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Insurance 101

Right or wrong amount—how much life insurance do I need?

Insurance 101

Right or wrong amount—how much life insurance do I need?

Flexible life insurance helps you figure the right and wrong amount.

Buying a life insurance policy is #AdultingGoals! But one thing we often overlook is the possibility of not having the right amount of coverage. We do the calculations, sure. But how do you know if you’re buying too little or too much coverage?

So we’re here to help answer the question, “how much life insurance do I need?” ‘Cause the truth is, the answer’s going to be different for everyone. Even with flexible life insurance options at the ready, it’s better to know what will work for you and your needs. So how do you figure it out?

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  1. Can you have too little life insurance?
  2. Can you have too much life insurance?
  3. Flexible life insurance for your future

Can you have too little life insurance?

It may seem like a weird question, but yeah, people can have too little term life insurance coverage for their needs. Women, for example, tend to be underinsured when compared to their male counterparts. According to a Haven Life study in 2019, the average coverage amount for women owning an individual life insurance policy was $231, 342. Compare that to male respondents whose average coverage amount was $423,102.

There may be a number of reasons why women select lower term life insurance coverage amounts than men. But it’s important to remember that, prior to the COVID-19 pandemic, two-thirds of mothers were either the sole or primary breadwinners for their families. $400k and up can go farther for loved ones, business and final expenses than, say, $200k.

Can you have too much life insurance?

Having too little life insurance can be a scary thought. On the flipside, you could find yourself paying for more coverage than you actually need. You want to be sure to not overestimate the amount of debt or needs you have. For instance, let’s say you had $500k in debt. Would you really need a $2 million policy? Probably not.

Having such a high-amount policy means higher premium payments. Now, the most common term life insurance length is 20 years. Let’s say you’re thinking of covering final expenses, such as funeral costs, debts, and your kids' education. If your financial situation changes, you don’t want to lose your policy, the coverage and that protection. Instead of maxing out coverage, wouldn’t flexible life insurance be better

Flexible life insurance for your future

In this sort of post- but not really post-COVID-19 pandemic world, we’ve learned that life can change in an instant. Which is why having flexible life insurance is so important. You gotta keep up with the rollercoaster that is life. Some insurers don’t offer flexible coverage options. What you see is what you get.

At Wysh, we offer flexible coverage options that can grow with you and meet your needs as they change. We answer the question “can I increase my life insurance coverage?” with a resounding “yes!” So whether you want to focus on education now and your business debts later, you can adjust your coverage at any time. You can even link your bank account to reduce your bills as you pay off those debts. How cool is that?

So when you sign up for a Wysh policy, don’t worry about having too little or too much coverage right now. You can adjust your coverage amount at any time and our Wysh Granters support team is available with white-glove customer service  to help you and your loved ones out. There’s no one-size-fits-all insurance option. There’s only the option that’ll work best for you.

The opinions we expressed in this post are for general informational purposes only and are not intended to provide specific advice or recommendations.