Life insurance is a complex policy, and choosing the right coverage can be a challenge, especially if you don’t know the type of policy that’s best for you or how much life insurance coverage you need.This guide covers the things you should consider so that you can choose the best life insurance coverage that fits your needs.Decide What Type of Life Insurance Policy Is Best For You There are two main types of life insurance coverage to choose from, including: Term life insurance: Term life insurance is great for you if you only need coverage for a certain period, and is best for covering you through your working years.

It comes with low premiums, but the death benefit only pays out if you die within the covered term.Permanent life insurance: Permanent life policy is best for individuals who require coverage for life, like parents with special needs dependents.It also offers a cash value component, hence great for individuals who want to use their insurance policy as an investment vehicle.

Though permanent life insurance has high premiums, it guarantees that the death benefit will pay out indefinitely.Determine How Much Coverage You Need A good rule of thumb when determining how much life coverage you require is to multiply your current annual income by ten years, or the number of years you think your dependents will need coverage.Then add your children’s college expenses.

You should also include the costs of any services you provide to your loved ones that may need to be replaced if you pass on.Figure Out How Long You Need Coverage Do you need coverage for a certain period or for life? Experts advise that you should maintain life insurance coverage until: But if you have dependents with special needs that will always need someone to take care of them, you should consider holding a permanent life insurance policy.Budget For Policy Premiums Permanent life insurance is usually 6 to 10x more expensive than term life for the same amount of death benefit.

So, you need to determine how much life insurance you can afford and budget for monthly or annual premiums.Failure to pay your policy premiums on time may cause your policy to lapse, forcing you to start fresh or face penalties.Compare Life Insurance Companies Working with the best life insurance companies can save you a lot of hassles down the road.

So, make sure to compare life insurance companies on several metrics, including: Talk to an independent Insurance Agent Before you commit to a life insurance policy and pay your first premium, you should consider talking to an independent insurance agent.They can help you decide the type of life insurance policy that’s best for you.They also work with a network of the best life insurance companies, and can quickly get quotes and compare premium rates from multiple companies to help you lock in a quality, low-premium life coverage.