Life Insurance for $250k: Is it Enough?

Life Insurance for $250kWhen buying life insurance there comes a couple of questions followed by the decision like what type of life insurance do you want, what coverage or face amount do you need, and what are your beneficiaries? You may have figured out that you want to buy life insurance but aren’t quite sure of the coverage amount but don’t worry that’s why we are here! You may have also heard of life a life insurance amount of $250k and that isn’t a bad place to start and if this is the coverage amount you want then perfect you are already a step ahead but if you are not sure then you will know by the end of this article. In this article, term life vs permanent life, we will be discussing whether or not $250k is enough, how to know if it’s enough, and we will end this article with our words to the stay at home spouse! The following are some key points from this article;

  1. Congratulations, you have taken the first big step toward getting a new policy. Now you just need to figure out which type of life insurance will fit you the best! There are two major life insurance types and they are term life and permanent life.
  2. When trying to determine if $250,000 is enough coverage just think of all the debt you have including your mortgage and also consider if your spouse needs your income replacement. $250k is actually the most popular amount that clients choose.
  3. Determining your coverage amount: multiply your income by 10, plus $100, 000 per child for college expenses, you need to add up your mortgage, with the student loans you may have, or business loans, what you owe to your car dealership for that new BMW, and of course you need to add up your final expenses, or your funeral costs, add your annual salary times the number of years you want to replace income, then you subtract your liquid assets such as your savings and existing college funds and current life insurance if you already have one.
  4. Both parents or both spouses should be insured because the value provided by the stay at home parent or stay at home spouse (you)  need to be replaced if you were to pass away.

Is $250k enough coverage?

Whether $250,000 is enough or not we cannot tell you because that depends on your personal needs. We are not aware of your specific needs and debts. Of course, if you are really not sure in the end of this article you can always give us a call and we can figure it out together. When trying to determine if $250,000 is enough coverage just think of all the debt you have including your mortgage and also consider if your spouse needs your income replacement. $250k is actually the most popular amount that clients choose. It’s a quarter million and if people aren’t aware of exact numbers but know it isn’t worth having coverage of half a million they usually stick to this amount. We have provided a table of example quotes from top rated companies just look into the $250k column and you can see for yourself what some quotes will look like.

Application Process

Whether you decide to go with $250, 000 or more of life insurance the application process is going to be the same. So let’s look at some steps involved with what it takes to secure a policy:

* There is a way to get $250,000 with a lot of companies without having to do an exam and being able to apply online. Click here to check out companies that specialize in that. 

  1. Once you pick a company of your choice, you and your agent complete an application together. The key here is to be straightforward and make sure your application is in a good order.
  2. The next step is to have a nurse come out to your home to complete your para medical exam. In this exam, they will check your height/weight, measure blood pressure and get your blood/urine sample.
  3. When the application and exam are sent to the carrier they will conduct a thorough qualification process to see your overall risk profile. This helps them determine the rate you qualify for and the next step is issuing your policy.
  4. Once approved you’ll get your policy in the mail and simply have to sign some final requirements. Afterwards, you are covered!

Work with us!

As soon as you decide on getting a new policy or upgrading your current one we always recommend that you shop around. If you think about it for a second, you will realize that when you buy a new car you don’t go off your first offer, you look around some more go to different car dealerships then you come together and think of which car dealership gave you the best deal then you go with them. Think of life insurance the same way, these companies will offer you different rates and that’s why you should always shop around because you will get different quotes.

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About Mack Dudayev

Mack is owner and life insurance expert at InsureChance. On a mission to create a way everyone can understand, afford and attain the right life insurance coverage to protect their financial responsibilities.

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