Why do I need life insurance?
Life insurance provides financial security for loved ones in the event of the insured's death. It can help cover final expenses, such as funeral costs, outstanding debts, and living expenses, without burdening loved ones. It can also provide a source of inheritance for family members or charitable organizations.
How much life insurance do I need?
The amount of life insurance needed depends on individual circumstances, such as income, debts, and family size. A general rule of thumb is to have enough life insurance to cover 10-12 times your annual income. It's important to work with a financial advisor or insurance agent to determine the appropriate coverage.
What types of life insurance are available?
There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a specified period, typically 10-30 years, and is generally less expensive. Permanent life insurance provides coverage for life and includes a cash value component that can grow over time.
How do I choose a life insurance policy?
When choosing a life insurance policy, it's important to consider factors such as coverage amount, premium cost, policy length, and additional features such as riders. It's also important to research and compare policies from different insurance companies and consult with a financial advisor or insurance agent.