Many people have begun to consider the need for an insurance policy on life and, if yes, what amount they need. Unfortunately, life expectancy has been declining lately. Here is some basic information about life insurance to assist you in deciding if it’s the right choice for you and your family members.
Do I Need Life Insurance?
Life insurance is paid out upon your death and provides funds to whomever you choose as the policy’s beneficiary. Most often, beneficiaries include spouses, children, and partners. Still, they could also welcome anyone who relies on your income to make ends meet, such as your children or siblings with an impairment.
Will your children be capable of attending university? Without you to care for them, would your family be in danger at their home? Suppose they can pay for what they are currently spending money on and have prepared for in the future. In that case, the life insurance policy is essential. It assures everyone involved that they’ll be ok financially, even in a catastrophe.
What Amount of Life Insurance Should I Buy?
The most common rule is to provide at minimum 6-10 times your earnings by purchasing a life insurance policy. But, you might want to go higher in the case of a significant amount of dependents, a large mortgage, or any other expense which are hard for your family to cover in the event of your death.
A significant life insurance policy can be challenging and expensive to acquire as you age due to the likelihood of having to purchase the policy growing with the advancing years. Thus, getting your insurance when you’re healthy and young is ideal, allowing you to let it develop without burdening your finances and reducing the possibility of being denied insurance due to health issues or advanced age.
What Are the Various Kinds of Life Insurance?
There are three main types of insurance for life:
- Term Life insurance – Insurance that covers a specific duration of time
- Whole life insurance – Coverage for the rest of your life
- Universal life insurance – A term and whole life combination with higher adjustable premiums
Selecting the right insurance and determining the appropriate amount can be difficult. It is why it’s crucial to consult with an experienced insurance agent and not purchase any policy you can find online. Do you need help finding the insurance policy that is right for you? Call Ottawa Life Insurance at (613) 454-1424 or email firstname.lastname@example.org to get the personalized service you want.