Life Insurance Basics: Important Things You Need to Know
After you die, how will your family survive financially? Due to the present economic uncertainties, it's a tough question for many people to answer. With the rising cost of living, it's increasingly difficult for Americans to save money for emergencies. A viable solution is to search for "life insurance near me."
Life insurance acts as a safety net for your loved ones after you pass away. It helps pay off your mortgage and provides for your children's education. Even if you don't have a big bank account, life insurance can be the key to your family's sustainability after you're gone. Another key benefit of carrying life insurance is that it can lower tax liabilities and protect your financial assets.
Who needs life insurance?
Anyone raising a family or having other financial obligations needs life insurance to protect their survivors' interests and ensure their wellbeing. Not only does it provide them with living expenses, but it also pays your funeral costs, which can amount to thousands of dollars. Furthermore, it saves your loved ones from getting stuck with a stack of bills. If you co-sign a student loan with your son or daughter, your life insurance policy will pay their unpaid debts.
Parents, spouses, and caregivers should particularly think about a life insurance policy. Whether you earn income or are a stay-at-home parent, it's essential to set up resources for your children to tap into. Although a child cannot directly access benefits until they become an adult, you can name a trustee to manage these benefits.
Homeowners who make mortgage payments should definitely consider a life insurance plan to avoid the possibility of their family losing the home. Wealthy individuals with valuable assets to protect should consider a life insurance policy to cover paying estate taxes after death.
How much life insurance do you need?
The right amount of life insurance coverage depends on how much money you want your beneficiaries to receive when you die. The typical amount of coverage is around 10 to 30 times your income level. You can calculate an estimate using the DIME method, which stands for debt, income, mortgage, and education. You can also factor in major assets such as savings.
How much should you pay for life insurance?
Your life insurance cost will depend on your health and age. Young people in good health pay lower rates than individuals of any age with health issues. Generally, the longer you wait to search for "life insurance near me," the more you'll pay. So the sooner you enroll, the less you'll pay compared to waiting until you're near death.
Life insurance can be as affordable as $30 per month for a 20-year $500,000 policy. Talk with an insurance expert to get a clear idea of what your policy will cost. Contact us at Amity Insurance Group today to learn more about the right life insurance policy to protect your loved ones.