Life insurance can provide your loved ones with protection in case of a death. While it can be a heavy topic to plan for, it’s ultimately a protective measure for your loved ones. Here are six things you should know before purchasing a life insurance policy;

  • There are two different types of life insurance. Term & Whole Life. Term life insurance provides financial protection for a certain period of time. If you die within this period, your beneficiaries receive a payout, or “death benefit.” Whole life insurance, however, covers you for the entirety of your life, and is generally more expensive and complicated than term life insurance.
  • Life insurance isn’t just about covering your loved ones in case you die. In addition to covering the salary you contributed to your household, it’s also meant to cover your funeral and burial expenses.
  • Young, healthy people could benefit from life insurance too. Although many young people may not have death on their radar, the younger and healthier you are, the lower your premiums will be, especially if you purchase whole life insurance early.
  • Your employer’s life insurance policy may not be enough. If your employer offers life insurance through a group policy, the coverage may not be enough to care for your loved ones, since coverage may be limited to 1-2x your salary.
  • You may need life insurance, even if you have no dependents. Life insurance doesn’t just benefit children of a policyholder. Many cohabitating couples, elderly parents, or other close relatives could still benefit from a policy.
  • Your policy should change with the times. Once you purchase life insurance, it’s important to do regular reviews to ensure your plan still fits your needs. Life changes such as a change in income, starting a family, or health issues may change your coverage needs.

Navigating the various options regarding life insurance can be daunting. That’s why as a broker, I do the legwork in finding the right coverage and carriers to fit your needs, all at no cost to you. At Smitherwood Insurance, we’re proud to offer all the resources and benefits of a large agency without sacrificing personal service and care.