Who can benefit from life insurance coverage?
Life insurance can fill a variety of needs, including protecting your family’s finances when you are no longer around to do so. Not everyone needs life insurance, but if your children, partner, or other family members depend on your income to cover financial expenses, then it’s likely that you’ll need coverage. To help you better understand who needs coverage and why, read on.
What is life insurance?
Life insurance is designed to help your family financially when you are gone. It can pay your dependents money as a lump sum or as regular payments when you die. This gives you the reassurance that your dependents will be looked after if you’re no longer there to provide. Life insurance can cover remaining debt, funeral expenses, everyday living expenses, and help your family reach future financial goals.
There are two main types of coverage you can choose from:
- Term life insurance: Runs for a fixed period of time, known as the ‘term’ of your policy, such as 10, 10 or 25 years. This policy will only pay out if you die during the policy term.
- Whole life insurance: This coverage protects you for your entire life and will pay out no matter when you die, as long as you keep up with premium payments.
Determining if you need life insurance
The simplest way to understand whether you need life insurance is to look at your current situation and responsibilities. Coverage needs aren’t one-size-fits-all, but doing this can give you a better understanding of which life situations would benefit from having a policy in place. Generally, if one or more situations apply to you, consider getting coverage:
- You’re single with debt
- You’re married
- You’re married with kids
- You’re a single parent
- You are a stay-at-home parent
- You have grown children
- You’re retired
- You’re a small business owner
Generally, those who are single with savings that can cover their debts when they die do not need to purchase a policy. For everyone else, there’s a quality life insurance policy.
Are you still wondering whether you could benefit from coverage? Talk to the life insurance experts Donald Weiss Insurance Services. We can help you determine your needs and suit you to a reliable policy.