Life insurance is more complicated than you might realize. Though it’s absolutely a necessity, it can be hard to figure out what kind of coverage you really need. Instead of just going with the first ad you see, it might be a good idea to figure out how to tell what type of life insurance you need and which types you don’t. 

Below are a few questions you should ask yourself to get the right answer.

How old are you?

The first factor which you are going to contend is your age. Stop and think about the life goals that you want to accomplish and what impact your death might have on your family or loved ones. 

It’s relatively easy to get insurance in your 20s, but you’re looking at an investment that isn’t likely to pay off in the near term. Getting coverage in your fifties or later is much more expensive, but it’s often seen as a more realistic near-term expense.

How healthy are you?

Your health is also something to be concerned about, at least insofar as life insurance policies are concerned. The better your overall health, the less of a risk you pose to the insurer and thus the lower your payments.

If you are in poor health, on the other hand, you might have to pay more because the insurance company assumes it will have to pay out soon. As a consumer, you need to look for insurance that’s likely to pay out in the situations that you’re more likely to encounter.

What is covered?

It’s also a good idea to look at what’s covered. If you buy term life insurance, you’re getting a benefit only if your coverage vests (i.e., you die) during the stated term. This isn’t usually a reliable choice for younger people, but it can cover emergencies. 

Whole life, on the other hand, tends to be more expensive but it will cover you no matter when you die. You’ll also want to look at the overall value of your coverage, mainly if ‘sell my life insurance’ is part of your long-term financial planning.

Can I afford it?

Finally, look at affordability. Both term and whole life insurance are relatively inexpensive, but the coverage you need still needs to fit in your budget. If you are young, single, and have no family, your money might be better spent elsewhere. If you have a family or those who rely upon you, you may not be able to afford to skip this type of coverage.

Don’t be afraid to ask the tough questions about life insurance. Think about where you are in life, then think about the coverage you need. Once you figure out the type of coverage that makes sense for you, you’ll be able to choose the product that suits your lifestyle.

This article was written by David Leto from 50plusfinance and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.