Life insurance needn’t be complicated. Especially if you have the assistance of an experienced independent insurance agent to work with. They can help explain the details of any policy you may be considering. Before you get to the details, however, it can help to determine the role life insurance will play in your life and that of your family. This can be relatively simple, and will impact just how much life insurance you may require.
To Cover Final Expenses
Some may decide that just having enough life insurance to cover the costs of final expenses may be sufficient. Among those costs would be expenses involved in a funeral and perhaps even final medical bills. This frequently will be a modest amount of life insurance.
Along with covering final expenses, you may decide to acquire enough life insurance to cover any debts you may leave behind. This can help your estate from being diminished by debts. These debts should include credit cards, car loans, mortgages and even student loans. This can increase the amount of insurance you need significantly but will be extremely valuable to those you leave behind.
A Financial Safety Net
Once you’ve covered final expenses and debts, you may choose to provide for the financial security of your family. This may include enough to provide income for several years, a nest egg and even funds for college expenses for children. For some, this is the ultimate goal in the acquisition of life insurance.
A Financial Asset
A whole life insurance policy may not only provide financial protection upon a death, but it may also become a financial asset as years pass by. This is because whole life insurance policies can build value that increases the longer they are kept in force. This is an asset that can be used in emergencies or for opportunities. Cash values of life insurance policies can be used to help pay for college or serve as part of a retirement fund. Some young marrieds will buy whole life insurance not only because they need the protection, but they may have difficulty setting aside savings. The “forced savings” of a whole life policy may be very helpful for them.
To talk about your situation and how life insurance can best help you, contact one of our independent insurance agents. The can compare rates and policies from multiple companies in the search to find you the best value for your circumstances. Life insurance doesn’t have to be complicated. Certainly not with the help of our independent agents. Contact us today.
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