Life insurance isn’t a glamorous topic—but it is an important one.
A South Dakota life insurance policy can provide financial stability in the wake of your death so that your loved ones can maintain their standard of living in your absence.
But how do you choose the right South Dakota life insurance policy to protect your family?
With InsureMe’s free referral service, insurance shopping has never been easier. Just enter your information to the right and receive up to five free quotes on South Dakota life insurance for fast, easy comparison.
Identify Your Need
The sad reality is, after you die, your family may struggle to make ends meet. South Dakota life insurance can help protect your family from financial stress and provide supplemental funds for:
Income Replacement—any financial contribution you make to your family is likely to die when you do. You will need to consider what would happen to your dependents if they no longer had you to rely on.
Paying Outstanding Debt and Other Financial Obligations—the proceeds from your South Dakota life insurance may be needed to pay for your funeral and burial costs, as well as medical bills, mortgage payments, college tuition or retirement savings.
Estate Tax—if you have a large estate, it may be subject to taxes after you die. South Dakota life insurance can pay for your estate tax so your beneficiaries don’t have to liquidate their assets.
Charitable Donation—you may wish to donate some of the proceeds from your South Dakota life insurance to a charitable organization, or to start a foundation in your name.
Once you have identified the areas in which your loved ones will need financial assistance, you will want to determine how much money is needed for those things.
Choose a Dollar Amount
According to the Insurance Information Institute, many experts recommend buying South Dakota life insurance in the amount of five to eight times your annual salary. While this is a good reference point, your family’s specific needs may vary depending on your financial situation, and whether or not you support any dependents.
If you have dependents, you will want to sit down and allocate funds for the following areas:
You will also want to estimate how inflation will affect these areas of your family’s finances.
If you don’t have dependents, you will still want to consider purchasing South Dakota life insurance. Purchasing while you’re young will help you lock in a low rate, which will benefit you in the future if you get married or have children.
Or, you may want to leave money behind for family, friends or a special charity. In this case, you should purchase enough South Dakota life insurance to cover your funeral and burial expenses, as well as any outstanding debts and loans so that your loved ones are not burdened financially after you die.
The bottom line is that South Dakota life insurance should be considered at any age to ensure that your loved ones are not encompassed with both emotional and financial stress after you die.
Select a Product
After you have determined your needs, you will need to decide which type of South Dakota life insurance is best for you. The most common forms of South Dakota life insurance are term and permanent life insurance.
Term Life Insurance
Term life policies provide coverage for a period of one or more years, meaning a death benefit will only be paid if you die during your policy’s specified period. However, term policies generally carry lower premiums and allow for a higher death benefit for less money—making them very attractive to folks that need coverage, but don’t have a lot of money to spend on it.
Permanent Life Insurance
Permanent life policies offer coverage throughout your entire life and often carry a guaranteed death benefit. While permanent life policies have higher premiums, part of that money is invested by the South Dakota life insurance company to build additional cash value over time.
It’s important that you discuss your needs with a South Dakota life insurance agent so that you purchase a policy with the coverage you need, at a price you can afford.
Protect Your Family with South Dakota Life Insurance.
Find a policy today. Just enter your information to the right and receive up to five free quotes for South Dakota life insurance.