Buying life insurance in Las Vegas comes down to your family goals and how you want to provide for survivors after you’re gone. It’s a remarkably important decision to make, although many people wait until retirement to consider it. Life insurance rates are most affordable when you’re young.
Here are a few useful tips to consider when buying life insurance in Las Vegas.
- Determine Your Coverage Period
Depending on your preferences, you can buy life insurance for a lifetime or a few years. A whole life or universal life plan lasts a lifetime while a term life plan is valid only for a specific period. Although a whole life plan is more expensive, it provides more benefits such as cash value.
A term life plan might last for 10 to 25 years. As soon as it expires, no further benefits are available. The advantage of a term life plan is you’ll pay a lower monthly premium, and your family will be covered if you die while the policy is in effect. Single individuals favor term life plans, while families often prefer whole life or universal life plans.
- Calculate How Much Coverage You Need
You can determine your life insurance coverage needs using the “DIME” method. DIME stands for debt, income replacement, mortality, and education. Debt coverage pays off your mortgage, private student loans, and other significant loans. Income replacement is a benefit if you become disabled. Mortality covers burial costs. Education expenses pay for your kids’ education.
A major advantage of a whole life account is its value grows at a guaranteed rate and is tax-deferred.
- Consider Other Objectives
While the main purpose of life insurance is to pay benefits to your loved ones after your death, a whole life plan also provides benefits to you when you need cash. Since your account has a cash value that grows over time, you can borrow or withdraw from it when you need immediate funds. In that sense, a whole life plan is like an investment in building a financial safety net.
A whole life plan can replace your income if you ever become ill or injured and are unable to perform your regular job.
- Choose Your Beneficiary
You’ll need to name a beneficiary in your plan so they can receive benefits after your death. It’s important to avoid naming a minor since children will not receive direct payments from your life insurance company. Also, you shouldn’t name your estate as the beneficiary since it can cause tax headaches.
You should consider creating a formal plan to decide how funds will be allocated for your business. Also, decide who will be in charge of your business and for how long.
- Consult a Trusted Advisor
When you’re ready to buy life insurance in Las Vegas, discuss your needs with trusted experts. A reputed life insurance advisor can help you determine the type of plan and the amount of coverage you need.