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Insurance 101

What’s the right and wrong amount of life insurance?

Insurance 101

What’s the right and wrong amount of life insurance?

Some policies may leave gaps in coverage. Wyshbox can close them.

Buying a life insurance policy is #AdultingGoals. But one thing most people don’t think about when planning for their family’s financial future is the possibility that they might not have the right amount of coverage. As you shop around and understand how term life insurance works, it’s important to know if you’re buying too little coverage or too much of it.

Enter Wyshbox. Our hyper-personalized life insurance memberships allow you to buy the exact coverage you need, no more, no less. But how exactly do we do this? Read on as we get into the nitty gritty on how we accomplish this and why our flexible coverage policies may be right for you.

  1. Too little coverage
  2. Too much coverage
  3. Flexible coverage for your future
  4. Coverage is important

Too little coverage

The first thing you might think of when reading the term “life insurance gap” is having too little of it. The truth is, it’s a very common scenario policyholders run into. Of course, the biggest concern with being undercovered is your death benefit not being high enough to protect your beneficiaries, should you end up pushing daisies. Many life insurance agents recommend multiplying your salary by 10 and then getting coverage that equals that amount.

But what about your monthly cost? Many customers don’t know how to accurately calculate insurance premiums based on their specific needs. Also, there’s a preconceived notion that high coverage means just another big bill to worry about every 30 days. However, at Wyshbox, we’re not in the business of burdening peeps with paying more money. We just want to make sure you get enough coverage so that you don’t leave your family in a jam. So how do we do this? Well, we put our customers first by giving them the ability to tailor their coverage according to their unique needs. Our Wysh Builder tool is designed to look at all your current debt—from mortgage, to student loans, credit card debt, and more. You can then personalize the coverage amount that’s right for you and lower the possibility that your beneficiary would have to come out of pocket. Also, it doesn’t have to break the bank. Monthly costs start as low as $9!

Too much coverage

Ok, we know that having too little life insurance can be a scary thought. But what happens if you’re paying for more coverage than you need? As people look at their debt, they might overestimate how much coverage to purchase. For instance, if you have $500,000 worth of debt, do you need a policy worth $2 million? Probably not. However, some customers may think that having more coverage is necessary to ensure no stone is left unturned. Besides month-to-month expenses, unexpected things can happen. If you do end up passing away, even funeral costs can be sky-high. Definitely a lot to think about!

A typical term life insurance policy will provide up to 30 years of coverage, so there are many things to consider aside from your current debt. Life costs and goals will fluctuate during this time and you and your family may have long term ambitions, like paying off your mortgage, school loans, credit card debt, and more. Wouldn’t it be great to tailor your coverage so you can build a plan that’s right for the present day and for the future?

So now you’re ready to build your Wyshes. So what exactly are Wyshes? They are the financial dreams and goals that you’d like to fulfill if you were to die prematurely. We can break Wyshes down into three main categories:

Pay off your mortgage, loans, and other debt – protect your spouse, children and pets so they will have the right amount of coverage they need to take care of all their expenses.

Tie up loose ends – make sure any outstanding bills (things like medical expenses, etc.) are covered.

Leave a legacy – pay for that dream wedding or send your ashes into space if you’re feeling futuristic.

Customizing your policy for your exact needs means you won’t get more coverage than what’s necessary, but you’ll still be able to meet your goals as well as protect your family. Win-win!

Flexible coverage for your future

If 2020 was any indication, life can dramatically change in the blink of an eye. So, having flexibility with your life insurance is über-necessary to keep up with the rollercoaster of life.  Some insurance companies have traditionally not been super-flexible with how they offer coverage, since the policies are sold on different tiers of lump-sum coverage. This can limit how much insurance a customer can buy and can then create the dreaded gaps.

At Wyshbox, we offer plans that not only cover the gaps, but are also flexible in coverage. Your life changes and you have goals. Maybe you want to buy that amazing condo or have a dream wedding. We get that you should be able to adjust your coverage as you see fit.  As long as your membership is active, you can change your Wyshes at any time and even link your bank accounts to reduce your bills as you pay off debt. How cool is that?

We also offer our Pay Less as You Go tool, which lowers your premium bill as your coverage needs go down.

Are you not a fan of doctors or needles? It’s all good! We also offer no-medical term life insurance, that’s 100% digital.

Our Wysh Granters work with your family and your lenders to make sure your loved ones are covered, your debts are paid, and also help with the claims process.

Coverage is important

Having flexible life insurance that covers everything you need is key. Working with a company that understands your particular circumstances will ensure that you have the right amount of coverage—not too little and not too much. The coverage amount you need will work with your unique life and goals. Since there is no magic number that will work for everyone, Wyshbox is here to offer protection that is tailored for each individual. With personalized coverage, flexibility, and our Wysh Builder tool you’ll be able to take control of your protection.

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