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Have you ever considered purchasing a life insurance policy but didn’t know where to start or what to do? You’re not in the minority. There are a lot of people who don’t know the ins and outs of life policies. And if you have a policy, do you know exactly what life insurance covers? Let’s get into that today and a little more.
What Are The Types Of Life Insurance?
Before we can get into the nitty-gritty, we need to differentiate different types of life policies. There are many types of life policies, and they all do different things. There isn’t a “best life” coverage because everyone’s needs are very unique. A single family with no kids may not need the same level of coverage as a family of five may require. The differences also become a little more convoluted as premiums fluctuate. They may vary based on family members’ ages and the overall health of the policyholder. There are more than just these types of policies, and we strongly suggest speaking with one of our licensed agents to help set you on the right path. Types Of Life Insurance: A Comprehensive Guide discusses a few variations of life policies.
How Much Coverage Do I Need?
The answer to this question is the same as before. It depends. Everyone’s goals in life are different, and the same can be said about everyone’s needs. The rule of thumb when getting coverage is that you want to purchase coverage that will supplement enough of your income to support your beneficiaries should you pass away. Let’s use this scenario as an example: Let’s say your income is $40,000 yearly. If you had a policy that offered $400,000 in coverage, your beneficiaries could invest that cash into the stock market and potentially see a return of 10% annually and then pull out $40k a year and continue to live off that. Of course, that is an option, but your beneficiaries can do a lot with the coverage you paid for. This scenario includes settling their debts, buying a home, or paying for education. For more information on how much coverage you need, I recommend this article on our site: Choosing The Best Life Insurance.
What Does Life Insurance Cover?
Simply put, a life policy provides you with peace of mind when it comes to protecting your loved ones. Life insurance covers many things; it can cover all funeral expenses, your child’s education, or your mortgage. The purpose of a life policy is to aid your beneficiaries during your time of passing, so your family has one less thing to worry about when you eventually pass away.
Life insurance does not have to be a journey you travel alone. Obtaining a friendly Empower agent to walk you through your options is a surefire way to success. Don’t let another minute pass! Call us today.
Life Insurance Questions?
We hope that this information on life insurance was useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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