Life insurance is overwhelming for a lot of people. No one wants to think about dying, but it is an important topic. At Freedom Insurance, we have heard a great many questions about life insurance, but some of those questions are more common than others.
These questions often keep people from exploring life insurance, even though they aren’t as overwhelming as they may seem. Let’s look at three common questions people have when it comes to this type of insurance.
Do I Need Life Insurance?
The biggest question most people have when it comes to life insurance is, do I need it? While the answer to this question isn’t always yes, it is in a high number of cases. You may think that because you are young and healthy that life insurance is an unnecessary expense, but if you have expenses or dependents, it is essential.
No matter what your health circumstances are, the more important question is whether or not you have someone depending on you financially, or if you have financial responsibilities. If you own and home and have a spouse, for example, you’ll want a life insurance policy so they have coverage for a funeral and housing expenses. Additionally, if you have debts, you’ll want a policy to help pay them off after your passing, so that your loved ones aren’t left with the payments.
How Much Coverage Do I Need?
The second most common question is, how much do I need? This question is more complicated and depends heavily on your individual circumstances. At minimum, it is wise to have enough coverage for a funeral because they can end up being very costly for your loved ones. If you own a home, having enough life insurance coverage to help pay for the home is a wise idea, so that your spouse or partner isn’t left with a large mortgage to pay on their own.
What Types of Life Insurance are There?
There are two main types of life insurance: term life and permanent life. Term life insurance is good for a certain period of time, usually 10, 20, or 30 years. Permanent life insurance is good for life, no matter how long that period of time may be.
Which policy type you choose is based on your individual needs. Are you just concerned that your mortgage is paid off should anything happen to you? A short-term policy may be enough to cover that. Do you want to make sure your spouse and children have coverage for the rest of their lives? Then a permanent policy is the way to go.
Your Best Resource for Life Insurance in MD
Life insurance is a stressful topic for many, but it doesn’t have to be. To discuss your options and have your questions answered, call us at Freedom Insurance today. We offer life insurance in Sykesville, MD and are happy to help you find the perfect policy for your needs!