Life insurance gives financial security to those who will be left when one passes. If someone has loved ones or family members who depend on their income, life insurance is necessary.
The lack of knowledge about life insurance often leads to an overestimation of costs. Usually, people think that life insurance policies are expensive, causing them not to acquire life insurance.
Life insurance is a contract between the insured and an insurance provider. Once the insured passes away, the latter will pay the insured’s beneficiaries a lump sum called a death benefit. Typically, life insurance beneficiaries use it to pay bills, mortgage, or school; but beneficiaries can use them for any purpose.
The two main types of life insurance are term and permanent life.
Term life insurance provides coverage for a limited amount of time. Its premium payments also don’t change for the policy’s duration. Additionally, it is the most affordable and most popular type of insurance.
Opposite to term life, permanent life insurance policies protect the insured’s entire life. They are more costly than term life policies because they build cash value and provide lifelong coverage.
Choosing the Right Coverage Amount
People might find it challenging to decide on the amount of coverage to acquire because of different reasons.
Below is a brief guide to help one decide on insurance coverage.
- Take note of the expenses that need coverage. These can be a mortgage, retirement funding, or college expenses.
- From there, deduct amounts that can cover these expenses. These can be existing insurances or savings. Do not include retirement savings if it’s reserved for other purposes.
The total amount that resulted above is the coverage one needs. However, be reminded that this is only an estimate, and getting free quotes is recommended.
If the resulting amount is too expensive, a suggestion is to buy what’s affordable. Buying more later is also possible. However, rates will be higher depending on factors like age and health conditions.
Whole life insurance policies are especially helpful to those with dependents, financial security shouldn’t be optional. Being financially secure is a must, and life insurance policies provide that security.
At Roper Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (828) 697-6709 or Click Here to request a free quote.