What is Life Insurance?
If you’re like many people, you’ve probably asked this life insurance question before. It’s a great question!
Life Insurance is simply a means of protection from a loss of income that is a result of someone passing away. The policy has a beneficiary who is named in the policy and they are the recipients of the cash value of the policy when the policy holder passes away. It’s simply a means of protection from a loss of income at the time of the passing away of the insured.
Why Buy Life Insurance?
We understand that Life Insurance isn’t for everyone. That’s why it’s important to understand what it is and how it could benefit your family. You may decide that a life insurance policy isn’t for you but we believe there are at least three great reasons to purchase a life insurance policy if it is.
1. To cover any final expenses.
Many people don’t realize that the cost of a funeral has gone up over the last several years. The average funeral can cost upwards of $10,000.00. A cheap life insurance policy is a great way of making sure that your family doesn’t suffer a sudden financial calamity if you pass away. This is especially important, if your family is already on a tight budget.
2. To cover future expenses.
Let’s say that you have ongoing monthly expenses like a car payment, mortgage payment and school loan payment, just to name a few. One of the things that is important to remember when considering life insurance, is that these payments won’t go away after you die. They will be passed on to your family. This is another great reason to look into at least take a look at some cheap life insurance plans.
3. To cover estate taxes.
Another obligation that doesn’t go away after you die, taxes! Depending on the size of your estate, this could be a significant amount due to the IRS should you pass away. A term life insurance policy can go a long way to ensuring that Uncle Sam gets paid after you die.
How Much Life Insurance?
A term life insurance policy can be pretty affordable. How much you decide you need is up to you and your family. If you are a healthy, non-smoking 40 year old male and you are looking to get around $250,000 of coverage, you can expect to pay anywhere from $50-$120 a month for a decent life insurance policy. If you’re a little older there are some great companies offering life insurance for seniors. The key is knowing where to look.
If you’re unsure how much coverage you will need, give one of our licensed insurance agents a call. They’ll be happy to answer any questions you may have.