$200,000 in Coverage
Why? Sheila makes around $22,000 a year, doesn’t have any significant savings at this point but wants to cover her student loan, car loan, and any debt accrued with credit. She doesn’t need more than this because she has no other financial assets she needs to cover.
20-Year Term
Why? Though Sheila could apply for the longest term possible because she is only 26 years old, she opts for a 20-year term because she will have paid a significant portion of her debts by then. She also knows that she can always convert her policy, especially if she starts a family or buys a house.
$140.00 Premium Per Month
While any amount is significant to Sheila right now, securing a policy for this amount is a great decision, especially because it protects her family from any unnecessary financial hardship.