4 things you need to know about life insurance
If you feel mystified and somewhat confused about the topic of life insurance, you’re not alone. To help take the mystery out of the topic, here are the answers to four essential life insurance questions.
1. Do I need life insurance?
If a loved one counts on you for financial support, you most likely need life insurance. Even if you have group coverage from your employer, it may not be enough to protect your family and may terminate when you leave the company.
2. How much do I need?
You want to replace your annual income and cover your family’s living expenses, education savings, your funeral costs and final income taxes.
3. What kind of insurance should I get?
There are two main types of life insurance – term and permanent. You choose term life insurance for a specific period, such as 10 or 20 years, to protect your family if you pass away unexpectedly. You choose permanent life insurance when you need coverage that lasts your lifetime. Permanent insurance meets a variety of needs, including creating an estate, covering taxes on estate assets, and providing for a child with special needs.
4. Do I have to provide information about my health?
Insurers need health information in order to determine the cost of covering you. Requirements vary according to the product and amount of coverage. Often, all that’s needed is an application or questionnaire that includes your age, height, weight, health status, medical history and other factors. Sometimes a medical test is required.
Now that you know the basics, I’d be happy to meet with you and explore your unique needs.