage ends you will have to get a new policy and at that point premiums may be more costly.

Permanent: This kind of insurance is generally more expensive, because you are provided coverage for the rest of your life. Permanent insurance includes a death benefit and builds a cash value through the years that you can tap into before you die. Many people use Permanent insurance as another form of retirement savings.

How much?

A common rule of thumb is to purchase 20 times your salary. For example, if you make $40,000/year, you should consider purchasing $800,000 in insurance.

Another important thing to consider would be your existing assets, like savings and your 401(k) (if you’re close to retirement age). In theory the more liquid assets you have, the less life insurance you may need, since upon your death your family (or other beneficiaries) would inherit whatever money you have saved.

But for a more detailed approach that’s unique to your situation, use this calculator to determine your life insurance needs.

Long term care insurance

When to buy?

It’s never too early to start. In fact, the younger you are the more cost effective monthly payments will be since the assumption is that you’ll be healthier (and be expected to live longer) in your 20’s and 30’s than in your 50’s and 60’s.

For example, a healthy man who wants to secure a 20-year term policy with a $500k death benefit might expect to pay:

For most people, milestone events also present new reasons to revisit life insurance needs, whether getting married, having a baby, or starting a new career. But whatever the reason, the younger the better as far buying life insurance.

Bottom Line

Life is hard, but obtaining life insurance doesn’t have to be. And putting aside a little time and money to research your options and buy a policy will feel like a cinch in comparison to the peace of mind you’ll have from checking such an important thing off the to-do list.

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