Life insurance provides a level of financial security that has the power to put many minds at ease when facing the unknown. While the policy can be comforting, navigating the decision process is often a challenge. Below are three questions you should ask to help you choose the right plan for your needs.

3 Questions to Ask About Life Insurance

1. How Much Coverage Do I Need?

The first step in determining the right life insurance policy is deciding how much coverage you realistically need. Start with potential funeral costs in your area, and begin factoring in your debt, including student loans, mortgages, and vehicle loans. Finally, consider the financial needs of your family. While there isn't a specific amount that fits everyone, many agents suggest accounting for at least three years of income.

Many employers provide a life insurance to their employees as part of their benefits package, however, the coverage varies. If you have such a policy in place, you may deduct that total from your calculated amount.

2. What's My Budget?

After determining out how much coverage you need, it's time to figure out how much you can afford. Calculate all of your expenses and subtract the amount from your monthly earnings. Take the remaining balance and factor in details like savings contributions, emergency funds, and an entertainment allowance. Once every aspect of your spending has been subtracted, you know what you can afford on a monthly basis.

3. What Type of Insurance Is Right for Me?

Once you've determined the amount of coverage you need and your budget, it's time to speak with your insurance agent about the type of policy you should consider — whole or term. Whole-life insurance provides full-life coverage, but it often requires higher monthly fees. Term coverage, on the other hand, typically provides short-term coverage for a specified amount of time, but it often boasts smaller payments. One way to meet your coverage needs while sticking to your budget is to combine policy types.

Get answers to all of your life insurance questions by contacting Kramer-Myers & Werring-Dickerson Insurance. Since 1960, the independent agency has provided high-quality service to meet the needs of their Batavia, OH, customers. From life to home insurance, they work to find every client the best coverage for their circumstances and budget. Request your life, home, or auto insurance quotes online or by calling (513) 732-1461.