There are so many life insurance options that the complexity can paralyze you into not making a decision. This is a problem since life insurance is important if you have dependents, are a sole or majority income provider, and have major debt.
Personally, I took out a 10-year, $1 million term life insurance policy when I was 28 when I took out about $1.2 million in mortgage debt. I didn’t want to saddle my girlfriend at the time, the burden of having to may off that mortgage in case I were to die. She lived with me in the house and was the beneficiary of the house. I already knew I wanted to marry her.
Then I decided to take out another 10-year term life insurance policy in my later 30s in anticipation of having children. Three years after I took out the policy, I had my son, who is a miracle. Then we miraculous had a daughter 2.7 years later! It was then that I realized I should have taken out a 20-30-year term life insurance policy instead..
When I went back to try and get more life insurance at age 42, I was met with a surprise that my premium would go up multiple fold because I was over 40 and had gone to the doctor to check out my snoring, for fun! Lesson learned. Never see a doctor for a non-life-threatening health issue before getting the ideal life insurance policy you want.
Not only do I regret not getting a longer term life insurance policy, I kind of regret not getting a permanent life insurance policy that could have taken advantage of the bull market since 2009.
To minimize confusion, let’s have a detailed look at all the various life insurance options so you can make the best choice for you and your family. I’ve spent over 30 hours analyzing all the life insurance options.