The more you know about the basics of insurance — how it works, coverage types, how much you need — the more clarity you’ll have. You’ll make more educated choices about what’s best for you and your family.
What impacts pricing?
There are also several factors that could affect the cost of your financial coverage. We’ll use life insurance as an example. Term life typically doesn’t cost as much as whole life insurance, but doesn’t offer the lifetime coverage or additional financial benefits. Age, health, gender, driving record, occupation, your health, and the amount your loved ones would receive all impact the pricing of life insurance.
How much does life insurance cost?
You can get a quote on term life insurance with this tool. And how much coverage you need depends on many factors, such as how many dependents you have, how much you expect to earn, what lifestyle you hope your loved ones can experience, and more. A simple rule of thumb is that if you’re in your 20s, an ideal amount of coverage would be 30 times your income, and as you age, less may be required. In your 50s, you might need only 10 times your income. This is based on how many earning years before retirement you’re covering.
What does disability insurance cost?
How much does it cost to help protect your income? Use this calculator to estimate the monthly cost of disability income insurance in less than one minute.
How can I use HSAs to help pay for medical expenses?
If you have a High Deductible Health Plan (HDHP) with a Health Savings Account, use it to set aside money to help cover any out-of-pocket expenses. You can make pre-tax contributions into an HSA, which will help you save on taxes.
Funds can be withdrawn tax-free to pay for or reimburse out-of-pocket medical, dental, and vision costs. But keep in mind: HSAs cannot be used to pay health insurance premiums, the monthly cost you pay for your coverage.
#2019-85006 Exp. 8/21