If loved ones depend on you financially, it can be difficult to know what will happen if you're no longer around. However, a life insurance policy can offer peace of mind, as it'll provide a safety net for them to rely on. To ensure you get the most coverage for your money, follow these do's and don'ts when shopping for a plan.

Do:

Determine how much life insurance you need.

The amount of coverage you need mainly depends on your outstanding debt and income. Add up how much you pay each month for mortgage or rent, credit card balances, and other loan obligations. Then, factor in additional costs, such as a college fund or funeral services. Finally, multiply your annual income by 10 to determine the amount needed to cover your expenses. This figure should provide you with a general guideline of how much life insurance you'll need.

Select a policy that fits your needs.

The two most common types of life insurance are term and permanent. A term life policy is available for one to 30 years, as the policyholder pays monthly premiums until the time ends and then has the option to renew, cancel, or select a different term. Rates are fixed and are typically lower if a policy is activated when you're younger. Permanent life insurance is in place for a lifetime, as long as the premiums are current. Unlike term, a permanent plan allows the policyholder to withdraw funds while they're still alive.

Don’t:

Fail to make adjustments as your life changes.

Significant life events, such as a marriage, the birth of a child, or a divorce, can impact your life insurance coverage. Let your insurance provider know about these changes so your policy can be adjusted to accommodate them. In general, it's a good idea to review your life insurance at least annually to ensure it's still meeting your needs.

Only look at the price.

Like any insurance policy, you'll want to go for the best value rather than the best price when selecting life insurance. While an inexpensive plan might seem ideal, you could be missing out on benefits or features that would make life better for you and your family. Look for an option that'll give you the most perks for your money to ensure you're getting the best policy you can afford.

Shopping for life insurance doesn’t have to be confusing or overwhelming. North Carolina Farm Bureau Insurance® Group in Matthews will help you select customized, reliable, and affordable coverage. This company has a team of experienced and friendly agents who are ready to answer your questions in a no-pressure environment. To learn more about their available options, visit them online. To get a free, no-obligation quote, call (704) 841-8700.