Insurance and Finance

The Simplest Answer to Buying Life Insurance

By Peter Simek 1.24.18

As the old saying goes, there are only two sure things in life: death and taxes. Unfortunately, while we must face taxes every April, most of us don’t enjoy thinking about our own death. That can be a challenge when it comes to buying life insurance, says Joe Flores, a Texas Farm Bureau Insurance Agent in Midland.

Flores says that too often, people don’t start thinking about life insurance until they become grandparents. But with life insurance, even though it’s a decision many would prefer to delay, it’s one that’s actually easier — and makes more financial sense — to make early on.

Act Early

“Many times, it is too late,” Flores says. “The older you get, the more expensive it gets. Life insurance is a privilege, not a right. If you are unhealthy, then you don’t receive insurance. For many people, by the time they are [of] grandparent age, it is either too expensive or their health factors do not allow for it.”

While it may feel like an overwhelming decision, Flores has a very simple answer to buying life insurance: You should start thinking about purchasing a policy the moment someone becomes financially dependent on you, and you should purchase coverage equal to around 10 times your annual income.

Consider Carefully

“That has always been a good rule of thumb,” Flores says. “However, if you go through your insurance review, sometimes you figure out that you may need less, or you may need more. Factors that go into that are the debt that you have at the point that you purchase insurance, how much money you make each year, and other investments you may have.”

You will want to designate an adult as your beneficiary. If you have children, that adult should be the person who will use the money to take care of your children. In many cases, that is a spouse, but if you are divorced, you may designate the beneficiary as a mother, brother, or sister.

Enjoy Peace of Mind

At the end of the day, the greatest benefit in buying life insurance is the knowledge that your loved ones will be taken care of no matter what happens.

The more aware you are of your own budget and needs, the more comfortable the decision will feel. A Texas Farm Bureau Insurance Agent can help you talk through these things.

“I tell all my customers, regardless of what you decide to do, never go above your budget,” Flores says. “At the end of the day, you want to be able to protect your family.”

Call your Texas Farm Bureau Insurance Agent today to talk through this important decision and find the right life insurance policy for you and your family.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. Life insurance products are offered through Southern Farm Bureau Insurance Company.

© 2018 Texas Farm Bureau Insurance