One of the questions that we at George Ryan Jr. Insurance Group Inc, serving the greater Bourbonnais, IL, is frequently asked is how much life insurance should I carry. This is a complex questions and is based on a person’s income, debt, and their future income needs. For many people, the amount of life insurance that they need goes down as they age. As such, a decreasing life insurance policy may be ideal. This type of policy has a payout that gets smaller each year you are alive. Learning the benefits to this type of policy may help you decide if it is right for you.
It Reduces Your Carrying Costs
The biggest benefit to a decreasing life insurance policy is that it helps to reduce your carrying costs. It can be expensive to carry a high amount of insurance the older you get. With a decreasing policy, your policy amount decreases, helping to keep your payments affordable.
You Don’t Have to Worry About Decreasing Your Policy
If you do not have a decreasing life insurance policy, you have to go to your insurance company and start a new policy if your current policy is too high or starts to cost too much money. This can be time consuming and something you may not have time for. With a decreasng life insurance policy, the policy automatically decreases based on your age, meaning you do not have to worry about changing it yourself.
If you are looking to determine how much life insurance you need and either adjust your life insurance policy accordingly or take out a new one, let George Ryan Jr. Insurance Group Inc, serving the greater Bourbonnais, IL area, help. We can help you determine what your life insurance needs are and then put together the right policy for you.