One of the major personal financing policies people decide to invest in is life insurance. Life insurance is a contract between an insurance policy holder and an insurer. It can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance. Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. There are various policies available, but how do you know if you need life insurance or what policies would cover your needs the best way possible? Read below to find out more.
Do You Need Life Insurance?
The need for life insurance varies on the household. It can range from a vital necessity to not as significant. If a loved one depends on you financially, it is strongly suggested to get insured. If you have a life insurance policy, there’s less likely a chance that your loved one will suffer financially because of the benefit they receive from the policy. It’s suggested that the following is more likely to need a life insurance policy, if:
- You’re Married
- You’re Married with Kids
- You’re a Single Parent
- You’re a Stay-At-Home Parent
- You have Grown Children
- You’re Retired
- You’re a Business Owner
- You have a family member with special needs, aging parents, or a loved one unable to provide significant income to survive.
Types of Life Insurance Policies
There are many varieties of life insurance. Choosing the right policy takes research and speaking with the right insurance agency. It’s important to figure out which policy can best cater to your needs. Policies reflect the needs it helps meet, protection periods, and costs. Some of the more common types individuals invest in are as follows:
- Term Life Insurance
- Universal Life Insurance
- Whole Life Insurance
If you’re thinking about investing in life insurance, contact your local insurance carriers to learn more about the policies they offer.