As we all know tomorrow is never guaranteed, and you need to make sure that those you care about will be taken care of when you pass away. Term life insurance is a great and affordable way to prepare for your family’s financial future when you are no longer there to provide. The following are a few things to consider when purchasing your term life insurance policy.

1. Buy a generous policy – As a rule of thumb you should purchase a policy that provides 20 times your survivors annual needs. The reason for this being that it allows them to invest conservatively and live on the interest rather that take money from the principal. For example: If your spouse requires $50,000 a year living expenses that would work out to be a $1 million death benefit. That seems like it would cost a lot, but realistically it could cost as little as $50 per month.

2. Remember you cannot make a child your beneficiary – If you list a child as the beneficiary the check will be written to the child’s guardian, and you cannot guarantee that person will use the money in the manner you would have wanted. Instead, you should set up a trust and make the trust your beneficiary. When you make the trust the beneficiary whomever is appointed as the trustee will be able to use the money to take care of your child according to the guidelines you’ve set.

3. Make sure to tell the truth – Lying on the application may get you a cheaper rate up front, but you can be sure that if a large claim is made the insurance company will investigate before paying out. It is not worth the risk of not having your loved ones provided for to save a little money on your premium.

4. Buy while you are healthy – Older people who are not in the best of health will pay steeply higher rates.

Upstate’s Choice Insurance offers all types of term life insurance plans. Give us a call today for a quote on your term life insurance.